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Categorize each of the following funding schemes as examples of the benefits principleor the ability-to-pay principle.
a. Visitors to many national parks pay anentrance fee.
b. Local property taxes support elementary andsecondary schools.
c. An airport trust fund collects a tax on eachplane ticket sold and uses the money toimprove airports and the air traffic controlsystem.
Calculate the price elasticity of demand for the product below using average values for the prices and quantities in your formula.
As per the Solow model, how would each of the following affect consumption per worker in the long run.
The US congress is presently debating the new budget. Should federal spending be drastically reduced.
Suppose that the banking system has no excess reserves. Calculate the maximum amount of check-writing deposits when bank reserves total $10,000 and the reserve requirement;
Coimpute how much the shortage or surplus is if there is any.
Illustrate what are the mistakes made by investors in dealing with foreign exchange investments? Provide examples.
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Find the equation of the new demand curve for Chevrolets. What is the relationship between D C and D' C ? What explains this relationship?
The Internet boom of late 1990s was hailed as the four advent of a new economy: that would radically alter the face of business companies. By 2002, however, it was clear that new economy had not arrived on schedule.
Determine the four phases of the business cycle? How long do business cycles last and how do seasonal variations and long-run trends complicate measurement of businrss cycle?
The necessary change in taxes and government spending and the effect on aggregate demand, GDP, and employment.
Elucidate which major reasons justify the importance of country risk analysis for the investment portfolios.
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