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Using relevant diagrams, describe the effect of the introduction, in a competitive market, of a recurring lump-sum tax collected on the firms:
1. In the short run: on the market (market price, quantities, number of firms) and on the firms (changes in cost curves, output, prices, profits).
2. In the long run: on the market (market price, quantities, number of firms) and on the firms (changes in cost curves, output, prices, profits). What would happen if the tax was paid once only instead?
Each of the policies described above may lead to an increase in the long-run level of investment spending in the economy. Using a diagram of the aggregate production function, show that any such increase will lead to an increase in the future leve..
Draw the budget constraint showing the trade-off between dining hall meals and Cups O’ Soup. Assuming that he spends equal amounts on both goods, draw an indifference curve showing the optimum choice. Label the optimum as point A.
What are some economic, social, and political reasons that make economic growth important to a nation? How could a population increase contribute to economic growth, and how could it hinder growth?
The annual rate of growth of real GDP in a developing nation is 0.3%. Initially, the countries' population was stable from year-year. Recently, however, a significant increase in the nation's birth rate has raised the annual rate of population growth..
Calculate the cross-price elasticity for the following goods. Are they complements or substitutes?
What is the fiscal and montery policy actions in saudi arabia since the start of the global financial crisis
Airframes are produced according to the production function: \(Q = (L^{1/2} + K^{1/2})^{2}\) Suppose the price of labor is $10 per unit and the price of capital is $1 per unit. Find the cost-minimizing combination of labor and capital to produ..
Groups need to choose a topic from the list of topics provided by the lecturer and write an essay on the chosen topic. (This list is placed under additional readings on your BB)
Insert the graph into a Word document. To paste the graphed image on a Word document, press and hold "ALT," then press "PrtScrn" while viewing the graphed image. Select a point on the Word document to paste the graph. Press and hold "Ctrl," then p..
Sara's income is $12 a week. The price of popcorn is $3 a bag, and the price of a cola is $3 a can. a. What is Sara's real income in terms of cola? b. What is her real income in terms of popcorn?
Using a diagram of the labor market, show the effect of an increase in the minimum wage on the wage paid to workers, the number of workers supplied, the number of workers demanded, and the amount of unemployment.
A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use a discount rate of 6%.
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