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Explain the difference between substitute and complementary goods. Define each one properly and then provide a two real world examples of each good. Do not use examples from the textbook.
The payroll tax is levied at a rate of 15.3% of a worker’s earnings, up to a ceiling. For workers with earnings greater than the ceiling, the tax rate is only 2.9%. Also, the payroll tax does not apply to capital income, which is a larger share of in..
Suppose that there preventative consumer’s preferences change, in that his or her marginal rate of substitution of leisure for consumption in- creases for any quantities of consumption and leisure. Explain what this change in preferences means in mor..
To fully understand how taxes affect economic well-being, we must compare the
New classical economists believe that it is possible under certain circumstances for an increase in the money supply to lead to a decrease in real GDP in the short run.
Analyze the effects of a reduction in the nominal money stock on the price level, on output, and on the real money stock when the aggregate supply curve is positively sloped and wages adjust slowly over time.
Analyse the effect of an increase in the price of sim cards on the equilibrium price and equilibrium quantity of cellphones handsets
You decide to open an individual retirement account (IRA) at your local bank that pays 7%/year/year. At the end of each of the next 40 years, you will deposit $7,500 per year into the account (40 total deposits). 3 years after the last deposit, you w..
If a $24 per share stock has a P/E ratio of 20 and pays out 40% of its profits in dividends, how large is its dividends? Also what is the implied rate of return?
q1. what effective value is facing japan airlines for the purchase of a boeing 747 if boeings aircraft values in
You are the manager of a firm that receives revenues of $60,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -1, and the cross-price elasticity of demand between product Y and X is 1..
List one way that a market-based health insurance system fails to limit costs. Then, discuss how either the Affordable Care Act or a single-payer system would correct that failure.
Find the present value of this project by using the Adjusted Present Value (APV) formula
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