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Oregon has an income tax but no state sales tax, while Washington has no state income tax but does have a state sales tax. Oregon residents can deduct the state taxes they pay (the income tax payments) from their federal income taxes, while Washington residents cannot deduct the state taxes they pay (the sales tax payments). What are the equity implications of this difference?
Suppose the market demand function (expressed in dollars) for a normal product is P = 480 – 4q and the marginal cost of producing it is MC = 2q, where P is the price of the product and q is the quantity demanded or supplied. How much would be supplie..
Heckscher Ohlin model with two goods (wheat and cloth) and two inputs (land and labor), suppose price of cloth rises by 10% and the price of wheat remains the same. Wheat is land intensive and cloth is labor intensive. the rise in the price of cl..
On Friday, August 5, 2011, the rating agency Standard and Poor's downgraded the U.S, from AAA to AA+. However, the other major rating agencies -- Moody's and Fitch -- retained the AAA status for the U.S.
You have been asked to produce a forecast for your company's new product (bottled water). List and briefly describ four factors you would consider before giving the forecast.
Firms have excess capacity in the long run under: The firm that uses a price taker is: In the long run, which type of firm may follow "price leadership"? Under perfect competition, in the long run, firms:
Explain how much tax revenue does this tax create. Illustrate what proportion of the tax is borne by consumers.
Identify trade policies from 1980 to 1989 and discuss the following points: What are the main goods and services the United States traded internationally? What trade barriers were in place during that decade? What are two pros and two cons of the tra..
One year of life is then worth a little less than $67,000. Actually, if you are talking of Quality adjusted life year, your last calendar year might be worth considerably less than one quality adjusted life year ignoring that. They can’t spend more t..
If this statement is true and why or why not. "Ronald Coase would suggest that taxing your roommate at the margin for playing music too loudly would result in the efficient allocation if the tax is set appropriately."
What are the key contributions of small business to the U.S. economy? Rank the benefits in terms of importance, and provide the reasons for your ranking.
In the first article it discusses how crude-oil prices increased and how that would hopefully get Russia and the Organization of the Petroleum Exporting Countries (OPEC) to go along with production cuts. A meeting in February is being arranged to dis..
If Jason produces 250 kilograms of food per month, Explain how more liquor must he produce to achieve production efficiency.
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