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The Roman Empire taxed many faraway provinces. Rome would auction the rights to tax collection to the highest bidder. The winning bidder was given the right to set the tax rate for the province and the right to collect (and keep) the taxes. In turn, the winner would pay the bid amount to the Roman government. Assume (1) that the Roman Senate is interested in maximizing the present value of all future revenues to Rome from auctioning off the tax rights, and (2) that the auction for the rights to each province is conducted annually.
a. Give two reasons why Rome would auction off the rights to tax collection rather than simply send a Roman soldier to collect the taxes.
b. Discuss two problems this system might generate for the Senate.
The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned-ride snowmobiles. The model specifies that sales S vary jointly with disposable personal income Y and the population between ages 15 and 40,
However, another flavor, Cherry Garcia, contains sulfur dioxide preservatives, and other flavors use margarine, not butter. What are the problems a firm faces if it is "politically correct" in some products but not others?
Are some workers more likely than others to be laid off and have a harder time finding another satisfactory job -
Determine what is Risky Behavior Amoung Youths in Behavioral Economics and explain how does it affect the economy?
How much is each pollution voucher worth to Company A on the margin (that is, what is it willing to pay for one more voucher)? To Company B?
Explain the difference between the short run and the long run as it relates to the firm's production function. Why is this distinction important to a firm's manager?
Assume that just some of the members of a common market like the EU adopt full economic and monetary union, including a common currency. What are the advantages and disadvantages to those members joining the full EMU and to those not?
Recent entry of private label brand competition is threatening market share and changing long-term relationships between these major brands.
Assume the economy is currently at potential output and the inflation rate is 8%. Assume the federal funds rate is currently 3%
To what extent was the debt crisis of the early 1980s caused by inappropriate policies that had been pursued by the debtor countries?
What are the advantages and disadvantages of debt swapping as a means of reducing the debts of developing countries?
Where Q is the number of cars washed per hour and L is the number of people employed per hour. The firm receives $5 for each car washed, and the hourly wage rate for each person employed is $4.50. The cost of other inputs like water is trivial; hence..
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