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Suppose that there are 150 houses in the community with 2,000 square feet (providing services that rent for $10,000 per year). The interest rate is 4% and with proper maintenance all of the houses will last forever. In an election the population decides that they want public services worth $8,000 per year.
a. What property tax rate will be necessary to fund these public services?
b. How much money will be raised by the property tax rate?
c. What will happen to the value of the houses after the tax is imposed?
According to the principle of cyclical unemployment, what will occur when the demand for goods and services drops during a recession?
When obama was campaiging for president in 2008 he proposed more government spending paid for with higher taxes on the rich. What impact would those options have on the equilibrium?
Company A has fixed expenses of 15000 per year and each unit of product has a $0.20 variable cost. company B has fixed expenses of 5000 per year and can produce the same product at a $0.50 variable cost. At what number of units of annual production w..
These the aggregate expenditure model developed in this chapter to explain the following statements: a. Coming amid continued turmoil in the financial and credit markets, the report sent stocks lower, with the Dow Jones Industrial Average falling 146..
A city called "Ludwig" is monocentric. The rate at which the price of apartments falls there as a function of the distance of the apartments from the central business district, isn't linear.
health insurance and the labor market please respond to the followinganalyze the implications of adverse selection in
suppose exports and imports of a country are given by the followinggdp exports imports2500 400 2503000 400 3003500 400
farmer dorr figures that her fixed costs are 2000 and the relevant portion of her total cost curve
Draw a supply-demand diagram of the Federal funds market which illustrates the effects of a massive Treasury bill sale by the Fed in the open market.
Consider a consumer who consumes only two products X and Y. (for example, X may be housing and Y may represent a "composite commodity" con- sifting of all other goods).
cinema theater has estimated the following demand functions for its moviesdaytime demand qd 400 - 50 pd nighttime
Consider a dairy that manufactures milk and a ice cream chain that turns that milk into ice cream. Explain how each of these parties could enter into a futures contract to hedge their risk of fluctuating milk prices.
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