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About what percent of the worlds population earn about $2 USdollar (equivalent) or less per day?
A substantial increase in marginal tax rates will most likely encourage individuals to choose: Question 13 options: 1) to work more overtime. 2) to invest more. 3) to spend more of their scarce resources looking for tax shelters. 4) none of the above..
Compute the MRS of other goods for airline miles; i.e., the MRS that represents the slope of the indifference curves when x1 is on the horizontal and x2 is on the vertical axis.
You have been hired by the town of Bedford, Ohio, to conduct an analysis of ongoing operations by a local Coca Cola bottler. A study by the Ohio Environmental Protection Agency found that this firms’ water pollution is negatively affecting the enviro..
What do temporary changes in the tax code do for incentives? Does this encourage long term planning? Should the government encourage long term planning? Should the Government use tax policy to change behavior?
Using the broken window fallacy as described in “In The News” (p. 14 of Principles of Microeconomics), explain why some journalists, policy makers, and others proclaim that natural disasters are good for the economy in terms of eliminating old infras..
Define Absolute convergence in the Solow Growth Model. Define Conditional Convergence in the Solow Model.
Because increased government spending or tax cuts cause higher government deficits, they also contribute to a rise in total planned expenditures and aggregate demand. Previously, the government operated with a balanced budget; however, recently, ther..
Suppose you borrow $25,000 to buy a new car at an annually compounded interest rate of 12% per year compounded monthly. The loan is to be paid back monthly for 4 years (48 payments total). How much will the monthly payment be?
Susan received news from her boss that she has been given a raise in incomes from $20/ hour to $25/ hour for her 40 hour week job, effective immediately. Over the next week her purchase of wine increased from 4 bottles to 6 bottles. Compute her incom..
Sara Shopper was buying groceries at Tim's Top-notch Grocery Store. The stock boys were stocking the shelves when they dropped a bottle of catsup. It reminded her of a pool of blood. Being a person who could not stand the sight of blood, she fainted ..
Suppose the firms in a monopolistically competitive market are incurring economic losses. What will happen to move the market to its long-run equilibrium?
A perfectly competitive firm faces a:
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