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Mexico spends less than a tenth as much per person on health care as the United States. Does it have more than or less than a tenth as many hospital beds? Physicians? Is the real amount of health care provided overestimated or underestimated by dollar comparisons? Why?
Suppose the own price elasticity of market demand for retail gasoline is -0.6, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1,800,000 annually. What is the price elasticity of demand for a representative gasoline reta..
A hydraulic press was installed 10 years ago at a capital investment cost of $70,000. This press presently has a market value of $14,000. If kept, the press has an economic life of three years, operating expenses of $14,000 per year, and a market val..
Two plants are emitting a uniformly mixed pollutant called gunk into the beautiful sky over Tourist Town. The city government decides that the total emissions must be reduced by 100 kgs of gunk per day. If both systems (the pollution tax and the perm..
President says that wages probably should be cut so that workers could not afford to miss so much work. Evaluate two views utilizing income and substitution effects in your analysis.
A 10-year zero coupon $100 face value bond has yield of 6%. Through series of unfortunate circumstance, expected inflation rises from 2% to 3%. Assuming the nominal yield rises by an amount equal to the rise in expected inflation, compute the change ..
Suppose in Fiscalville there is no tax on the first $10,000 of income, but a 20 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 40 percent. If your i..
Which of the following demonstrates that a country has an unstable business environment?
The industries or sectors of the economy in which business cycle fluctuations tend to affect output the most are:
On aggregate demand does fiscal policy have a strong impact. Explain the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand.
Nowadays it is very important to reduce one's carbon "footprint" (how much carbon we produce in our daily lifestyles). Minimizing the use of fossil fuels and instead resorting to renewable sources of energy. What is the annual effective IRR of this i..
In the United States, what has been the traditional policy for curbing the market power of natural monopolies such as utilities?
One of the elements of risk is uncertainty. Which one of the following best describes the type of uncertainty that risk involves? Risk can be classified as pure or speculative. Which one of the following is the best example of a speculative risk? Whi..
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