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Q. (a) A country recently passed food stamp legislation. Qualified households are given food stamps, which can be used to purchase foods, but they cannot legally re-sell the food stamps. Assume a household receives a grant of $500 of food stamps every month. How will this household's budget line be affected? (Hint: Consider two goods: food also other goods.)
(b) Show that if the food stamps could be legally re-sold, the welfare of the household would be increased. Give one reason why food stamps should not be re-sold.
For a typical firm producing 100 units of output, short-run marginal cost is constant at $65, average total cost is $95, and average fixed cost is $30.
What percent of the tax is borne by buyers. If income rises to $40,000, how much will tax revenue rise.
Elucidate exactly Illustrate what the government actually did and why this merger is not occurring.
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
how will Kristine s consumption pattern and welfare be affected
What is the difference between a production function and an quant. Explain the law of variable proportions with the help of quant.
How would equal educational achievement and equal income.
Determine the impact on the economy if the central bank in U.S. used inflation targeting.
Elucidate the price also quantity that maximizes the company's profit.
The president of your college believes that the cost of a college education is far too expensive for students to afford and has decided.
Explain the solution to the firm's cost-minimization difficulty ever occur off the iso-quant representing the required level of output.
A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
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