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In early 2010, the U.S. government offered an $8,000 subsidy to new homebuyers. What effect does a perhouse subsidy have on the equilibrium price and quantity of the housing market? What is the incidence of the subsidy on buyers? Hint: A subsidy is a negative tax.
Are classes supplied through "a market" similar to what has been described in this chapter?
U(C,1-L)=4C2/3(1-L)1/3, where C is the amount of consumption and L is the number of hours worked. If the price for consumption is $9, the wage rate per hour is $6, initially the consumer had $162 and 24 hours as time endowment
For the same loan described under Q3, the individual decides that instead of selling the house after the 71st payment, to keep it and shorten the pay off period by increasing the montly payment by $150 each month. What is the number of months re..
A machine has an initial cost of $500,000, and was estimated to have a salvage value of $30,000 at the end of its 7 years useful life. The machine is expected to generate annual net savings of $125,000. A loan of $200,000 at 7% interest will help ..
Bakka Bee, a construction firm in Toronto Canada. They are a firm with 200 employees in five countries. One of their divisions - in Peru - has encountered difficulties and may have to be liquidated. The company uses computers for everything from d..
What are the exogenous variables in the two equations above? what are the endogenous variables
Briefly summarize and describe how the economic theories and principles you have studied in this course have deepened your thinking about economic behavior
U.S. Nominal GDP for the year 2010 was $14,658 billion, whereas in 2000 it was $9,951 billion. The GDP deflator for 2000 (2010) was 88 (111) using 2005 as a base year. Using the compound growth formula xt+n = xt(1 + g)^n
identify which of these could represent a demand function and which a supply function.
Under what circumstances would the net welfare loss from an import quota exceed the net welfare loss from an equivalent tariff (one that results in the same price and import level as the quota)?
Compute the new equilibrium.
Isabella buys a $1,000 bond that matures in 10 years (that is, she lends $1,000 to the U.S. Treasury for 10 years). The bond pays her $50 every year for 10 years. When the bond matures at year 10, she will receive her $1,000 back.
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