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Assignment: State and Local Finance
1. A number of states have established stabilization funds that are paid into in years when the state's economy is strong and drawn from when the state's economy is in recession. This means that state taxes are greater than spending in good economic years and less than spending in bad years. How can these contingency funds stabilize a state's economy?
2. Consider the process of earmarking. Explain what it is. Explain how it can lead to inefficient levels of expenditures by the state or local governments. Explain how it can lead to more efficient levels of expenditures by the state or local governments. Use examples for each.
3. Many state and local governments are experiencing a pension crisis. What is the source of this crisis? Last year the stock market had a strong increase and is up again so far this year. What effect, if any, does this have on the pension crisis?
4. "If one city spends more on police protection per capita than does another, one expects less crime in the first city than the second." True, false, or uncertain? Explain your answer.
5. Explain the Baumol hypothesis about the effects of unbalanced growth. Support your answer with diagrams.
A firm has a monopoly on a new type of gaming console. The market demand is given by P=175.3-0.003*Q and thus marginal revenue is MR=175.3-0.006*Q. The monopolist's marginal cost is MC=5.2+0.001*Q. Calculate the profit-maximizing production quantity.
Assume a new Mexican restaurant, specializing in burritos, wants to open on Green street. Assume the restaurant has some market power over the price they set, and that they face a fixed cost of setting up a restaurant.a. Illustrate graphically how th..
you have just started work for a small company fitco that develops private fitness clubs in small towns. fitco buys or
compare them over a period equal to the life of the shorter-lived alternative D) compare the present worth over one life cycle of each alternative. Explain why. Do not waste time just selecting a,b,c, or d. You will not be rated.
Structures and Functions of Financial Institutions
Explain the working of Fiscal policy of that country and explain the budget situation of the country with figures and graph for the past 3-4 years.
1. Which will be larger for a country: PG or APG? Please explain. 2. Country A and Country B have the same population of 200 million. Use the figures in the table below to calculate the head-count ratio and average poverty gap in each country. Finall..
Hugh loves to play tennis. But because he is serious about doing well in college, he only goes to the tennis courts after he accomplishes his studying goals.
Discuss current and proposed real property tax reforms. Do you think that the real property tax is regressive and a burden on lower-income people?
The Glass-Steagall Act was passed into law - the CAMELS rating system, the letter C stands
Given Firms in a market face C(Q)= ((Q^2)/3)+2 and market Demand Q^D(P)= 60-p Derive long run values Q* p* Q* n* Furthermore Suppose only one firm faces.
three people are in a duel. the first is an olympic shooter the second is an average shooter and the third is a drunk.
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