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1. Describe how a policy by the government and Federal Reserve of NOT intervening in the case of a normal (non-financial-crisis) recession could lead to greater long-term economic growth. (2-4 sentences)
2. Explain why tax cuts to middle-income people, theoretically, would lead to greater economic growth than would tax cuts to higher-income people. (2-4 sentences)
Assume which winemakers in the state of Indiana petitioned the state government to tax wines imported from other states.
Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
Considering a machine which will have an estimated service life of 10 years with a salvage value of 10% of the investment cost. Its expected saving from annual operating and maintenance costs are estimated to be $60,000.To expect a 15% rate of return..
A man pays $160 a year for a life insurance policy with a coverage of $145,000 payable to his survivor upon his death. The probability that he will live through the year is 0.9992. Supply the probability table for this problem. (In this case the outc..
Consider a kicker (K) and a goalie (G) in a soccer game. Suppose that if K kicks to the right and G jumps to the right, the probability of a goal is 0.3. If K kicks to the right and G jumps to the left, the probability of a goal is 0.9. If K kicks..
A construction company in Kurdistan expects to spend $4,000 two years later, $8,000 three years from now, and $6,250 six years from now. What is the present worth of the planned expenditures if the interest rate remains 11.8% per year? Use standard n..
One supply side measure introduced by the Reagan administration was a cut in income tax rates. Use an aggregate demand/aggregate supply diagram to show what effect was intended. What might happen if such a tax cut also shifted the aggregate demand cu..
Consider palletizer at a bottling plant that has a first cost of $141493, has operating and maintenance costs of $17669 per year, and an estimated net salvage value of $48604 at the end of 30 years. Assume an interest rate of 8%. What is the future w..
Each can produce the next generation super computer for math (M) or for chip research. However, only one can successfully produce for both markets simultaneously. Find the Nash equilibrium (include the payoff in your answer), and elucidate why it i..
Explain why the marginal cost curve must cross the average cost curve at the minimum of the average cost. Derive the short run average cost, marginal cost, and average variable cost functions. (Hint: Before you start, what is the output if L = 0?)
When government imposes a price ceiling below the market price, the result will be that Select one:
Sam’s utility function is U(x1, x2) = 2x1 + x2, where x1 is the number of units of good 1 he consumes per week and x2 is the number of units of good 2 he consumes per week. Sam has $200 a week to spend.If he belonged to the club, he could buy good 2 ..
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