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Which of the following beliefs is not part of supply-side economics?
1. A sharp reduction in corporate income taxes would discourage U.S. corporations from shifting their production facilities to other countries, thus leading to a decrease in the unemployment rate.
2. A sharp reduction in personal income taxes would bring forth a higher capital stock through greater saving and investment.
3. A sharp reduction in personal income taxes would bring forth higher labor-force participation.
4. A reduction in tax rates would lead to increased output and actually allow tax revenues to rise.
Let u(x,y) = x1/3y2/3 and let I = 100, Px = Py = 1. Write the FOC for the consumer's UMP and compute the consumer's demand function. Let U(x,y)=5x+4y and let I denote income and Px,Py the prices of the goods. Compute the demand functions for good..
Current concerns stem from the fear that if medicare remains an open ended program, its share of the federal budge will continue to increase over time. Prepare a brief memo examining "a freeze in physicians' fees and a requirement of mandatory ass..
What incentives does a capitates physician have to keep his patients happy? What incentive does an FFS physician have?
Explain why the monopolistically competitive industry is said to be inefficient with "too many firms, each producing too little output." Explain what might offset this inefficiency from the point of view of consumers.
consider a competitive market with the demand equation p 12 - q and the supply equation is p q. what is the market
1. Explain the difference between general-equilibrium models and partial-equilibrium models. How are the numbers of endogenous and exogenous variables related to whether a model is a partial-equilibrium or general-equilibrium model?
UAW labor contract with General Dynamics is being renegotiated.
demand for a good can be characterized by p 100 - q. there are two firms firm 1 and firm 2. they have identical cost
Cypress River Landscape Supply is a larege wholesale supplier of landscaping materials in Gerogia. Cypress River's sales vary seasonally; sales tend to be higher in the spring months than in other months.
in 1970 lyle bought a hand calculator for 200. the calculator was more accurate in its four functions of addition
Discuss the long run implications of monopolistic competition with respect to (a) utilization of plant, (b) allocation of resources, and (c) advertising and product differentiation. Compare this to the situation of perfect competition.
What is the internal rate of return on this investment? Assume that the cab is paid for at the beginning of the ?rst year, but that the annual cash ?ows happen at the end of the year.
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