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Consider a closed economy. The profits of private corporations constitute a fraction αof national income. These profits are subject to corporate tax and a fraction β of the net profits is distributed to owners. The remaining profits are invested in theeconomy. To encourage investment, the government proposes to cut the corporation tax. The corporation tax is proportional and so is the regular tax but the rates are notnecessarily the same.
Analyse the effects of the government proposal assuming that wages and pricesare flexible. Will there be any ambiguity about the results?
With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entre..
Find out the utility with full insurance for the treatment also how much would the individual be willing to pay to obtain such insurance than the fair premium.
is the current monetary policy expansionary or contractionary? give your reasons for your answer.why has the federal
Meek mill bought £75,000 (nominal value) of 3¾% debenture stock with each £100 (nominal value) of stock costing £90. (a) Calculate the amount paid for the stock.
If the production function is Y = A K1/2L1/2 what is total factor productivity?
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
The short run supply curve for an orange producer in Florida is P=.001Q, where Q is bushels of oranges produced in a year. The market value of a bushel of oranges is $20 a bushel.
The marketplace rate of return on this stock is 9%. What is the amount of the last dividend paid by Weisbro and Sons.
1) What are the distinguishing characteristics of monopolistic competitive market structure? 2) Provide some examples of monopolistically competitive firms in Australian market and their market share.
Commercial banks and non- financial institutions may contribute to economic growth and development from the standpoint of their functions. These functions include?
Illustrate what are some of the considerations in term of opportunity costs that you would have to include in arriving at your decision?
Suppose that the values of the dollar-euro exchange rates are as follows: in New York $1.19 per euro, and in Tokyo $1.21 per euro. Describe how investors could use arbitrage to take advantage of the difference in exchange rates.
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