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It is often asserted that gasoline taxes used to finance highway construction and maintenance are fair because they make users of roads pay for them. Who do you think bears the burden of such taxes?
What single sum of money at t=6 is equivalent to the following cash flow profile if i=10%? N cash flow 1 -400 2 100 3 100 4 100 5 0..
If nominal GDP is $4,000 billion and the amount of money demanded for transactions purposes is $800 billion, it can generally be concluded that: The asset demand for money will be $3,200 billion The total demand for money will be $4,800 billion On..
Using the same microeconomic concept chosen above, explain how it would be applied to the firm where you work or the type of firm you hope to work for in the future. What does this imply about this firm's future?
If a corporation operates in a highly competitive industry and competes against many other companies. In the last some years, many new companies have entered the industry and firm now earns a return on investment very close to prevailing interest rat..
Two investments have the following expected returns(net present values) and standard deviation of return. Product A Expected return$50,000 Standard deviation $40,000 Product B Expected return $250,000 Standard deviation $125,00.
Does this indicate anything about the attractiveness of American investments to citizens of other countries?
Compared to the prices if $30 and $25, what can you say about the marginal valuation that consumers place on the 300th shirt , the 700th shirt and the 1200th shirt they might buy each year. With diminishing marginal utility, are consumers deriving ..
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Ethel and Fred have found their "dream house" and it has a purchase price of $250,000. Assume that they make a $50,000 down payment but must finance the remainder with a mortgage. They are presented with two mortgage options. Option 1 is a 30-year..
Suppose all wages, salaries, welfare benefits, and other sources of income were indexed to inflation. Would inflation still be considered a problem? Why or why not?
Consider a two-onsumer exchange economy. Consumer 1 and 2 have utility functions: U1(x, y) = x2/3y1/3 U2(x, y) = x1/2y1/2Initial endowment e1=(18,7) (It means consumer 1 has 18 units of x and 7 units of y initially), e2=(15,16).
ADVANCED ANALYSIS Currently, at a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $1 to $2 is unit-elastic (Es = 1.0). So how many p..
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