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Assume that 10 percent of the population will always evade paying taxes no matter what anyone else does. Equally 10 percent of the population will never evade paying taxes. The remaining 80 percent are more likely to evade when the proportion evading increases. Prove that there will be at least one equilibrium level of tax evasion. Show how multiple equilibria can occur. Which equilibria are stable?
At a 10% annual interest rate (compounded yearly), what is thepresent value of the cash flows? To receive full credit you mustuse 2 arithmetic gradients. what is the present value of the cash flows
Sam riddle religiously invest $1,000 a month in a retirement account that pays 12% interest compounded monthly for the first 5 years and 9% interest compounded monthly for the next 10 years. The accumulation Sam will have at the end 15 years.
suppose it is known that 10 of people who play poker machines have a gambling problem. suppose it is also known that 20
5 150 300 6 150 390 Refer to the above data. If the product price is $95 at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss How much will the profit or loss be Show all ca..
Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard error of each estimated coefficient is given in parentheses below it.
When the price of squiggles is $700, 2200 units are demaded. When the price per unit of squiggles is $300, 4200 units of squiggles are demanded. 1) Use these two points and calculate the estimated demand function.
Consider a farm with 1500 acres total where 1000 acres are in wheat and 500 are in soybeans. Wheat yield is 90 bushels/acre, wheat price is $3/bushel, and total operating expenses per acre are $100. Soybean yields are 35 bushels/acre, soybean pric..
The central bank has great credibility. The central bank announces a policy of disinflation, and the public believes the announcement. Inflationary expectations fall immediately.
In economics, it is agreed that Investment, especially capital investment, leads to economic growth. The source of Investment is from savings. What conclusions can you draw about the incentives for capital investment and economic growth.
Why would neoclassical economists be critical?
What does this do to the supply curve of beef? to the equilibrium price of beef?
Assume that the potato chip industry in the Northwest in 2011 was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return. In 2012, two smart lawyers quietly bought up all the firms and began op..
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