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Participate in a discussion with your classmates regarding where you see the U.S. economy in its business cycle right now, as based on the economic concepts in the textbook. Now that we learned that the real business cycle results from fluctuations i..
The influence of labour unions on wages has been hotly debated over the last decades. Textbook economics would suggest that the introduction of labour unions in wage negotiations would lead to upward wage pressure, reducing employment.
Should chain stores imitate the packaging of leading brands? (Store brands will frequently have the look of a well-known brand). Why or why not
The ability to arbitrage the differences between international tax systems is a very important aspect of international tax planning - Tax Arbitrage and Economic Substance
Consider the random relocation economy developed in this chapter. Each person receives an endowment of 500 goods when young and nothing when old. People only want to consume when old. Let Mt= 1.1Mt−1for every period t. Write down the contract that a ..
Suppose that the government levies a tax on oil companies equal to a proportion of the value of the company’s oil reserves. (The government assures the firms that the tax is for one time only.) According to the neoclassical model, what effect will th..
Why would your company have bid with a zero mark-up on some past tenders? Why didn’t it win all of those contracts?
Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 8.8%, and the MPC is 0.75. How much money should the government spend to eliminate this GDP loss? Calculate the tax cut needed to eliminate this GDP loss.
There are two firms that compete over price (Bertrand). Solve for the one-period Nash equilibrium market price, quantity, and profit of each firm. What is the price, quantity, and profit of each firm if they collude to produce the monopoly output bet..
Determine the depletion charges using the percentage depletion method for the first year only for a coal mine. The applicable rate for the percentage depletion method is 12%. Cost to acquire mine rights = $50,000
The purchasing agent for a municipality has contracted with a local car dealer to purchase four cars. The dealer has 25 cars on his lot; 10 red, 7 blue, 6 white, and 2 purple.
Michael spends $10 a month on both Pez dispensers and Superman action. His marginal-utility-to-price ratio for the Pez dispensers is 40.
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