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Discuss whether each statement below is true, false or uncertain. Be sure to completely explain why, making use of appropriate equations, diagrams and so on. (a) A fall in the marginal cost of production of a monopolized good on which is levied a tax at the rate of 10% of total sales revenue will increase total tax revenue. (b) Under the two-period intertemporal consumption framework, assume that in an original lifetime plan, a person is initially a saver at the original lifetime interest rate of r(a). Then, if the interest rate is revised to a higher value, r(b) (i.e. r(a) < r(b)), the person will definitely increase the amount he saves under his new lifetime savings and consumption plan. (c) In the two-goods, i.e. leisure and "all other goods (denoting them as G)", labor-supply framework, a rise in the price (denoting this as p) of G will definitely lead to an increase in the optimal hours of work chosen by a consumer.
c) Summarize your findings in a short paragraph d) Test the null hypothesis that there is no association between gender and lying to teachers. Give the test statistic, the P-value and summarize your conclusion. Be sure to include numerical and gra..
In light of the theory of comparative advantage, "Are Any Restrictions On Free International Trade Advantageous. Discuss comment on the current issue of "Exporting Jobs".
Is raising agricultural productivity sufficient to improve rural life in LDCs. Illustrate what policies can be designed to transform agricultural development and raise levels of living in rural areas in LDCs.
Economist George Stigler once wrote that, according to consumer theory, "if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises."
The postwar U.S. economy data shows that the long-run annual growth rate of output is 3.2%, the long-run annual growth rate of money stock is 5.3%, and the nominal interest is 5.8 (a) Find the inflation rate using quantity theory of money. Assume tha..
Calculate the duration of a two-year, $1,000 bond that pays an annual coupon of 10 percent and trades at a yield of 14 percent. What is the expected change in the price of the bond if interest rates decline by 0.50 percent
the owner-manager of good guys enterprises obtains utility from income(profit)and from having the firm behave in a socially conscious manner, such as making charitable contributions or civic expenditures. can you set up the problem and derive the ..
Illustrate what is the basic objective of monetary policy. What are the strengths and weaknesses of monetary policy.
Zachary has opened a retirement account that will pay 5% interest each year; He plans to deposit 10% of his annual salary into the account for 39 years before he retires. His first year's salary is $52,000, and he expects the salary to grow 4% eac..
For any given demand curve for the right to pollute, the government can achieve the same outcome either by setting a price with a corrective tax or by setting a quantity with pollution permits. Suppose there is a sharp improvement in the technolog..
Elucidate if you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate.
For a developing country to increase, it needs capital. The major source of capital in most nations is domestic saving, but the target of stimulating domestic saving usually is in conflict with the government policies targeted at decreasing inequalit..
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