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Q1. State two economic principles of taxation and which principle best justifies the excise tax on gasoline, when the tax revenue is used to maintain or improve the roads? Which principle best justifies the progressive U.S. taxation profits of corporate? Clarify.
Q2. 1) "Unemployment is more important problem than price increases". This kind of statement is normative or positive?2) You are given a choice between two movie passes, dinner at a Red Lobster and a new book. What is your opportunity cost? Explain.
The following sets of statements contain common errors. Elucidate and identify each error.
Compare the effects of the two policies, based on the models developed. Why might the United States have preferred one policy over another.
Explain how does the price elasticity for flu vaccinations change in times when flu is more prevalent versus times when flu is less prevalen.
q1. the taxing agency in your state would like to impose a sales tax in a way that minimizes deadweight loss. to
Semi-Salt Industries began its operation in 1975 also remains the only industry in the world which produces also sells commercial-grade poly glutamate.
Describe the profit-maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company's profits.
Illustrate what does this mean for the survival of small firms in the industry.
the monopoly will experience a loss the monopoly will earn a profit the monopoly will earn zero profit consumers will be worse off than they would be if the firm's profit maximization activities were unregulated
Under very high rates of inflation, why would people prefer to use a barter system to buy goods, rather than use paper money.
How do prices, output, and profits differ between monopolies and monopolistically competitive firms.
What is the value of consumer surplus? What is the value of the deadweight loss created by this monopoly?
Which he can trade at the going prices. He has no other source of income. Illustrate what is Nick's gross demand for x.
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