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Your employer allows you to purchase a parking permit with “pretax dollars” – that is, you don’t have to pay taxes on the money that you used to purchase this permit. Does allowing some people to purchase certain goods or services using pretax dollars increase or decrease equity in the U.S. tax system? Explain.
Describe three types of physician remuneration schemes and comment on physician incentives under each scheme. For each scheme, summarize the evidence regarding physician behaviour.
Derive the total supply function of X for the industry assuming that the industry operated under perfect competition.
Statistics show China has a huge savings rate and huge trade surpluses. In contrast, the U.S. has very small savings rates and very large trade deficits. What national income accounting can explain this? Discuss and reference equations and/or the cir..
In the country of Mainia, GDP consists of cranberries and maple syrup. In 2000, 50 units of cranberries are sold at $10 per unit, and 100 units of maple syrup are sold at $5 per unit. If the price of cranberries was $5 per unit and the price of maple..
Would you say the firm is price discriminating? Why or why not, and if yes what type of price discrimination is this? If people began trading these hard drives freely between the US & Mexico, what would happen to the price?
Compare the efficiency of the following two methods of amending the just-compensation constraint: Define just compensation to be fair market value (including relocation costs) plus, say, 20 percent. b. Allow private property owners to make their own ..
Which of the following is correct about comparative advantage?
What combination of T and M will you choose? Suppose that the price of day trip rises to $80. How will this change your decision making?
Year Price level Price level Exchange Real exchange rate For China for U.S rate 1997 100.0 100.00 0.12 0.12 1998 99.20 101.55 0.12 0.117 1999 97.81 103.77 0.12 0.113 2000 98.20 107.27 0.12 0.110 2001 98.91 110.29 0.12 0.108 2002 98.16 112.05 0.12 0.1..
What was your profit on 1 Short Call option (100 shares) with a $70/share strike price and a $4/share premium when the price at maturity was $82? How much profit did you make per share if you SELL SHORT at $38 and BUY TO COVER at $29. Your premium fe..
Adam Smith favours a policy of laissez faire in managing economic activities. Why? Economics deals with the efficient use of resources? Why? Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?
Before output has had time to adjust, by how much is disposable income reduced. Compute the resulting change in consumption expenditure.
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