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Proponents of a basic income (or negative income tax) argue that it is a superior method of addressing income inequality than the minimum wage. First, briefly explain in what sense the basic income is less disruptive to labor markets than the minimum wage. Second, discuss how, in a parallel universe with NO minimum wage but a basic income of approximately 2/3 of minimum wage, the life of the working poor would be different?
Assume a bank faces a required reserve ratio of 5 percent. If a bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?
You retire at age 60 and expect to live another 27 years. On the day you retire, you have $464,900 in your retirement savings account. You are conservative and expect to earn 4.5% on your money during your retirement. How much can you withdraw from y..
Some individuals have suggesested raising the required reserve ratio for banks to 100 %. What would the money multiplier be if this change were made?
(Price Discrimination of Second Degree) A monopolist has 2 sets of customers distinguished by their demand functions p1=15-p1 and p2=25-2(q2)respectively. The total cost function of the firm is of the form C(Q)=5+3Q , where Q=q1+q2. Derive the aggreg..
Early-childhood environmental factors are said to be important determinants of school performance. What are some of these factors, how important do you think they are, and what might be done to ensure that these factors are not negative?
Which of the following would most likely lead to an increase in the supply of U.S. Dollars to the foreign exchange market?
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3867 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used..
What are the equilibrium price and quantity. If demand increases to D', what are the new equilibrium price and quantity. What happens if the government does not allow the price to change when demand increase.
Sometimes oligopolies in the same industry are very different in size. Suppose we have a duopoly where one firm (Firm A) is large and the other firm (Firm B) is small, as shown in the prisoner's dilemma box: What is Firm B's most likely choice? Firm ..
A financial instrument backed by a collection of mortgages is called a(n):
An investment has just been made to purchase a small CNC lathe of $17,000. This CNC lathe will be used to make ornamental parts for sale. Receipts are estimated at $25,000 per year with costs running $20,000 per year, the salvage value is $3,000 at t..
Explains vicious cycle of poverty. Explain the difference between the economic growth also economic developments.
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