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Which of the following do you think are good markets for the government to tax if the goal is to boost tax revenue? Which will lead to the least amount of deadweight loss? Why?
a. luxury yachts
b. alcohol
c. motor homes
d. cigarettes
e. gasoline
f. pizza
Recall the espresso machinecontribution game discussed in class. You and your roommate may by an espresso machine for $50. Your value for havingthe espresso machine is $40 and your value for not having it is zero.
Wealthier societies are also healthier ones because they h
A worker will be paid $3,000 if she gets at least 40 answers right and $2,500 otherwise. For either type, an hour of studying is as bad as giving up $20 income. What is the equilibrium of this scheme?
Suppose that the nominal rate of interest is 4 percent and the inflation premium is 2 percent. What is the real interest rate Alternatively, assume that the real interest rate is 1 percent and the nominal interest rate is 6 percent.
Consider the following data for the selling price at each stage in the production of a 5-pound bag of flour sold by your local grocer. Calculate the final market value of the flour.
If the industry producing Scruffs is purely competitive, what is the maximum benefit that an inventor of a process that will reduce the cost of producing Scruffs by $5 per unit can expect to receive by licensing her invention to the firms in the i..
Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situat..
Suppose that the government imposes a $2 a cup tax on coffee. What determines by how much Starbucks will raise its price? How will the quantity of coffee bought in coffee shops change? Will this tax raise much revenue?
Poisson Distribution (8 pts.) 911phone calls arrive at the rate of 30 per hour at the local call center. a. Find the probability of receiving more than two calls in a five-minute interval of time. b. Find the probability that the number of calls.
Ten bidders in an oral auction have the following values for an antique clock ($10, $9, $8, $7, $6, $5, $4, $3, $2, $1). If bidders of the $10 and $9 bids collude and bidders of the $3, $4, and $5 bids collude, what will the winning price be?
Nationwide Bank has approached Hometown Bank with a proposal to merge. The following table lists the sales of the banks in the area. Use this informatiojn to calculate the four firm consentration ration and the Herfindahl Hirschman index
how much will be in the account at the end of the 10-year period?
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