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You are an aide for the Senate Banking Committee Chairman. He comes to you with a bill that proposes setting limits on what ATM owners can charge non account holders, over and above what banks charge their own customers. Currently, large banks charge noncustomers an average fee of $1.35 per transaction in addition to the fees the customer’s own bank imposes. The Senator asks you to look at a proposal that would place a $0.50 cap on the fees ATM owners can charge noncustomer for accessing their money. If this legislation is enacted, what would be the likely effects?
Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Create a graph that shows how the payments are divided between interest and princip..
What assumption along with diminishing marginal product implies diminishing marginal rate of technical substitution?
Certain environmental laws prohibit EPA from considering the costs of meeting various standards when the levels of the standards are set. Is this a good example of “putting first things first” or simply an unjustifiable waste of resources? Why?
The current government deficit: include how current fiscal policy has affected the deficit, and how the country should deal with any problems you identified?
Some airline executives have called for "re-reregulation." Why might an executive of an airline prefer to operate in a regulated environment?
Henry initially consumes the quantity of pens and pencils shown as B in figure 2. After the prices of both goods change, he buys combination A. From figure 2 and these facts, it must be true that . . .
Evaluate each of these three options in the context of the economic concepts and business strategies we have learned in the course and explain how you would deal with this situation - Is this consistent with profit-maximization? Given the current h..
Budweiser, Miller and Coors, together with their subsidiary brands and foreign corporate partner brands produce 80% of all beer consumed in the US. Each spends well over $600 million a year on television advertising campaigns, promoting their beer br..
Suppose a firm faces the inverse demand curve P = 600Q– 0.5. The firm has the total cost curve TC = 1,000 + 0.5Q1.5. Find the firm’s profit- maximizing output, price, and profit.
What empirical method generally is used to measure the degree to which products substitute for each other?
Suppose in Fiscalville there is a 5 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 25 percent tax on income between $20,000 and $30,000. Determine your marginal tax rate. Determine your ..
q.evaluate the role and the effectiveness of the federal reserve in stabilizing the current economy.determine which
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