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President Obama appointed the bi partisan Bowles-Simpson Commiss ion to create a blue print for fiscal reform, but nothing came of it. The specifics of the Commissions’ plan are attached.
a. Discuss the zero plan features terms of efficiency and equity.
b. Do you prefer the alternative plan that limits rather than eliminates tax expenditures? Why or why not?
Suppose that in 2013, Global launches an aggressive marketing campaign that boosts sales by 15%. However, their operating margin falls from 5.57% to 4.50%. Suppose that they have no other income, interest expenses are unchanged, price per share of Gl..
Each of the players chooses an (integer) amount between $180 and $300. Both players receive the lower amount. Five dollars are transferred from the player who chose the larger amount to the player who chose the smaller one. Which strategies survive r..
What are some real-life examples of monopolistically competitive, oligopoly, and monopoly markets? How do market prices differ between perfectly and imperfectly competitive markets? Will a monopoly always produce at a profit-maximizing level of outpu..
Pete borrows $10,000 to purchase a used car, He must repay the loan in 48 equal end –of-period monthly payments. Interest is calculated at 1.25% per month.
Over the next three years, a firm is expected to earn an economic profit of $900,000 in the first year, $800,000 in the second year, and $700,000 in the third year. After the end of the third year, the firm goes out of business. If the risk-adjusted ..
You plan to withdraw equal annual amounts on your sixty-first, sixty-second, seventieth birthdays. How much will be your annual withdrawal? b. On your sixty-fifth birthday, you decide to withdraw the entire amount remaining. How much do you withdra..
Which of the following is NOT an example of a process designed to combat moral hazard problems?
Pick Industries produces plastic toothpicks that it sells to distributors in the Southwest. During the early 1990s, the price of the plastic it uses to produce toothpicks fell by 46 percent, due to a local glut of recycled plastic containers. what im..
Restaurants have observed that large parties (eight or more) leave a lower average tip than smaller parties. Identify the effect, which also makes it more difficult to reach global environmental agreements, responsible for this phenomenon.
Discuss the following excerpt from a recent story in the Wall Street Journal. In your discussion demonstrate that you can use the concepts of: "price discrimination and "barriers to entry" to explain:
Evaluate how effective the Federal Trade Commission (FTC) has been in protecting consumer privacy and targeting deceptive and unfair trade practices on the Internet. Support your opinion with specifics.
If the percentage change in quantity demanded is less than the percentage change in price, we would say that over this range, demand is:
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