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Explain why excise taxes are more effective at raising tax revenues when applied to products with price inelastic demand versus ones with price elastic demand. Under what conditions would it be possible for tax revenues to decline with higher excise taxes?
A firm that has the long-run cost curves shown in the graph above would be able to do or have the following, except:
You are organizing a rock concert to benefit Amnesty International. The concert is to be held in a football stadium that has a seating capacity of 56,000. There are two types of seating: reserved and general.
What would an increase in government purchases do to aggregate demand? When would an increase in government purchases be an appropriate countercyclical fiscal policy? If the current budget shows a deficit, what would an increase in taxes do to it?
What is the effect of an increase in the investment rate on the level of steady-state output per worker in the Solow model? What is the effect of an increase in the investment rate on the growth rate of output per worker in the model? Illustrate and ..
Who benefits from a tariff or quota. Who loses. Illustrate what are positives and negatives of protectionist trade policies on federal government's part. Which policy is best right now.
Constrained Optimization in Economics 2. Minimize costs for a firm with a cost function Subject to the production quota
As control variables, Quinn's data also includes income the individual earned in the month the data was collected, and the amount that it rained in the month the data was collected.
consider a country described by the one-country model in section suppose that the country temporarily raises its levels
What are some of the situations that can give rise to monopolies? Research the industrial revolution and the Robber Barons (such as Carnegie and Rockefeller), of that era and comment on how they were able to create their monopolies. How are we able t..
The law of supply states that, holding all else constant, as the price of a good increases:
Suppose there is a decline in marginal costs for one member of a cartel. What impact will this have on the incentive of that firm to cheat on the cartel agreement? Explain.
You have $1000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (a) a sequence of three one year bonds (b) a three year bond or (c) a two year bond followed by a one year bond. Compute the retur..
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