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Brunner and coauthors (2001) studied home ownership and median incomes in different California communities and their connection with voting on a proposal to promote school choice. At the time, students had to attend school in the district where they lived or else pay for private school. Under the proposal, students could obtain education at any private or public school that had room for them. If they left their own district, then that district would pay the student’s new school what the district would have received if the student had stayed there. If the private school cost more than that, the student would pay the difference. Note that public services such as education are partially capitalized in house prices. What does this fact suggest about the likely net benefits of the proposed plan for homeowners in high income communities compared to home owners in low income communities? What does it suggest about the likely net benefits of the proposed plan for home owners in high income communities compared to renters in those same communities? Explain
During the past year, gasoline prices have been very volatile. One reason given for at least some of the volatility is the threat of war between Israel and Iran. More recently, there has been a report of serious fire damage to Venezuela's largest ref..
Explain how are the gains from trade shared among the parties to a trade. Is it possible for specialization and trade to increase total output of traded goods.
Background info for question below: "For all problems consider a market containing four identical firms, each of which makes an identical product. The inverse demand for this product is P = 100?Q, where P is price and Q is aggregate output. For all ..
When a construction possibilities frontier is bowed out, away from the origin the opportunity cost of a good.
The GDP is a total market value of final goods and services produced within a country over time. Why is this a reflection of this country's cost of living so varied making expenditures.
The government modifies the consumption tax somewhat so that the first $20k of consumption in each period is tax free. Now graph the budget constraint.
adam smith rejected utility as a foundation for value. he illustrates this rejection in his famous diamonds and water
Assume a good where its equilibrium price is 40 and its equilibrium quantity is 3.0 units. Compute the supply surplus when price is 60. Take into consideration that the elasticity of supply is 1 and the elasticity of demand (-1)
Suppose the government increases spending by $30 billion and raises taxes at by $20 billion at the same time. Then, interest rates will most likely stay the same.
Assume Microsoft chooses to produce 80 million copies of the software per year and sells copies of the software to retailers at $199 per copy.
(Arbitrage) A supplier is selling hammers in two cities, Pleasantville and Happy Valley. It costs him $5.00 per hammer delivered in each city. Let p1 be the price of hammers in Pleasantville and p2 be the price of hammers in Happy Valley. Assuming th..
If incomes rise for both low-income and high-income workers, but rise less for the high-income workers.
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