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Your employer allows you to purchase a parking permit with “pretax dollars” – that is, you don’t have to pay taxes on the money that you used to purchase this permit. Does allowing some people to purchase certain goods or services using pretax dollars increase or decrease equity in the U.S. tax system? Explain.
A production process exhibits economies of scale if:
Polaris Industries wishes to purchase a multiple-use-in-plant "road test" simulator that can be used for ATV's, motorcycles, and snowmobiles. The simulator takes digital data from relatively short drives on a desired surface and simulates the ride ov..
Which of the following is a rate that should theoretically serve as a floor for the Fed funds rate? A dealer is said to be running a "matched book" if. An increase in the supply of reserves in the banking system leads to an increase in the Fed funds ..
Why, as game theorists, do we want to obtain an interval measurement of preferences rather than an ordinal measurement? In particular, what does an interval measurement allow us to do that an ordinal measurement doesn’t? Are there any limitations on ..
Write down an individual’s optimization problem regarding consumption of good and bad behaviors using the Bellman equation representation of lifetime utility (as we did in class). Be sure to include the budget and time constraints and any constructs ..
If the U.S. and Japan trade different versions of cars and the U.S. enact trade barriers against Japanese car imports, what will happen to the level of Japan's horizontal foreign direct investment in the U.S.? Why?
Compute the percentage change in price and quantity (%ΔP, %ΔQd) by adding this one room. Calculate the Price Elasticity of Demand.
For each of the situations below use supply elasticity to explain the how the equilibrium price and quantity change. (a) The demand for collectable baseball cards from the 1950s increases. (b) The demand for silver decreases. (c) In the long run, the..
If expected inflation is constant and the nominal interest rate increased 5 percentage points, what would happen to the real interest rate?
Purpose of the business in terms of the product or service you intend to provide through your business
Why might European Monetary System provisions for the extension of central bank credits from strong-to weak-currency members have increased the stability of European Monetary System exchange rates?
Using graphical analysis for demand and supply, please show in two graphs how an improvement in the technology (such as using artificial intelligence programs for diagnosis/interpretations) would affect the healthcare market, an increase in mergers a..
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