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How do matching categorical grants compare with categorical lump sum grants? Which type of grant has the greatest impact on expenditure? What influences the impact on expenditure? Be sure to draw the appropriate graphs and give examples.
The US put a specific tariff of €10 on European widgets. Calculate the new equilibrium quantity and price as well as the new Monopoly's profit.
Consider an investor who, on January 1, 2016, purchases a TIPS bond with an original principal of $100,000, an 8 percent annual (or 4 percent semiannual) coupon rate, and 10 years to maturity. From your answer to part a, calculate the inflation-adjus..
Identify and describe an incentive conflict at your business or somewhere you have worked or attended school. What would you change to resolve the conflict?
Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Find the utility maximizing ch..
Assume the market for corn is comprised of many buyers and sellers and resembles perfect competition. The use of corn to make ethanol as an additive to gasoline can lead to an increase in the price of other grain crops (e.g., soybeans). Indicate whet..
Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $160, and the marginal cost of the 40th unit is $120.
Illustrate what will be the short run effect of government imposition of a lump sum tax per firm equal to 170? If this tax remains
To save on gasoline expenses, Edith and Mathew agreed to carpool together for traveling to and from work. Edith preferred to travel on I-20 highway as it was usually the fastest, taking 25 minutes in the absence of traffic delays. Mathew pointed out ..
How a tariff imposed by a small country on its imported good causes a loss of real income, in the sense of lower utility, or "well -being" on the part of consumers?
Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firm cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy for this economy?
At the profit-maximizing output level for a monopolist, which of the following statements is (are) NOT true?
An insurable risk for a business would be one that is due to: A. Changes in consumer tastes B. Changes in government policies C. Economic recession D. Accidents to employees Comment
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