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After learning about market failures, George states: "Any time the market outcome is Pareto inefficient, government intervention can make everyone better off, at least in principle." Do you agree? Why, or why not? Would you agree with a qualified version of George's claim? If so, what qualifications would you add?
Suppose households supply 430 billion hours of labor per year and have a tax elasticity of supply of 0.20. If the tax rate is increased by 10 percent, by how many hours will the supply of labor decline
"We should impose a 20 percent luxury tax on expensive automobiles (those with a sales price of $50,000 or more) in order to collect more tax revenue from the wealthy." Will the burden of the proposed tax fall primarily on the wealthy Why or why n..
In a competitive market, the market-determined price is $25. For a typical firm producing 10,000 units of output, the firm's average cost reaches its minimum value of $25. Is this firm making the profit-maximizing decision.
Consider a competitive market served by many domestic and foreign firms. The domestic demand for thse firms' product is \(Q^{4} = 500 -1.5P\) The supply function of the domestic furms is \(Q^{SD} = 50 + 0.5P\) while that of foreign firms is \(Q^{S..
Discuss possible short-run and long run movements of the market and the consequences for your company.
Third National Bank is fully loaned up with reserves of $30,000 and demand deposits equal to $100,000. The reserve ratio is 5%. Households deposit $20,000 in currency into the bank. How much excess reserves does the bank now have.
s how would this merger affect airline costs
An engineer and her husband operate a pet sitting service on the side. They want to add a daily service of a photo placed online for pet owners who are traveling. The estimates are: equipment and setup cost $600
A delivery company is considering adding another vehicle to its delivery fleet, all the vehicles of which are rented for $100 per day. Assume that the additional vehicle would be capable of delivering 1500 packages per day.
When you were born, your grandfather established a trust fund for you in the cayman islands. The account has been earning interest at the rate of 10% per year. If this account will be worth $100,0000 on your 25th birthday, how much did your grandf..
A man buys a corporate bond from a bond brokerage house for $925. The bond has a face value of $1000 and pays 4% of its face value each year. If the bond will be paid off at the end of 10 years, what rate return will the man receive
Country A has 26400 units of labor and can produce 2 goods, manufactures and food. A's producers take 2 units of labor to produce one unit of manufactures and 5 units to produce one unit of food. Country B has 35000 units of labor and takes 7 unit..
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