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If the government establishes a quantity subsidy on the consumption of a good, it means that the consumer has to pay for each unity of the good its price minus the subsidy. That is, the price of the good becomes, in the consumer’s point of view, p−s, where p is the price of the good and s is the subsidy. Suppose the budget line is given by p1x1 + p2x2 = m. The government decides to impose a quantity tax of t on good 1 and a quantity subsidy of s on good 2. What is the formula for the new budget line? Can you tell whether it becomes ?atter or steeper?
A nation with a large current account deficit is consuming more than it produces or living beyond its means. Is this necessary bad? What is your judgment for the United States?
Assume that the reserve requirement is 20 percent. Also assume that banks do not hold excess reserves and there is no cash held by the public. The Federal Reserve decides that it wants to expand the money supply by $ 40 million dollars. If the Fed is..
suppose a student athlete has the opportunity to earn $800,000 next year playing basketball, $700,000 next year playing basketball or $0 going to college. what is the opportunity cost of going back to college
What is the consumer price index (CPI)? How is it measured? What are the pros and cons of using the CPI as a measure of the cost of living?
Suppose you are a marketplace analyst specializing in theme parks also you're examining Disneyland's stock.
Did you know that many large countries utilize a national sales tax, or value added tax, to raise revenues? What if, -in an effort to FIX THE ECONOMY, the U.S. decided to do this? What other countries are doing this and to what degree of success?
Prepare a project based on the topic of regional product integration
If there are no fixed costs of production, in the long run, the perfectly-competitive firm will produce
corporate profitability declined by 20 percent from 2008 to 2009. what performance percentage would you use to trigger executive bonuses for that year? why? what issues would arise with hiring and retaining the best manager?
Suppose the government reduces taxes by $20billion, that there is no crowding out and the marginal propensity to consume is 3/4. what is the initial effect of the tax reduction on aggregate demand? what additional effect follow this initial effect? w..
Corporate Strategies are divided to long-term and short-term.
Think of any financial innovation in the past ten years
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