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1) Is an MNC generally faced with incurring double taxation on its profits in the subsidiary's country? Why or why not?
2) "The reason the government has to step in and 'internalize' benefit and cost externalities is because people are basically selfish." Do you agree or disagree and why?
Joe's utility for Coke, x_1, and Pepsi, x_2, is define by u(x_1, x_2) = 5x_1 + 5x_2. Joe has an income of $100. Let the price of Pepsi equal $1. Derive Joe's inverse demand curve (price on the vertical axis and quantity on the horizontal axis) for Co..
A firm's production function is qi = .2*Ki.2Li.4. The wage rate in this area is w = $15, and the cost of capital is r = .05. Find the firm's short run cost function, if Ki is fixed at $100,000. If the good is exported around the world at a price of $..
Intellectual property laws are intended to promote innovation, but some economists, such as Milton Friedman, have argued that such laws are not desirable. In the United States, there is no intellectual property protection for food recipes or for fash..
Economist Gerd Gigerenzer characterizes heuristics as "fast and frugal" ways of reaching decisions. Are there any costs to heuristics being "fast and frugal"? Explain and give an example of how a fast and frugal method for doing something in everyday..
During the first 13 weeks of the t.v season the Saturday evening 8;00pm-9:00pm audience proportions were recorded as ABC 29% CBS 28% NBC 25% and independents 18%. a sample of 300 homes two weeks after Saturday night schedule revision yielded the foll..
What is the current minimum wage in IL and based on research what possible implications would an increase in the minimum wage post to the state of IL? Based on research and critical analysis what is the root cause of the great minimum wage increase d..
You are in charge of making recommendations based on economic forecasts to upper management of your firm, which produces widgets and employs 2,500 workers. Upper management has informed you that they are planning to build a new facility and hire 500 ..
Explain why the reduction in employment would be less than 5 percent in the latter case. In light of the short-run elasticity of demand for migrant workers, how easy do you think it would be for the industrial farms to replace the workers’ efforts by..
PC-World is a U.S. manufacturer of personal computers. The CEO is looking at opportunities for off-shore production. The selection of the country where PC-World will establish a production facility will depend on the following two factors: 1. The loc..
Illustrate what is the level of consumption at the equilibrium level of income. Compute the marginal propensity to save for this economy.
After you have been in a job for a while, you should portray your switching costs as:
q.this problem uses the solow model to analyze the e?ects of immigration. suppose that the economy is initiallyin
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