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In the fall of 2005, the president's tax reform commission issued a final report. The commission called for a general cut in marginal tax rates; lower tax rates on dividends, capital gains, and interest income; and, more importantly, the expensing of investment in capital equipment. These provisions were argued to be "pro-growth." In what ways would you expect each of these proposals to be favorable to economic growth?
A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $2,000 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192
What is the optimal level of pollution P = 2P + P^2 => MC = 2 + 2P CC = 5 - 3P => MC = -3 to find the optimal level of pollution as recommended, we need to set total marginal cost = 0, then I have 2 + 2P -3 = 0 => 2P -1 = 0 => P = 0.5 You have alread..
You open a savings account to save for a new house. Everymonth you put $100 into a savings account which pays 5% interestcompounded monthly. At the end of each year you receive a $500bonus which you place directly into your "housefund".
What are the relationships between health and education, on the one hand, and productivity and incomes, on the other? What can government do to make health systems more equitable?
Discuss both the economics and the political economy of this viewpoint.
Mr. Midas has wealth of $100,000 that he invests entirely in money (a chequing account) and government bonds. He instructs his banker to invest $50,000 in bonds, plus $5,000 more in bonds for every percentage point that the interest rate on bonds ..
Prove that there does not exist a steady-state equilibrium.
In Sec. 6.2, we developed an Eq. (11-19) to determine the thickness of a lowvelocity horizontal layer. Derive a similar equation for a low-velocity layer with dipping angle i.
Plot the levels and first differences of lnrgdp and lnrstockval and briefly comment on the graphs and obtain and comment on the variance decompositions for 24 periods ahead based on the original ordering of the variables.
Mining is proposed for a wilderness area that provides two benefits: recreation (due to backpacking opportunities) and biodiversity (there are endangered wildlife and plants). The mining is expected to reduce backpacking visits from the current 10,..
The government collects $7 in taxes and spends $10 on locally-made goods. Firms borrow $7 and make $7 in domestic investment spending. The government and firms buy no imports what is Germany's current account balance
Why do they rise if the Fed engages in an open market purchase?
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