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a. A community ponders implementing a no-smoking ordinance that would eliminate smoking in all businesses, government offices, and public places. Smokers are upset and argue that their rights are being violated by this proposed ordinance. An independent analyst estimates that the benefits of the ordinance (reduced medical care costs) will be $100,000 a year while the cost of implementing the ordinance (publicity, enforcement) will be $40,000. Would it be efficient to implement the ordinance? Explain your answer.
b. The Social Security system provides income for people over age 65. If a recipient of Social Security decides to work and earn some income, the amount received in Social Security benefits is typically reduced.
c. How does the provision of Social Security affect people's incentive to save while working?
d. How does the reduction in benefits associated with higher earnings affect people’s incentive to work past age 65?
Explain how is the activity reflected on the balance on current ccount different from the activity reflected on the capital.
Suppose the government is imposing a debt-financed tax cut. Based on the traditional view, what will happen to: Based on the view of Ricardian equivalence, what will happen to:
Understand why depositing cash on a checking account does not affect money supply immediately. Understand why when a commercial bank buys government securities from its clients, new money is being created? Understand why when Fed buys government secu..
Suppose that you own a 25 year old movie theater in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theater with 4 IMAX screens and 20 more regular screens. Now that you have looked at these characteristi..
Define what a phoneme is. Explain the difference between a phone and phoneme. Then explain what a minimal pair is. Explain the purpose of identifying a minimal pair. Provide an example in English, or another language, of a minimal pair. Select one no..
The aggregate expenditure model is built upon which of the following assumption!! The real-balance interest-rate and foreign purchase effect all help explain!! The consumption schedule directly relates!!
Consider a simplified version of the data described above. Shelly decided study economics and now is about to choose the school. She has narrowed her options to two alternatives. She can either go to Purdue or the University of Chicago. Shelly lives ..
She can earn an annual interest rate of 4% or a nominal interest rate of 3.95% compounded continuously. Which is the best option and at the best interest rate, what will the account balance be after 25 years?
The concern of an auto insurer that insured drivers will not be as careful is due to the problem of:
What organizational characteristics facilitate embracing accidents as sources of innovative products and services? Consider 3M and Post-it Notes.
hat is American's MRTS between K and L? MRTS between K and F. Should American try to ensure that all its MRTSs are equal. Explain what does American's production function exhibit constant, increasing, or decreasing returns to scale.
Describe the equilibrium price and sales of X. Let PY = $10. Determine whether X and Y are substitutes or complements.
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