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1. The table on federal income tax rates facing various income groups suggests that the marginal tax rate in the United States has fallen. What would be your prediction as to how this decline in marginal tax rates could affect the quantity of Labor supplied in the United States.
2. Suppose the quality of elementary education is a public good. How might we infer the demand for elementary school quality from residential property values?
3. How could the program that redistributes income from rich to poor be considered a public good?
4. Sugar prices in the United States are several times higher than the WORLD PRICE of Sugar. This disparity results from a FEDERAL government program that keeps enough foreign produced sugar out of the United States to hold US sugar prices at a high level. The program raises the price of all sweetened foods produced in the US; it boosts food costs for the average household by more than $100 per week. Who benefits from this program? Why do you suppose it exists?
A manufacturer of small plastic injection molded parts (caps, closures, fitments and pipettes) was experiencing static electricity problems during various steps in their molding and handling operations. The static caused the plastic parts to cling to..
Suppose that the pre tax price of gasoline is $1 per gallon. A tax of $0.50 is imposed and is paid by consumers to the government. What must the gross price of gasoline be after the tax so that the consumer tax burden is equal to the producer tax bur..
Real GDP is: A.the base year market value of all final goods and services produced domestically during a given period.
When excess demand exists for tickets to a major sporting event or concert, profit opportunities exist for scalpers. Explain using supply and demand curves to illustrate this economic principle. Do you agree or disagree that these scalpers are effici..
Why is the price elasticity of demand a relative measure? That is, why is elasticity measured in percentage terms rather than absolute terms?
You know that marginal cost of last unit is $30. Should industry continue to operate at a loss. Carefully elucidate your answer
Classify the following topics as relating to microeconomics or macroeconomics?
Coffee farmers operate in a competitive market with free entry where the cost function for each of the existing 100 farms that are currently operating in the area is given by C(q)=25+30q+q^2. q represents each bag of 8 kilograms of coffee that each f..
The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada, and Mexico whose purpose is to eliminate tariffs between the countries and promote all aspects of international trade. Opponents of NAFTA point ou..
What's the point of creating new bills with more security measures to prevent counterfeiting? If the old bills are still acceptable as currency, why would anyone even try to counterfeit new banknotes with all these security features?
Using IS-LM analysis show graphically and explain how a liquidity trap affects the Fed’s ability to use conventional monetary policy to affect short-run interest rates and output.
Explain what is happening to both marginal productivity of each additional worker and the marginal cost of each additional unit of output.
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