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It has been proposed that toll collection on the Massachusetts Turnpike, a key commuter route into Boston from the west, be discontinued. Proponents argue that tolls have long ago paid for the cost of building the road; now they just provide cash for tax bureaucracy. A number of economists are opposing the repeal of tolls on the grounds that they serve to internalize externalities. Explain this argument and discuss why the government often gets involved when finding solutions for externalities.
Elucidate the need for full disclosure in financial reporting. Identify possible consequences of failing to properly disclose certain items in financial statements.
The demand for coffee cakes is less than or equal to 4. Five pounds of flour and 2 pounds of sugar are required to make a pan of coffee cakes, and 5 pounds of flour and 4 pounds of sugar are required to make a pan of Danish pastries. A pan of coff..
A company finds there is a sudden increase in the demand for its product. In the short run, it must operate longer hours and pay higher overtime wage costs.
The industry financial performance had not be ideal last year and Jackson feared that taking this action would cause the financial statements to be even worse.
Let P = 53-Q be a consumer's long-run demand curve for gasoline, and P= 103-2Q be the consumer's short-run demand curve,
Illustrate the point price, income, also cross elasticities at the present values. Interpret your answers, saying how much a 1% change in each variable impacts demand.
A company has two plants with the following marginal cost functions: MC1 = 20 +2Q1, MC2 = 10 +5Q2 Where MC1 is marginal cost in 1st plant,
devaluation was comduct after the purchase and additional investment were completed, what is the new ROI.
Our currencies value vis a vis other currencies. Explain why did the US abandon the standard in the first place.
Illustrate the similar price elasticity of supply, sellers would be able to pass along the smalles portion of a 10%tax on which item.
Environmental Protection Agency (EPA) regulations tend to go through many stages of review and approval before they are implemented. Not only do many regulators have to approve a new regulation, but comments and reviews from industry and conservat..
The fear of unwanted price wars may explain why many firms are reluctant and suppose that a new machine tool having a useful life of only one year costs $80,000. Exam: 050474RR - MACROECONOMIC MODELS AND FISCAL POLICY
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