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Answer the following question that examines the impact of government policies on the distribution of earnings.
a) Analyze how increasing the investment tax credit given to firms that make expenditures on new capital affects the dispersion of earnings.
b) Describe the expected effects that college scholarships based on (i) student ability, and (ii) student need are likely to have on the distribution of earnings.
c) Proposals to tax health and other employee benefits, which are not now subject to the income tax, have been made in recent years. Assuming that more highly paid workers have higher employee benefits analyze the effects on measured earnings inequality if these tax proposals are adopted. Assume that fringe benefits are seldom included in the measures of earnings used to calculate earnings inequality
Apply supply and demand analysis to price determination and predict changes in supply and/or demand Analyze the effects of elasticity on consumer and business behavior
Use your own example in order to illustrate these concepts. Can the marginal utility from a product be negative? If yes, give an example.
A group of investors is thinking about buying a ticket also sharing the proceeds if they win. The organizer offers the following deal.
Prove that every weighted average of three numbers x1
Suppose that U.S. citizens start saving more. What does this imply about the supply of loanable funds and the equilibrium real interest rate. Explain what would happens to the real exchange rate.
Congresswoman Gaga represents a state in which several firms fabricate furniture. She needs to impose tariffs on all imported furniture.
What is the current U.S. Fiscal Policy - is it expansionary or contractionary? If the current GDP has declined or expanded over the past 2 quarters at least, which of the tools of fiscal policy would you use to try to rein in the economy and how is t..
Suppose that 3% of the employed lose their jobs each month and 15% of the unemployed find a job each month, what is the steady-state rate of unemployment?
Discuss the capture of the regulatory agency and your prediction as to the capture of the replacement regulatory agency and the politicians in the future.
The newly established Bureau of Time Travel has been given authority to regulate time travel. If the bureau sets a price that allows Time Riders to earn a normal profit (that is, a fair return), illustrate what price will time travelers pay per tr..
Discuss how the two alternatives listed differ on the public-private continuum. Also describe how appropriate public policy might differ as the industry moves.
Use the midpoint method to Compute your cost elasticity of demand as the cost of DVD's
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