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1. In a society in which households differ significantly in income, two processes occur simultaneously that affect where households live: the Tiebout process and the separation process. Explain each.
2. Using a diagram, explain what happens to the price of homes if a property tax is levied and the local government (A) completely wastes the revenue and (B) uses the revenue to provide good quality schools, police, and fire protection.
3. Compare a private school system to a public school system.
4. Use a diagram to explain the optimal quality of a public school and how taxes can be set so that there is unanimous support for this quality from its citizens.
5. Explain how the EITC works and how it differs from welfare.
6. Explain why government borrowing shifts the burden from present taxpayers to future taxpayers.
Consider a perfectly competitive industry. Market demand is P=500-2Q and all firms are identical. Find the market’s long-run equilibrium price. Show that the firm's profit is zero at this price. c. If all firms are identical, then how many firms is c..
The company's engineer estimated that the production of the new product has a 88% learning curve applied to labor required, and the time to complete the first unit was 54 labor hours. Assume the time required to complete the 10th unit and the competi..
the area of the coil is perpendicular to the magnetic field lines, what is the resulting average emf induced in the coil? Any help is appreciated!
A tariff is a tax on imports. Use the model of the excise tax to explain why domestic firms ask their government to "protect" them with a tariff. Consider the winners and losers from the tariff. Why do economists tend to think that tariffs are a bad ..
Do developing countries have other alternatives to the sources of technological progress you mentioned in the question above? Explain your answer. Do you see any reasons developing countries may choose to have poor patent protection? Are there any da..
Examine the case for strong regulation in the freight market.
As an owner of a visible U.S. business that is valued in the community, you are making a final decision regarding the international aspects of a business decision, and you decide to set up a table with various risks.
In the following cases, explain what happens to demand or quantity demanded and how the change would be shown on a graph of the demand schedule. Assuming that tickets to an NFL game are normal goods, what is the effect of an increase in the incomes ..
What are the factors determining the nominal interest rates. The real risk-free interest rate is determined in the loanable funds market by supply and demand for real loanable funds. What 4 changes (?) would shift the supply of real loanable funds..
Ohm Control Systems is a large manufacturer of control systems for the electrical power generation and distribution industry. Over the past few years, Ohm has watched overseas competitors take away market share with products that are priced lower and..
Defend your use of either monetary policy or fiscal policy to do this.
Using your answers above, why does the growth rate of real GDP differ depending on the base year? Explain how the technique of Chain-Weighted Real GDP alleviates this problem.
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