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Rich family before tax 500,000. tax rate 30%. middle class before tax 50000. 20% tax rate. poor family 20000. 2% tax rate. what is the ratio of rich's family's income to the poor family's income before tax and after tax? is this tax progressive?
Consumer surplus is smallest for. Which of the following markets will have the largest deadweight loss? A monopoly can price discriminate between two groups of consumers if each group has ________.
Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in the society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social ..
What investment will you choose if your utility function were given by U(M) = M2 ? What is the certainty equivalent of the chosen investment?
Assume that household consumption decision suddenly become less sensitive to change in the rate of interest.
Problem associated with first video: Increasing transformation Consider the following utility function u(x1, x2) = x1x2. Calculate the MRS for this utility function. Compute and compare the MRS for the bundles (x1, x2) = (1, 2) and (x1, x2) = (2, 1)...
How does imposing rent controls affect the number of housing units available to low-income families? Illustrate your response using graphs.
Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer? Does the difference in response matters? I
Illustrate what are some of the damaging effects deflation has on an economy. Elucidate what would be a monetary policy prescription to reduce or eliminate deflation.
For each year from 2006 to 2009, calculate the dividend yield, the capital gains yields, and the total return to the stock. Express your calculations in percentage terms.
q.a toy manufacturer launched a new toy truck last year which was a huge success. 2.5 million invested by company for a
If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?
Eastman Kodak filed for a bankruptcy in January 2012. Using our analytical framework of nine areas of interest introduced in class explain the main causes of the company's misfortunes.
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