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(Stern 1976) The numerical analysis of income taxation has often assumed that the skill distribution is identical to the income distribution. This need not be the case. Assume that the utility function is defined as
a. Provide an interpretation of this utility function.
b. Assume that the skill level of all consumers is strictly positive. What will be the observed distribution of income?
c. Will this distribution be identical to the skill distribution?
d. Comment on the practice of assuming that the income and skill distributions are identical.
The cost of extending a certain road is $850,000. Resurfacing and other maintenance are expected to cost $175,000 every 3 years and lasts for 96 years. What is the present worth of the road at an interest rate of 6% per year (over that period)
The revenue R, in dollars, derived from selling x computers is given by R = -3x2 + 600x + 1000
an automobile -manufacturing company is considering purchasing an industrial robot to do spot welding , which is currently done by skilled labor . the initial cost of the robot is $210,000, and the annual labor savings are projected to be $150,000
if two people have cardinal utility functions person1 is utility xy and person2 is utility xy13 which bundle would
Suppose that the reserve requirement is 3 percent on the first $30 million of checkable deposits and 10 percent on checkable deposits in excess of $30 million. (Amounts on the balance sheet are in millions of dollars.) Assets Reserves $15.90 Loans..
An automated assembly line is set to fill a small bottle with 9.0 grams of cough syrup. What is your decision regarding the null hypothesis? Why
Find the general equilibrium values of the real interest rate, consumption, investment, and the price level.(b)Suppose the money supply increases to 2800. Find the general equilibrium values of the real interest rate, consumption, investment, and t..
An engineer deposits $300 per month into a savings account thatpays interest at a rate of 6% per year, compounded semiannually. How much will be in theaccount at the end of 15 years
What do you think? How would these considerations affect the exchange rate and output effects of fiscal policy? Do you see any parallels with this chapter's discussion of the longer-run impact of current account imbalances?
If emission standards are ruled out because of, for example, the impossibility of measuring emissions (as in nonpoint-source emissions), what alternative types of standards might be used instead?
A few years ago, the Boston Globe reported that the city of Boston planned to spend $14 million to convert the FleetCenter sports arena and entertainment center into an appropriate venue for the Democratic Nominating Convention (DNC).
how has the world wide allowed supported the establishment
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