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1. If a political candidate said that if she were elected to Congress, she would work toward cutting federal government spending by one-third over the next four years, would she stand much chance of fulfilling her promise? Why or why not?
2. Discuss the pros and cons of having a high cigarette excise tax.
3. What additional goods and services do we expect from government today as opposed to 60 years ago?
The first national bank received 3,000 inquiries following the latest advertisement describing its 30-month IRA accounts in the Boston World, a local newspaper. Assuming that additional ads would generate similar response rates, is the bank running a..
Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli. Which tribe now has an absolute advantage in producing spaghetti? Which has the comparative ..
Some firms with monopoly power are more focused on market share, size and influence in the economy. This is particularly true if there is a tendency for ownership (stockholders) and control (managers) to be separated.
Elucidate how much should Joseph's income increase to compensate for the rise in the prices of roses.
Consider the demand for mobile phones. Suppose the price elasticity of demand for the market as a whole is .80. A. If all mobile-phone companies simultaneously increased their prices, will total revenue in the industry increase of decrease.
expectations of the business community are increasing into areas beyond the core product or service into consideration
Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.
Assume the size of the expenditure multiplier is ?G = 2. What is the effect of an increase in government purchases by ?G = 200 on income and the interest rate? By how much will private investment be crowded out as a result of this increase in governm..
Illustrate which offers the higher expected return. If you expect the rate of inflation to be 3% over the next year, which is the better investment.
This question is based on The Economist Magazine's Schools Brief: State and Market - which has its own module in Etudes
What are the benefits and drawbacks of having a health program that varies by state versus having one that is uniform across the country? Do you find that the positives of state flexibility outweigh the negative or vice versa? Is it fair that similar..
A gourmet ice cream store has fixed cost expenses (rent, utilities, etc.) of $100,000/year. The ice cream cost $5/liters to produce and sell for $7 per liter. The store sells around 150,000 liters of ice cream per year. If the gourmet ice cream store..
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