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Brunner and coauthors (2001) studied home ownership and median incomes in different California communities and their connection with voting on a proposal to promote school choice. At the time, students had to attend school in the district where they lived or else pay for private school. Under the proposal, students could obtain education at any private or public school that had room for them. If they left their own district, then that district would pay the student’s new school what the district would have received if the student had stayed there. If the private school cost more than that, the student would pay the difference. Note that public services such as education are partially capitalized in house prices. What does this fact suggest about the likely net benefits of the proposed plan for homeowners in high income communities compared to home owners in low income communities? What does it suggest about the likely net benefits of the proposed plan for home owners in high income communities compared to renters in those same communities? Explain
You have budgeted a maximum of $250 per month for a car loan. (a) If your bank offers financing terms of 60 months at a yearly 12% interest, what is the most you can pay for a car? Do not put a $ or comma in your answer. Make sure you put interest in..
a researcher reported that he had found the demand curve for kerosene to be upward sloping.-as the price of kerosene rose the quantity demanded of kerosene increased. Illustrate what questions might you have for this researcher.
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B (H)=420H-40H^2 and C(H)=100H+120H^2. The corresponding formulas for marginal benefit and marginal cost are MB (H)=420-80H and MC(H)=100+240H.
John Adams wrote his wife that his office is the "most insignificant office that was the invention of man."
What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar? When we purchase the German products, our demand for euro is going up or down? ..
GPI is a highly objective alternative to GDP. The main flaw with GDP is that it only includes final goods and services not primary and intermediate good production. Net Domestic Product is GDP after taxes. Over time, the U.S. economy seems to grow ab..
Participate in a discussion with your classmates regarding where you see the U.S. economy in its business cycle right now, as based on the economic concepts in the textbook. Now that we learned that the real business cycle results from fluctuations i..
The service a homeowner performs when she Moser yard is not included in GDP because
As weekend prices skyrocket more people will play golf during the week and eventually the weekend prices will drop and weekday prices. Differentiate among weekday and weekend prices.
Why are trade negotiations usually mercantilist, ie, why does country A agree to reduce its trade barriers in exchange for country B also agreeing to lower trade barriers, when economic theory says that both A and B benefit
Consider a static (one-period), closed economy with one representative consumer, one representative firm, and a government. The level of capital K and government expenditures G in the economy are both fixed exogenously. Formally define a competitive ..
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