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Q1. In 2009, it was proposed that the state of Nevada create an entertainment tax that "would require the state's 25 legal brothels to give the state some money on a per-transaction basis" [Friess, 2009]. Discuss the likely incidence of such a tax. Use an appropriate diagram as the basis for your discussion.
Q2. The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the restaurant operates will increase by 20 percent at the beginning of the year. Her current prices are competitive with nearby restaurants of similar quality. However, she is now considering raising her prices by 20 percent to offset the increase in her monthly rent. Would you recommend that she raise prices? Explain.
A company's cash sales for the month are $200,000 and its accounts receivable payments for the month are $100,000. What is its total incoming cash flow.
The terms of trade if the united states trades 1 can of soda for 5 units of clothing.
The university is seeking a grant to cover capital costs. How big of a grant would make this project worthwhile (to the university).
Under what situation would Gore be better off giving Bush a head start on putting mutually his presidential ticket.
In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer
Analyze a situation in which both parties entering into a contract could benefit, economically or otherwise, from slightly ambiguous language contained in the contract.
If the returns of the risky portfolio are normally distributed, what is the probability of returns being less than 29%.
Provide an appropriately labeled boxplot of the data below and use a randomization test to examine whether the null hypothesis holds that male and female turtles have the same mean serum cholesterol.
Each station's objective is to maximize its viewing audience, in order to maximize the station advertising revenue.
If you were a manager in a tobacco company, analyze the elasticity of demand for tobacco products. Evaluate the factors involved in making decisions about pricing tobacco.
What is the confidence interval for the proportion of households represented at a town meeting. Survey of households in a small town showed that in 850 of 1,200 sampled households.
What other economic factors are affected when taxes are raised or lowered, and how are they affected. Should the government increase tax rates on everyone as a way to equalize incomes and wealth.
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