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When fringe benefits such as health insurance are not taxed, which of the following does not happen? a. The equilibrium wage rises slightly. b. The government loses revenue. c. The value to the employee of the fringe benefit may be less than its price, and the employer will still want to provide it. d. Moral hazard problems worsen as the tax advantage leads to higher levels of insurance coverage .
Explain how much government securities should be purchased/sold if an open market operation is undertaken
Since a firm that is a perfect competitor in both the labor market and the final product market has hired the optimal amount of labor where the value of marginal product equals the wage, if the price of the product the firm sells doubles, will the wa..
In the 1990s, U.S. wine producers "were encouraged by the changing social role of their product." Specifically, the U.S. consumer had become much more attuned to wine. How did the growing acceptance of wine by consumers affect their indifference curv..
Consider an economy with five assets: 1) Cash 2) Checking Accounts 3) Savings and Money-Market Accounts 4) Bonds 5) Stocks. M1 includes asset classes 1 and 2, and M2 is the sum of M1 and asset class 3. All else being equal, how would each of the foll..
Calculate cost elasticity of demand for paint and show your calculations. Decide where demand for paint is elastic, unitary elastic, or inelastic.
Assume that in 2007 the U.S. Government issued a debt security with a purpose of consolidating all of the federal national debt. At the time of the issue, each security was priced at $15,000 and promised to pay 10% coupon rate indefinitely, just as i..
An individual's desire to create a new business is referred to as. What's organization created by Congress in 1. 9. 5. 3. Assist , councils, and protects the interests of small businesses. Primary demand advertising is
While negotiating the future amount, Wylie notes that he would be willing to take no less than $5,700 if he has to wait a year. What is his TVOM in percent?
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Advertising is powerfull strategy to make people aware about company products and services and for this case is to emphasize reliability and low price, this effort will help the company to sustain in this area and to develop a customer franchise a..
Suppose we are at steady state in the Solow Model. Suddenly we have a significant technological advance. Show, using properly labeled graph(s), how this improvement in technology affects the steady state levels of income per worker, consumption per w..
The U.S. money supply (M1) at the beginning of 2000 was $1,148 billion broken down as follows: $523 billion in currency, $8 billion in traveler's checks, and $616 billion in checking deposits. Suppose the Fed decide to reduce the money supply by incr..
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