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In 1991, Congress imposed a 10 percent excise tax on the portion of the retail price of certain items that exceeded the following: $35,000 for automobiles, $150,000 for yachts, and $20,000 for jewelry and furs. Evaluate theses taxes using the normative criteria of a good tax structure. In the answer you might think the taxes are shifted all the way forward to the consumers of these items.
The optimal capital structure is the mix of debt, equity, and preferred stock that minimizes the company's cost of preferred stock.
The three families are considering putting in streetlights on Main Street and are trying to describe how many lights to install. The table below shows each family's willingness to pay for each streetlight.
Explain verbally the theoretical land price gradient between commercial, residential, and agricultural uses of lands. Do we observe this theoretical relationship in Colorado’s Front Range? Why or why not? Discuss at least three of the policy options ..
Since 1965 the average amount of leisure time for men has increased by 8 hours per week. that's like an extra 9 weeks of vacation per year. For women the average increase in leisure has been 6 hours per week. What does this tell us about the income e..
Lynn has a utility function U(W) = W1/2, where W is the amount of wealth that she has. Lynn has two assets. She has $90,000 in a bank account, and she has a house worth $270,000, so her total wealth is initially $360,000. Considering the probability ..
Describe some forms of private spending that represent consumption and some forms that represent investment. The national income accounts include tuition as a part of consumer spending. In your opinion, are the resources you devote to your education ..
A county is considering building a temporary road to cut travel time during the two years it will take to build a permanent highway. The temporary road can be put up in the beginning of the project at a cost of $900,000. Total maintenance cost of the..
A state owned company is providing electricity at the price of $0, 105 and faces the demand for electricity P = 1.255 - 0.001Q. The company has a cost function C(Q) = 100.625 + 0.1050Q. What is the number of kilowatt hours of electricity produced and..
Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results..
Consider the market for taxi service in a city. Explain, by using supply and demand curves, how each of the following actions will affect the market. (Consider each case separately) A. Bus drivers go on strike. B. Bus fares increase after a strike by..
Compare the price and output decisions of a profit-maximizing firm under conditions of pure competition, imperfect competition, and small oligopoly. Show that your answer does not depend upon the cost structure of the firm. What are the social implic..
Suppose that the U.S. noninstitutional adult population is 206 million and the labor force participation rate is 67%. What us the size of the labor force? If 72 million out of the 206 million adults are not working, what is the unemployment rate?
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