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What is the effect of a $1 specific tax on equilibrium price and quantity if demand is perfectly elastic and supply is perfectly inelastic? What is the incidence on consumers? Explain.
In the derivation of the Solow growth model, we assumed that government spending and taxes less transfers were both zero. Relax that assumption and assume that both are constant graction of GDP, say T = G = gammaY. What is the steady state level o..
A student is taking two courses, history & math. The probability the student will pass in the history course is .60 and math is .70. The probability of passing both is .50.
Show that for an odd number of voters and a given preference profile over a fixed number of alternatives, an alternative is a Condorcet winner if and only if it emerges as the social choice in sequential pairwise voting with a fixed agenda, no mat..
Determine when a competitively produced product generates negative externalities in production, the industry will,
a. If the price of capital is $7.50 per unit what is the per unit price of labor b. How many units of labor should the firm use in order to produce 400 units of output at the least cost c. The minimum cost of producing 800 units of output is what
Janequit her job at IBM where she earned $50,000 a year. Shecashed in $50,000 in corporate bonds that earned 10% interestannually to buy a mini-bus. Jane has decided to buy themini-bus and set up a commuter service between Lincoln and Omaha.
Armed with these considerations, evaluate this proposal in terms of the criteria in both this chapter and Chapter 11.
Find the demand and revenue schedules.
You have purchased equipment costing $20,000. The equipment will be used for two years, and at the end of two years, its salvage value is expected to be $10,000. The equipment will be used 6,000 hours the first year and 8,000 hours the second year..
Is the compressive strength going to increase? What about the elastic modulus? Please justify your answer.
In the diagram for this exercise, sketch a line representing a long-run aggregate supply at $10 trillion. Illustrate the effect of an increase in long-run aggregate supply. Then illustrate the effect of a decrease in long-run aggregate supply.
An individual wishes to deposit an amount of money now and $100 every six months so that at the end of five years $1,500 will have been accumulated. With interest at 3.97% per year, compounded monthly, how much should be deposited now?
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