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Currently the state of ohio imposes no sales tax on food products in grocery stores. Suppose that the government passed a bill to impose a $0.6 sales tax for each gallon of milk on consumers. Please use the supply and demand diagram for the milk market, and do the Tax Incidence analysis
Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) in this economy? Suppose short-run output over the next four years ..
Assume the economy initially is in a long run equilibrium plus the following: the U.S. dollar is relatively strong against all major foreign currencies. Suppose the Congress and the President decide to decrease government spending dramatically
Determine the economic implications for the United States of the increase of China and India as significant economic powers.
Explain how would you decide also what was the best level of emission reduction. Why do you think your approach would be better than others.
As an employee of the World Bank, you have been asked to research 1 economic concern in an Asian country and write a report on your findings.
A tariff I ssimply a tax on imports. Use our model of the excise tax (with diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer
Studies indicate that the price elasticity of demand for cigarettes is about -0.4.If a pack of cigarettes currently costs $2.0 and the government wants to reduce smoking by 20%, by how much should it increase the price?
At a product price of $56, will this company produce in the short run? If it is preferable to manufacture, what will be the profit-maximizing or loss-minimizing output?
Explain what would happen to the demand for Motorola picture phones if the price of digital cameras rose
John is willing to purchase 7 computers. This scenario displays the law of demand. Do you agree or disagree.
Suppose that you will receive $2000 a year in years 1 thru 5, $3000 a year in years 6 thru 8, and $4000 in year 9 with all cash flows to be received at the end of a year.
Explain why the following statement is false: If a firm's output is increasing and marginal cost (change in total cost divided by change in quantity) is rising, then average total cost (TC/Q) must be rising also.
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