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Use GDP * tax rate = Federal tax revenue. Take a position on the tax base and the tax rate. Do you want to grow the base or increase the tax rate and/or what and why? How do tax rates influence economic activity? What are the effects on the aggregate demand and aggregate supply curves? What are the effects of taxes and regulations on business formation?
Suppose two firms are competing in prices (Bertrand) in an industry where demand is p=200-4Q. (a) If both firms have MC=120, what is the equilibrium quantity for each firm? Profits?
What are institutional arrangements and why might they have a crucial role to play in determining a nation's development prospects? Illustrate your answer by referring to the experience of one country.?
1. What has been the role of the Commonwealth Constitution in setting the framework for regulation of transport and communications?
Suppose that the economy's total resources are 320hours of labor and 20 acres of land. Use a diagram and some algebrato determine the allocation of resources. (It doesn'tnecessarily have to be to scale.)
A decision maker wishe to minimize the cost of producing a given level of total benefit, B = 288. The cost function is C = 6x + 3y and the total benefit is B = xy. Set up the Lagrangian adn then determine the levels of x and y at the minimum level of..
Hubert's Copy Services is in perfect competition. Hubert currently charges 10 cents per page, which is the going market price. He thinks that he can increase his profit by raising the price. Is it possible? Why or why not?
What do we call a period of production long enough for producers to adjust the quantities of all their resources, including capital?
However, after the cost of the acts, he still loses money on the weekends. What is his marginal revenue and marginal cost of a patron on weekends and how should he attempt to fix his unprofitability problem?
Evaluate both the advocates' position and the critics' position. Determine which position you support and defend your position.
Use an interest rate of 8% per year to determine what the equivalent annual benefits must be to ensure a B/C ratio of at least 1.0.
Jim is considering quitting his job and using his savings to start a small business. He expects that his cost will consist of a lease on the building, inventory,wages for two workers, electricity ,and insurance.
Social Dynamo Corporation earned profits last year of $49 million on sales of $500 million. During the same period, its major competitor - EIO Corp.- enjoyed sales of $490 million and earned profits of $52 million.
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