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A researcher found that when the capital gains tax rate declined, the average bequest size fell as well. How does the tax treatment of capital gains in the United States explain this relationship?
Panel B shows how the demand for X shifts when the price of related good Y increases from $60 to $68. Use the information in Panel B to calculate the cross-price elasticity. Are goods X and Y substitutes or complements?
You are a division manager at Toyota. If your marketing department estimates that the semi annual demand for the Highlander is Q=150,000-1.5P, what price should you charge in order to maximize revenues from sales of the Highlander?
Fifth Problem Earl sells lemonade in a competitive market on a busy street corner in Philadelphia. His production function is f(x1, x2) = x 1/3 1 x 1/3 2 , where output is measured in gallons, x1 is the number of pounds of lemons he uses, and x2 is t..
Instead of imposinga tariff, the government reached an agreement with foreign suppliers to "voluntarily" limit the portable radios they export to 1,250 per year. What is the deadweight loss resulting from this agreement?
q1. external and internal equilibria are often contradictory goals and the policy-maker is forced to choose between one
Use the money market and FX diagrams to answer the following questions about the relation- ship between the euro and US dollar. We would consider how a change in the U.S. money supply affects interest rates and exchange rates. Suppose that US tempora..
The root cause of most mass starvation is a lack of food production. Most mass starvation have been intentional. Mass starvation is less likely in democracies. Greater political competition is associated with higher levels of food distribution.
At what price is the price elasticity of demand equal to zero? When the price elasticity of demand is equal to 1, what will be the quantity demanded at this point?
Graph and label the Lorenz curve for a country in which 1/4 of the population earns 3/4 of the income, 1/2 of the population earns 1/10 of the income and 1/4 of the population earns 3/20 of the income. Assume that every individual within each class h..
explain why a $100 billion increase in govermant purchases of goods and services will lead to a large increase in aggregate deamnd than a $100 billion decrease in taxes?
Suppose 2 television stations are offered 2 old Hollywood films: Casablanca and Son of Godzilla. The stations' willingness-to-pay for each is as follows: Station A WTP: Casablanca $8,000 Godzilla $2,500 Station B WTP: Casablanca $7,000 Godzilla $3000..
You have $1,000, which you can invest in a risk-free investment, earning 2% with certainty. Alternatively, you can invest in a project that has a 30% chance of losing $500, and a 70% chance of gaining $400. What is your expected wealth with each inve..
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