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Explain the pros and cons of using a change in the tax rate to achieve the desired increase in output. Be sure to thoroughly explain how the change will affect equilibrium prices, output, and unemployment.
George W. Bush was elected president in 2000 and his administration conducted fiscal policy together with the monetary policy conducted by the Fed responding to the recession. Although the fiscal policy conducted by the Bush administration successful..
If a monopolist increases quantity by one unit, but sells the increased output at a slightly lower price, A. marginal revenue is affected by adding one additional unit sold at the new price. B. all the previous units, which used to sell at a higher p..
Offshoring and offshoring outsourcing
Calculate dollar rates of return on a deposit 10,000 pounds in a London bank in a year when interest rate on pounds is 10 percent and dollar/pound exchange rate moves from 1.50 dollars per pound to 1.38 dollars per pound.
The physician's office charges you a nonrefundable fee of $50 for the missed appointment, which cannot be applied to a future appointment. How much should you now be willing to spend for a new appointment? $50 $120 $0
Blue Corporation distributes property to its shareholder, Zeke. The property has a fair market value of $ 450,000, an adjusted basis of $ 300,000, and is subject to a liability of $ 250,000. Current E & P is $ 1,000,000. What amount of dividend incom..
Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbour, Friday, is a fisherman, and is willing to trade 2 fish for every coconut that you are willing to give him. Another neighbor, Kwame, is also a fisherman, and he i..
If the US Dollar is equal to 10 Mexicxan Pesos. Then we can say that the US Economy is doing better than Mexico's economy and the US Dollar can buy more than the Peso.
A grocery store has estimated that each plastic bag it uses costs $0.10 to produce. This amount cannot be lowered any further. The chain hires you to figure out how to encourage customers to use fewer plastic bags. what strategy would you recommend?
Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Find the utility maximizing ch..
Determine the minimum sample size to construct a 90% confidence interval for the population mean. Assume the population standard deviation is 1.2 years.
Firm C produces 1,000 pounds of cotton at a cost of 50 cents per pound. They sell all of the cotton to Firm S for 75 cents per pound. Firm S makes 1,000 t-shirts with the cotton for a total cost of $1.50 per t-shirt. They sell all of the shirts to Fi..
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