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Suppose a protective tariff on shirts is initiated in Country X, which had been importing them from Country Y. Among the following groups, who gains an who loses (short term)?
Indicate gain or loss:
Consumer of shirts in Country X
Consumers of shirts in Country Y
Owners of shirt factories and their employees in Country X
Ownsers of shirt factories and their employees in Country Y
The private sector in Country X, ie, excluding its government
Country X as a whole, including its government.
Agoira moves from a command system to a market system. Number of markets with shortages _____ (Increases, Decreases, No Change)
Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2012.
If a reform of the tax laws discourages saving by taxing interest income, according to the Loanable Funds model we would expect
General Electric paid its line workers $12 per hour last year when the Consumer Price Index was 100. Suppose over the past year that deflation occurred and the aggregate price level fell to 90. Instructions: Round your answers to two decimal places. ..
By how much will total economic surplus change if the city council passes a law requiring employers to include full reimbursement
At this level of pollution, what is the marginal cost of pollution control.
Solve for the new equilibrium quantity (Q**), the sellers price (Ps), and the consumer’s price (P**). Solve for consumer surplus, producer surplus, government revenue and total surplus with the tax.
Explain why you cannot primarily rely on budgets or expenditure documents to ascertain the costs of a project. In other words, why is it inappropriate to use budgets for estimating costs?
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax. For example, if the price of a chocolate bar is $5 and the government imposes a tax of 20 c..
Assuming transaction costs are small, the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems?
Suppose that a store will sell 2000 boxes of bananas a week at a price of $12 per box. If the store raises its prices to $15 per box, it will sell 1500 boxes. What is the elasticity using the original formula? What is the elasticity using the midpoin..
You have two sets of estimates of national account numbers for a closed economy for next year. In the first set, government expenditures will be $30 billion, transfer payments will be $10 billion, and taxes will be $45 billion. Based on these numbers..
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