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There is a pre-tax price of 5 cents per ounce on sugary beverages and they are imposing an excise tax of 1 cent an ounce. The per capita consumption is 100 ounces. Price elasticity is -1.2. What is the post tax per capita consumption?
Assuming both types of taxes collect the same number of dollars, a wage tax is preferable to a head tax. For a “normal” good, the income and substitution effects are not opposing forces. That is, for a “normal” good, the substitution and income effec..
A recent report on GDP growth rates showed that the GDP of Dorada, a developed economy, has declined by 1.5 percent this year. Emily George and her friend Tabitha Jude, both students of economics, are discussing the possible reasons for the decline i..
Classify each of the following as debits or credits in the U.S. balance of payments. Americans buy chocolate from the Swiss. U.S. What will happen to a country that fixes the price of foreign exchange below equilibrium?
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..
1. Would you continue to work for a company if you disagreed with the firm's system development mission statement? Why or Why not?
Consider a closed economy. Assume that goods prices are fixed in the short-run and that firms produce whatever they need to meet demand. Assume that money demand is negatively related to the nominal interest rate and positively related to the level o..
Illustrate what is the highest possible beta approximate for the project before its NPV becomes negative.
Today, most of our monetary transactions are done with plastic or via bank apps, all of which are easily tracked. Even craft vendors at small town festivals use apps on their smart phones and tablets to accept cashless payments. What behaviors would ..
What is the basic objective of monetary policy? what are the major strengths of monetary policy? give an example or two of recent monetary policy actions and it's impact on the economy.
Respond to the following questions: Many would argue that in a capitalistic economy, the government cannot provide goods and services as efficiently as the private sector. For example, most arguments for and against the Affordable Health Care Act cen..
Potential mobility of the tax base is an important issue in state-local taxation and international taxation. Explain how this may impact decision-making in regard to tax policy. Consider a market with demand and supply functions explained by: Qd = ..
Suppose for a moment that someone with legislative power decides to abolish Fractional Reserve Banking and passes a law that forces banks to only lend the money they own, that is M0. What would be the economy-wise implications of such a change in the..
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