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Suppose the government imposes an excise tax of $10 on a market. Suppose further that the price elasticity of demand for the good is 0.9 and the price elasticity of supply is 0.3. Everything else held constant, the sellers will bear _____ percent of the burden of the tax.
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Suppose option A has a higher variance than option B. Which of the following statements is, in general, true?
What might account for the fact that estimates of effect time lags for fiscal policy often differ considerably across different types of government expenditures?
Consider an economy in which two factors of production , (labor and capital), produce two goods, (capital intensive pharmaceuticals and labor-intensive clothing). Suppose that both factors of production are freely mobile across both industries andtha..
Consider the following information for a simultaneous move game: If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits.
As a postgraduate student of economics I've been trying to expand my mathematical "toolset". While doing so I've talked to engineers, physicists and mathematicians, many of which have disdained the use of mathematics in economics. Their arguments var..
In what industry will a given percentage increase in production workers result in the largest percentage increase in output.
As the baby boom generation begins to reach retirement age and the increase in the life expectancy in the US, people will be receiving Social Security payments for a longer period of time. In your opinion, what should the government do to handle this..
What factors might account for the increase in the earnings of college-educated workers vis-vis high school graduates and dropouts over the last three decades?
q.suppose a computer virus disables the nations automatic teller machines atm manufacture departure s from bank
Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day. If Pacifica produces only surf..
(a) If tuition is set at $3,000, how many students will enroll? Now suppose that society gets an external benefit of $1,000 for every enrolled student. (b) Draw the social and market demand curves for this situation on the graph below. (c) What is th..
Assume that a hypothetical economy with an MPC of 0.8 is experiencing boom with the gap of 25 billion between potential real GDP and actual real GDP. How much would the government spending have to cut to decrease real GDP to the potential real GDP le..
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