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Federal excise taxes on gasoline vary widely across the developed world. The United States has the lowest taxes at USD $0.40 per gallon (or L0.07 per litter), Canada has taxes of $0.60 per gallon, Japan and much of Europe is $2.00 per gallon, while Britain has the highest tax at $2.83 a gallon or L0.5 per liter. If gasoline taxes are intended to reduce the time losses from road congestion in urban environments and gasoline pre-tax costs about L0.40 per litter, why might the optimal tax in Canada be 50 percent higher than in the United States? What would be an explanation for why adjacent countries would have such different estimates of the price elasticity of demand for auto driving?
Define the Law of Supply? Keeping in view the Law of Supply, how the following factors will shift the supply curve? (Each answer must be supported by a neat diagram):
What role do monetarists believe the government should play in the economy and why? After that has been discussed, what Keynesian and New classical economists believe about macroeconomic policy? Which role of thinking do you think you would fit in?
Explain how the following events would affect the demand for labor. A new education program administered by the company increases labor's marginal product.
Analysis of Pricing: You manage MBA Deli which sells meals at a price of $6 each. The average number of meals sold per month is 7,000. MBA Deli would like to increase its sales and profits. The MBAs running the Deli, know that if price is lowered, th..
Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day. If Pacifica produces only surf..
The Mortensen-Pissarides (MP) framework of search labor is the thing in analyzing (equilibrium) unemployment over the business cycle. Shimer showed that the lack of hires is the big margin that affects the volatility of labor. Since then people tried..
In customer theory there are some useful analytic results that can come from studying homothetic utility functions of consumption for each.
Explain at the current price, eight units are demanded each period. If the objective is to increase total revenue, should the price be increased or decreased.
The price elasticity of demand for mopeds, in absolute value, is 0.5, by what percentage will the quantity of mopeds demanded increase if the prices fall by 10%?
illustrate what will be profit-maximizing or loss-minimizing output, Elucidate. Illustrate what economic profit or loss will industry realize per unit of output.
Your lectures in the first half of our course presented the 21st-century medical technologies that now drive healthcare (and drive healthcare costs) in America. Describe at least three examples of these technologies.
HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment if the companies' rate of return is 16% per year?
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