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Question: Both a payroll tax and an excise tax on alcohol raise revenue and, respectively, shrink the markets for labor and alcohol. Although both have some functions in common, governments may have different goals when levying them. What goals do you think motivate a payroll tax? What goals motivate an alcohol tax?
Explain why the coffee shop manager should measure elasticity using the mid-point method in his calculations.
The government can increase GDP in the short run by running a budget deficit. What are some long-term effects of deficit spending?
Suppose a friend comments to you, "I think welfare recipients are simply lazy spendthrifts. I have a friend who receives Temporary Assistance for Needy Families
Explain what distinguishes money from other assets in the economy. What are the positives and negatives of protectionist trade policies?
Illustrates your local electricity companys natural monopoly. The demand curve for kilowatt-hours of electricity, the company's marginal revenue curve, its marginal cost curve, and its average total cost curve.
the bank you own has the following balance sheet 2 pointsassets liabilitiesreserves 75 million deposits 500
Dexter's donut shop is able to increase its total revenue from $2000 to $2400, What is the price elasticity of demand for Dexter's donut shop
Find the inverse demand curve. How much consumer surplus do consumers receive when Px=$35? How much consumer surplus do consumers receive when Px=$25? In general, to the level of consumer surplus as the price as the price of a good falls?
Using the pre-1996 benefit-based criterion for drinking water standards, find the level of abatement that will maximize total social benefits (TSB).
if the price of the imported tv sets was 300.00 in the us.at the beginning of the year how much would you expect the
Fetzer valves can be made in either China or the United States, but because labor in the United States is more skilled, on average, than labor in China, the production technologies differ. Consider the two production isoquants in the figure.
Consider a public utility providing water service as a natural monopoly to residents of a city. The market (as defined by the city's boundaries) contains 100,000 identical customers, each of which has a demand function q(p) = 0.2875-80,000 whe..
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