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Question: Why does the way government achieves deficit reduction make a difference for economic growth?
a Assuming that the government raises taxes on interest income, what is the total impact on national savings, taking into account both deficit reduction and changes in private savings? What is the impact on investment?
b Assuming that the government raises taxes on wage income, what is the impact on GDP in the short run? What is the impact on the deficit and on investment?
c Assume that the government reduces expenditures on investments in technology and education, which yield a return of 15 percent, while the marginal return on private investment is 7 percent. What is the impact on growth?
1. What is the break-even point for the Falcon Corporation? 2. At 300,000 bird houses, what is the projected profit? Prepare an income statement ro prove your answer.
Discuss the characteristics of a perfectly competitive firm. Does your franchise firm share any of these same traits? Explain.
Some of the Tennessee Valley Authority’s electricity generating plants are powered by coal purchased via a separate TVA procurement division. Power plant managers often complain that the coal is below grade and causes problems with plant maintenance ..
Critical Thinking: Last year Congress passed a bill creating a new national health care system that is not yet fully explained. What principles of economics relate to this decision Describe how each relates and what issues must we consider.
There is a fruit seller who has 30 Kgs of apples to be sold and he wants to fix a price so that all the apples are sold. There are three customers in the market and their individual demand functions are given below:
Consider a monopoly where the demand is given by Q = 25 - .5P, Total costs for this monopolist are estimated to be C(Q) = 100 + 2Q + Q2. What is the profit – maximizing output? What is the monopoly profit?
the following cobb-douglas production function is used to describe the output generated by a local government
"No firm is completely sheltered from rivals; all firms compete for consumer dollars. If that is so, then pure monopoly does not exist." Do you agree. How might you use concept of cross elasticity of demand to judge whether monopoly exists
consider a market where supply and demand are given by qxs -10 px and qxd 56 - 2px. suppose the government imposes a
Build your cost model but calculate labor, equipment depreciation, material, and facility costs separately. Then provide a total cost summary.
If the ABC company owns the exclusive rights to mine land in Afghanistan for Lapis Lazuli, a rare stone used in jewelry which is found only in Afghanistan, the company benefits from a barrier to entry.
In our study of inter temporal utility maximization, everything (initial and ending wealth, interest rate, and consumption) in the budget constraint is expressed in real terms.
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