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1) Is an MNC generally faced with incurring double taxation on its profits in the subsidiary's country? Why or why not?
2) "The reason the government has to step in and 'internalize' benefit and cost externalities is because people are basically selfish." Do you agree or disagree and why?
Rick Nash, a player for the Columbus Blue Jackets hockey club earned $5.25 million this year. The CPI for this year is 225, base year 1983. If Rick were to maintain his current purchasing power how much would he have earned in 1983?
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
Pete and Paul live in an exchange economy (so we can use the Edge worth-box). The economy has endowment of 10 cheese slices and 10 crackers. Pete has distinguished taste, he likes to eat cheese with cracker, to the extent that he considers them perfe..
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time? (Include data)
Globalisation of the world economy has significantly improved our living standards. Do you support the idea of globalising the Australian economy? Why. Why not? In writing your answer, wherever possible, back up your arguments with the theory, resear..
One of the elements of risk is uncertainty. Which one of the following best describes the type of uncertainty that risk involves? Risk can be classified as pure or speculative. Which one of the following is the best example of a speculative risk? Whi..
Consider the production possibility frontier for a simple two-good (closed) economy. Quantities of good x produced are plotted on the horizontal axis. Quantities of good y produced are plotted on the vertical axis. Suppose that the production of both..
Suppose that you have a job paying $40,000 per year. With a 15% probability, next year your wage will be reduced to $10,000 for the year. What is your expected income next year? Suppose that you could insure yourself against the risk of reduced consu..
determines the net weight of each, and computes the mean of these 16 weights with the sample standard deviation, s= 0.25.
First degree price and third degree price discrimination work to increase a firm's profits by more accurately matching willingness to pay to the marginal costs of production. First-degree price discrimination works to increase a firm's profits by con..
A company is considering the installation of a new machine that costs $150,000. The machine is expected to lead to new net income of $40,000 per year for the next five years. Using SL depreciation, $0 salvage value, and an effective income tax rate o..
Assume capital depreciates at 10 percent a year. Economy A has 1.000 units of capital while Economy B has 2,000 units of capital. Illustrate what must Gross Investments be in Each Economy to keep capital stocks Constant.
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