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1. Explain how built-in (or automatic) stabilizers work. What are the differences between proportional, progressive, and regressive tax systems as they relate to an economy's built-in stability?
2. Define the standardized budget, explain its significance, and state why it may differ from the actual budget. Suppose the full-employment, noninflationary level of real output is GDP 3 (not GDP2) in the economy depicted in Figure 30.3. If the economy is operating at GDP 2, instead of GDP 3, what is the status of its standardized budget? The status of its current fiscal policy? What change in fiscal policy would you recommend? How would you accomplish that in terms of the G and T lines in the figure?
Over the past year Sonya bought $10,000 worth of cards. She sold these cards for $58,000. Sonya rents a shop for $5,000 a year and spends $1,000 in utilities. Sonya owns a cash register which she bought for $2,000 with savings. Her bank pays 3% a ..
In (a) sketch the graph of the given function, and then draw the tangent line at the point P. (b) Using your sketch, approximate the slope of the curve at P, (c) Use (1) to determine the exact value of the slope at P.
Write one page on the impact of both supply and demand factors on oil prices. be sure to include the influence of the change in the world's production level (supply) and the change between season, summer and winter, (demand) on oil prices
Using the SCAMPER acronym, discuss at least two methods in the acronym that Tim may use to update his App to 2014? How will you use these methods in developing your feasibility study?
When Iraq invaded Kuwait in 1990, the market price of crude petroleum jumped from $21.54 per barrel to $30.50 per barrel - an increase of almost 42 percent. Your boss is puzzled, because the price increase actually occurred
Which of Porter's five forces has the greatest effect on risk taking to achieve success? Why?
Suppose there are n identical firms in a market. Each firm's cost function is given by C = 240+ 15q2, where q is the amount that an individual firm produces. This means that an individual firm's marginal cost is given by MC = 30q. Also, the marke..
If my income increases by 10%, then quantity of public transportation demanded drops by 5%. I can say that income elasticity of my demand for public transportation is negative and that public transportation is a normal good.
Give a numerical example to show that a monopolist's marginal revenue can be upward sloping over part of its range. Hint: The price on the demand curve is the producer's average revenue. Think of a graphic that shows the possibility of declining a..
Suppose the two firms merge into a single firm. The profit-maximizing price is $13 and the average cost is $12. Illustrate with a graph.
The typical elephant has an expected life span of 60 years. How would its analysis of rent control differ from Frudos? Illustrate with a complete graph.
What will be the slope of the production possibility frontier, and what price ratio will cause production to take place at that point?
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