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Q1. State two economic principles of taxation and which principle best justifies the excise tax on gasoline, when the tax revenue is used to maintain or improve the roads? Which principle best justifies the progressive U.S. taxation profits of corporate? Clarify.
Q2. 1) "Unemployment is more important problem than price increases". This kind of statement is normative or positive?2) You are given a choice between two movie passes, dinner at a Red Lobster and a new book. What is your opportunity cost? Explain.
Steps that a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept
You complain that the current labor contract specifies a full hour for your lunch break and you still have over 15 minutes left.
Any goods from all should be of higher demand than supply; the other good should show higher supply than demand.
The two economies are so far apart that they don't share ideas and each evolves as a separate roomer economy.
Explain a way that your family interactsin factor market and a way that it interactsin products market. Discuss how circular flow relates to current economic situations.
he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.
If the nominal interest rate in Japan remains unchanged, what happens to the interest rate paid on Korean deposits.
Carefully explain the concept of the reaction function in duopoly analysis.
How great an open market purchase or sale of securities should the central bank undertake to restore the original interest rate.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit?
With the decrease in demand for bridge and tunnel crossings, what is the optimal way to adjust tolls: raise tolls, lower tolls, or leave unchanged.
Who has the comparative advantage in what product. Once they specialize, how much does output increase. What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing.
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