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Discuss the following quotation. "The ongoing effort to partially convert Social Security from a payroll tax financing to income tax financing by further cutting the payroll tax.... and replacing the funds with general revenues may in short order put an end to the long standing conception of Social Security as a benefit earning by workers contributions.
Consider the market for vegetable fiber. World price is $9.00 per pound. Unlimited quantities are available for import in the US at that price. The US domestic supply is: If there are no tariffs, quotas or other trade restrictions in the US what will..
Given the estimate for own price elasticity is -4.5, and the upper and lower 95% confidence intervals are -.5 and -8.5, what is the standard error for the own price elasticity estimate?
Suppose a country has total GDP (Y) = $10 trillion, consumption = $7 trillion, government spending = $3 trillion, investment = $2 trillion, and taxes = $1.7 trillion. What is the level of net exports or balance of trade? What is the level of private ..
Evaluate the following statement: In the short run, information about a perfectly competitive firm’s fixed costs is needed to determine both the profit-maximizing level of output and the amount of profit earned when producing that level of output.
Why does the short run Aggregate Supply Curve slope upward? Why does the long run Aggregate Supply Curve a vertical line at potential GDP? Why is there a difference between the long run and the short run when looking at the Aggregate Supply curve?
why would china want its own currency to be undervalued relative to the u.s. dollar? how does china maintain an
When comparing subsidy systems with cash transfers, it is crucial to consider whether it is the general welfare of the recipient or his consumption of the specified good which is of prime importance. Discuss.
Consider a market structure where there is a monopoly in input market (upstream monopolist) and also there is a monopoly in product market (downstream monopoly). If each firm maximizes its profit then there is double mark up. Show that if these two f..
Suppose demand (DU) for health care is given by P= -Q+50.(QAenotes quantity demanded of number of visits to the doctor, and A denotes the price of the visit. Du is graphed below. Graph demand for doctor's visits with full insurance (coinsurance rate ..
Identify any externalities associated with initiatives to develop alternative fuels in the United States. How do these externalities affect the market outcome? Is it possible for a government's solution to a market failure to actually worsen the fail..
q. suppose that market demand for golf balls is described by q 90 - 3p where q is measured in kilos of balls. there
At what value of X will Q be at its maximum. Illustrate at what value of X will Diminishing Returns set in.
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