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Many states provide firms with an investment tax credit that effectively reduces the price of capital. In theory these credits are designed to stimulate new investment and thus create jobs. Critics have argued that if there are strong factor substitution effects, these subsides can reduce employment in the state. Explain their argument.
Vera is an impoverished graduate student who as only $100 a month to spend on food-Explain why Vera's preferences are of a very special type here. How would you graph them?
Account for the effect of the two proposed fiscal policy actions in the short run and long run. This includes a description of the consequences of relevant macroeconomic variables.
Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )
Suppose you own a home remodelling company. You are currently earning short-run profits. The home remodelling industry is an increasing-cost industry. In the long run, what do you expect will happen to
QuadPlex movie is the only movie theater in Idaho Falls. The nearest rival cenima theater.
Assume that Japanese and U.S automakers produce on identical isoquats. Wages are higher in Japan than in the United States.
From the information in the following table, calculate the income elasticity of demand for this good if income increases from $10,000 to $20,000, and if income increases from $40,000 to $50,000.
How many cases of peaches will be produced per week during the growing season, and what will the selling price per case be if producers ignore the marginal external costs imposed on others?
What is the marginal propensity to consume. What is the slope of the consumption function (you should give a numerical answer, not a formula)?
Assume a indiidual has $8 to spend only on apples and bananas.
Then the image of a company goes up as graduate students use theorganizations products." Does such action square with a company's objective of profit maximization
Once it is describe to be elastic or inelastic, explain how do you come to that conclusion.
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