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Ann’s preferences are represented by a utility function UA(x). Suppose one were to (coloquially) say that Carol has more “sensitive preferences” than Ann: her utility function UC (x) satisfies UC (x) = 2UA(x). Prove that for every choice set, Ann and Carol make identical choices.
Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction of 50%. A person can work up to 2,000 hours per year at $8 per hour. Draw the p
collect information on the supply chain design adopted by Nike for the chosen product. Analyze the information and write a 2- to 3-page report in a Microsoft Word document, ad
De?ne the deadweight loss of a unit excise tax on a particular good. What determines its size? Be as complete and speci?c as possible. In the market of part b, suppose that an
The president of the United States announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what happen to int
Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppos
Two plants are emitting a uniformly mixed pollutant called gunk into the beautiful sky over Tourist Town. The city government decides that the total emissions must be reduced
Discuss the current issue of illegal aliens and the impact this has on the U.S. health care system. Should the taxpayers pay for health care for individuals who enter this cou
Which of the following are examples of the shortsightedness effect? During the last 45 years, the U.S. federal budget has been in deficit (annual tax revenue fell short of ann
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