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In a model where a continuum of individuals have preferences for consumption and leisure as follows
wi = ci + ln(xi)
and individuals differ in their labour endowments ei, suppose two candidates run for office and offer a platform of imposing a proportional tax rate τ to finance lump sum transfers uniformly to all the population.
Where the planner maximizes the average individual's welfare. Are taxes higher or lower at the median voter solution? Why?
What is Employment and Unemployment? Employment and Unemployment: Employment: It is the number of people working within the economy. Unemployment: It is the nu
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what microevrionmental factors have affected Sony''s performance since 2000
difference b/w statistics in singular and plural sense
In the absence of taxes, subsidies or other distortions, the market demand and supply for bags of cement would be given by Q D = 1500 - 10P and Q S = 140P, respectively, where Q
What are the similarities among the developing economies? Common characteristics of LDCs (Less Developed Countries) include: • Low living standards (that is low real income
Assume that the per capita income in Alfaland (with initial high per capita income) is growing quicker than it is in Betaland (with initial low per capita income). Then: the gap in
Explain the discounting principle. Using the discounting principle calculate the present value of an annuity of five years at Rs. 500 payments made at the end of each of the next f
What are the constraints facing governments in the promotion of development? The constraints facing governments into the promotion of development: The capability of a govern
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