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California’s Proposition 13, enacted in 1978, limits the property tax on real estate to one percent of the market value when purchased, and a maximum annual increase in the tax amount of two percent. Followers of Henry George contend that Prop 13 deprived local government of its most suitable tax base, real estate taxed, and forced the state to increase other taxed that hurt business activity, and shifted power from local government to the state. According to the Georgists, Prop 13 did not constrain state spending and caused the budget deficit to grow so that California was hit with a fiscal crisis in 2008-09. What could be done to solve California’s financial crisis?
Before economic reforms were implemented in the countries of Eastern Europe, regulation held the price of bread substantially below equilibrium. When reforms were implemented, prices were deregulated and the price of bread rose dramatically.
Illustrate what would happen to the profits CPI makes via their toothpaste division.
Suppose that you can own a car wash and that its total cost function is C= 20 + 2Q + .3Q^2 where C = total cost (in dollars) per hour and Q is the number of cars washed per hour. You receive 5 dollars for each car washed.
A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares line: y = 75 + 6x. This implies that if advertising is $900, then the predicted amount of sales (in dollars) is
Explain how are money cost and opportunity cost related to each other. If markets function well, they are closely related. They are always identical in any economic system.
In an essay of at least two well-developed paragraphs, explain how making regular deposits in a savings account or buying shares of stock or bonds makes an impact on our economy.
The admissions office wants to determine how many in-state and out-of-state students to accept for next fall’s entering freshman class. Tuition for an in-state student is $7,600 per year while out-of-state tuition is $22,500 per year.
In the long-run, if prices of all resources remain unchanged, when a firm doubles all resources the quantity of output more than doubles, the firm is experiences. The term fiscal policy refers to
In the early 1980s, large numbers of Japanese cars began to enter the US. Under pressure from the US auto manufacturers, the US government negotiated a Voluntary Export Agreement with Japan, under which Japan agreed to limit the number of cars it wou..
Describe the contrasting views of the Keynesians and the monetarists with regard to an appropriate contractionary (tightening) policy to bring an economy out of a period of high inflation caused by excess aggregate demand.
A newspaper recently lowered its price from $0.50 to $0.30. As it did, the number of newspapers it sold increased from 240,000 to 280,000 (4 points) a) What was the price elasticity of demand for this newspaper (Arc/ mid-point formula)? What was the ..
Illustrate what share of GDP is composed of consumption. Illustrate what share of GDP is composed of investment.
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