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Which of the following might logically be reasons used in support of a value added tax for the federal government?
A.Improve separation of revenue sources across the levels of government (federal, state, and local).
B. Provide an increased economic incentive for private saving.
C. Increase the responsiveness of the federal tax base to changes in the natural economic activity.
Assume firm A wants to merge with firm B for $7.5 billion. Before the potential merger, the market for the good produced by firm A and B consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 2,621. Firm B’s..
ESPN currently pays the NFL $1.1 billion per year for eight years for the right to exclusively televise Monday Night Football. What is the net present value of this investment if the parent Disnery company has an opportunity interest rate equal to it..
Consider an individual whose utility function is U = X0.5Y0.5. If she consumes 3 units of X and 4 units of Y, then some level of utility will be experienced. If the individual instead consumes 2 units of Y, how much of good X must she consume in orde..
Develop a brief presentation assessing the economic, legal, and political environments of your country, Briefly describe the country's history and its relevance to its current political, economic, and legal environment
Comment on the following statement: “If John McCain had won the 2008 election everything would have been different.” What would have been different? Would that be a good or bad thing? Would anything be the same? What if Mitt Romney had won the 2012 e..
Which of the following statements suggests that property taxes might be progressive?
List one way that a market-based health insurance system fails to limit costs. Then, discuss how either the Affordable Care Act or a single-payer system would correct that failure.
Suppose that individual A’s utility function, which only depends on wealth (W), is defined asU(W) = W0.5 ,where W stands for her/his wealth. Suppose her/his initial wealth is $10,000, and there is a 20% chance that she may get sick. In the event of i..
Calculate the level of production for which the two methods have the same total costs. Compare the profits of the two manufacturers for production and sales of 200,000 units. Calculate the level of production and sales for which the two methods produ..
The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $55 and has a variable cost of $29. There are $40,820 in fixed costs involved in the production process. Compute the break-even p..
If farmers were to decry the effect of this new technology on the price of milk and lobby government to set the price of milk at the price before the invention, elucidate the result.
One of the most debated areas in economics is balancing the budget. The major contention is on the timing of the policy. If the government were to operate under a strict balanced-budget rule, what do you think would it have to do in a recession? Shou..
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