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Many states give companies with an investment tax credit that effectively decrease the value of capital. In theory these credits are designed to stimulate new investment and thus create jobs. Critics have argued that if there are strong factor substitution effects, these subsides can reduce employment in the state. Describe their argument.
Technological advance, that date has played a relatively small role in U.S. economic growth.
At the same time dozens of low price producers started growing plants for sale. The net result was a decline in the average price of houseplants.
Given below is a table with total information for a firm in a perfectly competitive industry.
Assume your bank increase its minimum-balance requirement for free checking on checking accounts by $500. You take $500 out of your passbook savings account
Suppose a monopolist with cost function C (Q) = 3Q selling to 2 segments of consumers where Q is total output produced by the monopolist in both markets. If the monopolist can use a single two-part tariff, compute the two part tariff that will maxim..
What is the equilibrium level of income? Compute disposable income, consumption and aggregate demand.
Discuss three automatic expenditures in the federal budget. What is the difference between discretionary fiscal policy and automatic stabilizers?
An internal study at Mimeo, revealed that much of its workers assembles 3 copiers per hour and is paid $3 for every assembled.
During the Kennedy administration and Reagan administration Congress decreased tax rates on individuals. Determine the effect of these rate reductions on revenue flow into federal treasury?
Illustrate what performance percentage would you use to trigger executive bonuses for that year. Explain why. What issues would arise with the hiring and retaining the best managers.
Suppose that corn production requires only land and can production requires only labor.
What would he buy the health insurance at a premium cost of $1,500? Why or why not. What implications can be drawn from the analysis.
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