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If it is the government's desire to raise quite a bit of tax revenue, why should it tax a product like gasoline or cigarettes instead of a product like yachts? Think about what tends to happen to the price of a product after it is taxed. Explain.
Suppose a country's government is concerned about growing inequality of incomes and wants to undertake a program that will increase the total earnings of the unskilled. Extending employer payroll taxes to all earnings over $117,000 per year and incre..
What is the key problem with measuring marginal q? Is there an alternative measurement that can be used instead? Is this alternative measurement likely to be an accurate proxy for marginal q?
Suppose that you are the manager of a pizzeria that produces pizza at a constant marginal cost of $6 per pizza. The pizzeria is a local monopoly near
In your estimation, what is the major contemporary challenge to the international system at this point in time? Be sure to explain why this particular challenge is more substantive than all other challenges.
Suppose the real interest rate is 3%, the real growth rate is 2%, the money multiplier is 4, banking innovations are decreasing the demand for money by 1% per year and the money supply is growing at 10% per year. What should be the price of a T-bill ..
Lets denote the price of a nonmaturing bond (called a consol) as Pb. The equation that indicates this price is Pb = l/r, where l is the annual income the bond generates and r is the nominal market interest rate. Suppose that the bond promises the hol..
Can you see any practical problems that might arise in following such a policy? How do your previous answers change in the special case where money demand does not depend on the expected rate of inflation?
In the U.S. health expenditures on drugs amount to about 10% of total health expenditures. In Japan, where physicians are legally permitted to sell pharmaceuticals, national expenditures on drugs are almost double the level in the U.S. Discuss how th..
A 20 year coupon bond with face value $100,000 and a 4% coupon rate has a yield to maturity i = 0.08. What is the value of the annual coupon payment? What is the price of this coupon bond?
Explain these four sources of unemployment and explain how each contributes to the current unemployment problem facing the US.
A kinked demand curve is most likely to occur when other firms. The difference between the price firms would be willing to accept for their goods and the price they actually receive is called. Under conditions of perfect competition, maximum profit o..
Percentage of underweight children number of countries
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