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The government is concerned about high rates of unemployment. To spark hiring, it provides tax incentives for the businesses to invest in new capital projects and stimulate job growth. If the sole concern is adding jobs, use the Hicks-Marshall rules of derived demand to determine whether or not this will be an effective public policy. Are there any dangers?
One way to eliminating the tax on capital gains is to index gains for inflation. According to recent U.S. government statistics, $1 in 1972 had the purchasing power of about $3 in 2012. What would be the effect of adjusting capital gains for inflatio..
How do I calculate the price of a gallon of paint that inreases from $3.00 a gallon to $35.00 a gallon. The usage of paint drops 35 gallons a month to 20 gallons a month.
What are the essence of TRIP, TRIM and GATS agreements? What are the implications of these agreements for the development of LDCs?
identify the circumstances under which Sarah should choose package A, the circumstances under which she should choose package B
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 ..
Each point along the market demand curve shows
q.the head of the central bank of a small african nation is trying to determine whether the m1 or m2 money multiplier
Suppose a company incurs the following cost: labor, $600; equipment, $300; and materials, $200. The company owns the building, so it doesn't have to pay the usual $900 in rent. a) What is the total accounting cost? b) What is the total economic cost?..
A farmer’s field grows 30 bushels of corn and 10 bushels of beans. The farmer can either consume these crops herself or trade them, with one bushel of beans being traded for one bushel of corn. Graph the farmer’s budget which is the possible combinat..
How would each of the following changes affect the demand curve for acupuncture?
Using the tools of supply and demand and the competitive market, demonstrate graphically and explain the difference between a "gas crisis," in which prices are rising, and a "gas shortage."
Identify three types of competition that most firms encounter other than competition from other firms in their industry in their home country.
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