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"We should impose a 20 percent luxury tax on expensive automobiles (those with a sales price of $50,000 or more) in order to collect more tax revenue from the wealthy." Will the burden of the proposed tax fall primarily on the wealthy? Why or why not?
Consider the following Specific Factors model. Suppose two countries, Home and Foreign, produce two goods, timber and televisions. Assume that land is specific to timber, capital is specific to televisions, and labor is free to move between the two i..
For each of the following, indicate if the person would be classified as employed, unemployed, or not in the labour force and why: (i) a 65-year-old man.
Compared to their levels in 2003, the poverty line has ________ and the minimum hourly wage has ________.
Suppose that two people, Mary and John each live alone in an isolated region. They each have the same resources available, and they grow corn and raise pigs.
The demand function is given by p(y) = 140 - y/3. What is the level of output that will maximize profit?
Major soft drink companies have begun to phase out their previous system of marketing their product through independent bottlers and moved toward company-owned distribution systems. One issue is the coordination of pricing and marketing in the two ty..
Suppose that country A is now at steady state. There is a one-time increase in population. All other factors are unchanged. Illustrate in the diagram how the country will move toward the steady state. Suppose that technology of country B improves, bu..
Consider the Classical model. Which of the following situations/shocks would generate higher real wages and less labor?
Could not Ethiopia become a world class producer and exporter of goods? How would Ethiopia compare with Japan? Japan is a country relatively POOR in natural resources, yet it is an economic world powerhouse. What are the differences between the tw..
Research any two publicly traded companies, looking for one that has an attractive price earnings ratio and one that has an unfavorable price earnings ratio. Explain how you knew the price earnings ratio was attractive and unfavorable.
Explain the differences between typical demand side fiscal policy and supply side fiscal policy. For each of the following fiscal policy proposals, determine whether the primary focus is on aggregate demand or aggregate supply or both.
Marginal utility and MRS and budget constrain, what is their relationship?
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