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Consider the previous exercise with the situation before migration, and suppose that the government requires the rich residents to contribute 3/4 of the cost of local public good provision where they live and the poor residents to contribute 1/4 of the cost.
a. How much public good will be provided under majority voting in each district?
b. Is there any resident who wants to move (and, if so, who and where)? Why or why not?
Explain how the income effect influences food purchases and provide some examples of the income effect that might occur when the price of food rises and other things remain the same.
A man buys a corporate bond from a bond brokerage house for $925. The bond has a face value of $1000 and pays 4% of its face value each year. If the bond will be paid off at the end of 10 years, what rate return will the man receive
Suppose the cost of producing q cars is given by c(q) = 7500 + 2000q-10q^2 a. What is the variable cost of producing 10 cars b. What is the marginal cost of producing the 10th car
CRA CDs, Inc., wants the mean lengths of the "cuts" on a CD to be 135 seconds (2 minutes and 15 seconds). This will allow the disk jockeys to have plenty of time for commercials within each 10-minute segment. Assume the distribution of the length
How does this affect the market for peanut butter?
An airplane whose rest length is 40.0 m is moving at uniform velocity with respect to Earth, at a speed of 630 m/s. By what fraction of its rest length is it shortened to an observer on Earth
In this situation what obligation does the CA have to a new auditor if he is replaced? Discuss briefly
Government consumption in our model is simply a "waste", that is it does not affect anyone's utility or affect the production process. Use the Pareto Optimality framework. For each of them, solve the social planner's problem and show the equations..
Calculate inventory turnover ratios by product and compare with prior periods.
There is an opportunity to translate your intuitive thinking into algebraic form. Money demand refers to the amount of money (either in the form of cash or in the checking account or in any other form that can be used to pay for a purchase or serv..
What general economic reasons might there be for a hospital merger to generate an increase in total profit? Would the hospitals' customers be likely to benefit from the merger? Under what circumstances? Explain carefully
Suppose Mary earns $13 an hour installing transistorized digital chips in electronic calculators. If you were unemployed, would you offer to work for $8 an hour to get the job Why might a profit-maximizing employer turn down your generous offer
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