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A common policy is to make pension contributions tax deductible and to insist that the pension fund be annuitized on retirement. Explain the logic behind this policy.
A plan to build a new tower would involve a building tax that would collect $6,745 each year for all people in a certain city. If the cash flow begins 2 years from now, what is the present worth of the building plan over a 10 year planning period ..
Given how resources are currently allocated, the Lexington police department can use a marginal policeman to prevent murders, in which case he will prevent 1 murder/year, or the prevent robberies, in which case he will prevent 75 robberies/year.
In the economy of Cape Despair, the subsistence real wage rate is $15 an hour. Whenever real GDP per hour rises above $15, the population grows, and whenever real GDP per hour of labor falls below this level, the population falls.
A cosmetic firm operating in a monopolistically competitive market environment spends a lot of money in advertisement and ends up with super-normal profit even in long run. Is it possible? Explain your answer in few words.
Suppose the demand for a product is given by P = 50 - Q. Also, the supply is given by P = 10 + 3Q. If a $12 per unit excise tax is levied on the buyers of a good, after the tax,what is the total quantity of the good sold.
Suppose for an economy the nominal GDP for 2005 is $1,000 million, and the nominal GDP for 2006 is $1,281 million. The GDP chain price index for 2005 is 100, and the GDP chain price index for 2006 is 105.
The Tax Reform Act of 1986 eliminated the deductibility of interest payments on consumer debt (mostly credit cards and auto loans) but maintained the deductibility of interest payments on mortgages and home equity loans.
Why is the pollution haven hypothesis more likely to be correct in the case of recycled batteries than in the case of sock production?
What is the appropriate fiscal and monetary policy mix?
Example: a strategic objective in the shareholder or financial perspective is to increase market share. A metric to actually measure this strategic objective of market share increase is, "The percentage of increase in market share."
1. Set up the system of equations in matrix form. 2. Solve the system of equations to obtain the equilibrium vales of Y, C and G 3. Obtain the equilibrium budget balance
Give two examples of variables that you would expect to be positively correlated. For each example, explain whether a causal relationship exists between the two variables.
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