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State whether each of the following questions is positive or normative. Explain briefly.
a) How much oil conservation (from switching to smaller cars, carpooling, etc.) will a $0.50 per gallon tax on gasoline achieve?
b) Are taxes on wealthy citizens of the United States too high?
When the price of an inferior good declines, does the substitution effect tend to increase or decrease the quantity purchased of that good? Explain and show graphically.
what is the marginal cost for Apples-R-Us? show that Apple-R-Us marginal cost curve intersects average costs at average costs minimum?
Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 − 33Q and ..
What's the difference in Classical Economics versus Keynesian Economics? If the U.S. government decided to cut taxes, what impact would this have on the economy?
q.suppose the production function is y 10k14 el34 and the capital lasts an average of 10 years. assume that the rate of
What are the properties of a general competitive equilibrium? Why is it considered a state of efficiency? What does efficiency, in the sense of a Pareto Optimum, mean? Did he prove the existence of a general competitive equilibrium?
Consider a firm that uses both labor and capital in production. The price of capital is $20 per unit and the wage rate is $10 per hour. Draw the firm’s isocost line assuming a total production cost of $100. How steep is this line (that is, what is it..
The owner of Torpid Oaks B&B wanted to know the average distance its guests had traveled. A random sample of 16 guests showed a mean distance of 85 miles with a standard deviation of 32 miles. The 90 percent confidence interval (in miles) for the mea..
Find a 95% confidence interval for the true percent of car owners in this city who recieved a speeding ticket this year. Evalute your results to the nearest hundredth of a percent.
A house can be purchased for $155,000, and you have $25,000 cash for a down payment. You are considering the following two financing options: What is the effective interest rate of the combined mortgage? Compute the monthly payments for each option o..
In "Preventing a Brave New World" (pp. 331-343), Leon Kass concludes that reproductive and therapeutic cloning of human embryos is unethical. What are the exact steps in Kass's argument for this conclusion? What is your assessment of the strengths an..
When the Fed sells T-bills, Which of the following statements relating Fedwire (the Federal Reserve’s payment system) and CHIPS (the modern equivalent of the New York Clearinghouse Association’s system) is false? The effective federal funds rate is s..
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