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Q. Suppose that average household in a state consumes 800 gallons of gasoline per year. A 20-cent gasoline tax is introduced, coupled with a $160 annual tax rebate per household. Will household be better or worse off under new program?
Q. In lecture, we Suppose unrealistically that re is no tax on interest earnings. n Suppose that U.S. Begins introducing a tax on interest earnings from today. How will this tax policy affect current exchange rate?
Illustrate what role did the policies of various governments play in influencing the international expansion strategies of both McDonald's and Wal-Mart.
Find outing relate to economist's traditional focus on Illustrate what people do, rather than Illustrate what they say they will do.
By how much should domestic auto-makers increase the cost of automobiles if they wish to increase sales by 5 percent next year.
Solve for the equilibrium interest rate. Solve for equilibrium value of consumption and investment.
The local community has instituted a price ceiling of $480. Does consumer surplus increase due to this price ceiling. Does social welfare increase as a result of the price ceiling
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.
A second firm is considering entering this market. What variety should it offer. What prices will the firms charge.
Illustrate what do you expect would happen to coffee consumption? In what direction would the CPI move, ceteris paribus? Would that change correctly reflect the impact on consumers' welfare? Explain briefly.
Illustrate what is the net current value of a project that requires a $100 investment today and returns $50 at the end of the first year and $80 at the end of the second year? Assume a discount rate of 10%.
Elucidate why would elasticity of demand be important to you in determining the products on which the taxes should be levied.
The university is seeking a grant to cover capital costs. How big of a grant would make this project worthwhile (to the university).
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