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Taxes to reduce teenage smoking? Many researchers believe the falling price of cigarettes during the mid-1990s caused an increase in teenage smoking, whereas price hikes during the late 1990s led to a reduction in teenage smoking. Many economists believe the impact of rising and falling prices depends on the price elasticity of demand for cigarettes by teenagers. Question: Should taxes be used to raise the price of cigarettes as a way to reduce teenage smoking? Identify the pros and cons of your answer.
Describe a situation in which autocorrelation might be present and which of the three methods of detecting autocorrelation you would leverage. Explain your rationale. Describe what remedial measure you would take to address autocorrelation if it were..
Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal is -0.4. If the government imposes a binding price ceiling for coal at a price that is 20 percent below the market equilibrium price, what is the impact of..
One year ago you purchased a two-year bond at a discount for $900. It has a par value of $1000 and one year left until maturity. You have one interest payment of $50 at maturity. If the interest rate is 5% per year, what would be the capital gain or ..
Describe a pricing decision your company has made. Was it optimal? If not, why not? How would you adjust the price? Compute the profit consequences of the change.
Examine your opinion on the death penalty. Defend why you are for the death penalty or against it. Be sure to be specific in your defense on your stance.
Suppose your retirement account has a balance today of $25000 and you are 20 years old. If you are invested in a diversified portfolio of stocks, you might hope that the historical return of about 6% continues into the future. Plot your retirement ac..
Today we see a lot of activity within the international trade arena as the U.S. trade deficit has soared to a record high. Trade is designed to create bigger market opportunities, so why is the balance of trade so out of balance for the U.S.? Is it b..
q1. compare and contrast the way classical and keynesian theory determine the demand for money and how it is related to
If the US economy is operating near full employment and the exchange rate increases (the dollar appreciates), explain why the Federal Reserve will be less inclined to raise interest rates
The market for paper in a particular region in the United States is characterized by the following demand and supply curves: Calculate the output and price of paper if it is produced under competitive con- ditions and no attempt is made to monitor or..
Suppose the parameters of the IS curve are a = 0, b= 3/4, r = 3% and the real interest rate is initially R = 3%. Explain what happens to short-run output in each of the following scenarios (consider each separately). Be sure to provide a numerical re..
You work for a hotel chain that is considering expanding into international markets and you are looking for the right person to help oversee that process. You identify a top employee at another firm who seems to have exactly the skill set needed to h..
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