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a) Explain why a higher marginal tax rate reduces the size of the government expenditure multiplier.
b) Suppose government increases autonomous taxes and defence expenditure by the same amount. Will real GDP increase in the short run? Why?
Suppose that a small town uses a referendum to overcome free ridership problem & determine how its residents might value a new water filtration system for its public water supply.
Explain how would you go about resolving the issue if you were the president of a small, poor country.
The cost of a seasonal pass to six flags great adventure is not much more than a weekly pass.
Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it produces any output-How does this tax affect the firm's fixed, marginal, and average costs?
Assume you own a home re-modelling company. You are currently earning short-run profits. The home re-modelling industry is an increasing-cost industry.
Gaston Piston Corporation has yearly sales of $50,735,000 and maintains an average inventory level of $15,012,000. The average accounts receivable balance outstanding is $10,008,000.
Describe briefly why time lags in discresionary fiscal policy can adversely affect the efforts.
Mastering the economic way of consideting means learning to reason in terms of supply and demand. Here are additional questions on which you can practice.
Illustrate what percentage of the CEO's total earnings is tied to profits of the firm.
Explain how high does the stock price have to rise for the option strategy to be more profitable.
In the 1st half of the 20th century, AT&T had a near monopoly on local and long distance phone service. The company charged a price for local telephone services.
Ruby's Beauty College of Grand Forks, Nebraska, is one of many local beauty colleges each specializing in different haircutting techniques. Rubys Beauty College would become considered:
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