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What is your preferred use of the two fiscal tools (Tax or Spending) to resolve gaps? In your opinion who should receive the benefit or bear the cost of your fiscal tool(s)? Be specific.
Adam Smith favors a policy of laissez faire in managing economic activities. Why? Economics deals with the efficient use of resources? Why? Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?
Suppose that in an economy, net taxes and governemnt spending are independent of income. It is determined that when government spending falls by $200 billion income falls by $800 billion. What is the MPS? What is the MPC?
Imagine that it is the year 2199. Technology has progressed at an incredible pace. The latest discovery is the plutonium engine, which is capable of converting plutonium, a by-product of nuclear fission, into fuel to power the nuclear reactors in our..
For a repayment schedule that starts at EOY three at $Z and proceeds for years 3 through 8 at $2Z, $3Z,..., what is the value of Z if the principal of this loan is $10,200 and the interest rate is 9% per year? Use a uniform gradient amount (G) in you..
About 32% of all the laptop computers sold in an electronics store have hard disks made by Western Digital, i.e., equation. In a specific shipment, a total of equation laptop computers are received. Treat these 15 laptop computers as a random sample ..
In the international environment, it is apparent that China is making large investments in the global financial markets in their shift away from exports. Is there a connection between China's exports and its financial investments in other countries?
According to Trabant and Uhlig (2009), the Laffer curve for consumption has no peak. As far as I can make out, the argument is based on the fact that money extracted by taxing consumption ends up back with consumers and then gets taxed again. However..
The term dI/dY relates to the investment multiplier, while the term dY/dI has to do with whether investment is a function of the level of income. (Note: interpret the "d" to represent "delta" or "change in.") True False
In her economics course, Nancy has two exams. Her overall score for the course will be the maximum of her scores on the two exams. Nancy decides to spend a total of 400 minutes studying for these exams. On a graph with x1 on the horizontal axis and x..
An injection molder is purchased for $500,000 for a large scale commercial operation. Its expected life is production of 2 million plastic wheels. Its salvage value is $1,000. Using the units of production method, calculate the depreciation rate per ..
Suppose in Fiscalville there is a 0 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 45 percent. ..
What is the least you would be willing to accept to sell your house? c. Why are the answers to the above two questions different?
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