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A second reason the government may impose a tax is to reduce consumption of a good. Such taxes are known as sin taxes. Some argue that we should make some drugs legal and tax them in order to raise tax revenues for the government. The government has decided to place a sin tax on crack. Given what you know about the price elasticity of demand and addictive properties of crack, would you expect a sin tax that raises the price of crack by 15% to decrease the sale of crack by more than or less than 15%? Explain your answer.
What variables are used? Why are the variables used in the model?, Consider relation among measurable variables, what is the impact of an independent variable X on a dependent variable Y, what are some additional independent variable that could in..
What did pre-Keynesian believe about the market and its ability to pull itself out of a recession 9. What role do investments in human capital, physical capital, technology development, and improving institutional quality play in creating economic..
You have been hired by Nobody State University as a consultant to help the university with how to increase their total revenue. The university has been struggling in recent years,
Suppose that macroeconomic forecasters predict that the economy will be expanding in the near future. How might managers use this information?
Firms exist for all but which one of the following reasons?
Jobs are the key to economic progress. Unless we create more jobs, our standard of living will fall
Suppose seven identical items are auctioned one by one. What complication does this present for bidders? Which items, the first or the last, would you expect to sell for the lowest prices on average?
Which of the following is the path through which contractionary monetary policy works?
What are the values of the intercepts for the horizontal and vertical axis and What is the slope of this equation - What is the slope of this equation
Using a budget line and indifference curves
Analyze these using the Phillips curve and economic theory. Research and describe some of the policies that were used by the U.S. government and central bank. Were these policies successful?
What price should you charge to the second group?
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