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An example of a market incentive plan is:
A. a tax on any activity that causes pollution
B. requiring construction firms to subsidize individuals to reduce existing water usage by a specific amount before building new houses that would increase water usage.
C. a limit on the number of new houses built.
D. a restriction on the amount of water a household can use.
Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on t..
the demand for good x is given by the following
Sandra purchases 5 pounds of coffee and 10 gallons of milk per month when the price of coffee is $10 per pound. She purchases 6 pounds of coffee and 12 gallons of milk per month when the price of coffee is $8 per pound.
Suppose the price of celeriac decreases from $80 to $60, and the quantity demanded increases from 100 to 150 bushels. What is the price elasticity of demand using the standard percentage formulas? What is the arc price elasticity of demand?
What is one long-run implication for monetary policy shared by both Quantity Theory of Money and the Natural Rate Hypothesis? When we are in a liquidity trap, monetary policy is weak and fiscal policy is powerful." True or False ? Why?
Presume that the economy has the following production function: Y/L = 8*(K/L) 0.5. Further presume that s = 0.2, gL = 0.3, and δ = 0.1. What is the value of the steady state capital-to-labor ratio?
Suppose the government reduces taxes by $20 billion, that there is no crowding out, and that the marginal propensity to consume is 3/4. a) What is the initial effect of the tax reduction on aggregate demand
Marketing mix is the controllable set of activities that the firm uses to respond to the wants of its target markets. Create a 300–400 word response on the marketing mix and submit to this discussion thread.
Leading up to the crisis of 1997, Thailand had a current account deficit and an economy that was close to full employment, but possibly somewhat above full employment (i.e. there were signs of inflation starting). Where would you put Thailand on t..
Suppose a candidate who runs on a platform of “soak the rich” wins the 2016 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%.
Is the demand for table salt elastic or inelastic? Why?
What is a natural monopoly How does a natural monopoly lead to lower costs than would exist if there were more than one firm in an industry that is a natural monopoly
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