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Recent tax reforms make college tuition partially tax deductible for certain families. This should motivate more people to attend college. How will this higher demand for a college education affect tuition prices? how will it affect the cost of the tax deduction?
Abby consumes only apples. In year 1, red apples cost $1 each, green apples cost $2 each, and Abby buys only 10 red apples. In year 2, red apples cost $2, green apple costs $1, and Abby buys only 10 green apples.
According to Gerald Baker, columnist for London Financial Times, November 23, 1999, "In the US, banks are, by whichever measure chosen, in unusually good shape for this stage of an expansion.
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
What are the firm's fixed costs? What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10.
3.Should the Fed remain independent from political authority or should the President and Congress have a say in their operations Why Why not 4.What is FOMC What is the current Federal Funds Rate
Now suppose that Charles Home improvement, when the disposal cost of old water heaters is included, has exactly the same average and marginal cost curves for installing replacement water heaters as does ABC water heater.
Explain how much of input 2 does it use. Illustrate what is the most that it is willing to bribe an inspector to allow it to use another unit of input 1.
Compute the optimal price using the arc formula for elasticity. How does the arc formula for elasticity factor in to these equations.
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
When calculating GDP, describe the significance of each component in the expenditure approach How does GNP differ from GDP Is GDP a reliable economic indicator to predict the changes in the business cycle
Classify each of the following as either an operating target or an intermediate target, and explain why.
What are the consequences of having a fiscal policy that is not sustainable?
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