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Governments impose taxes for several reasons. The most obvious reason is to raise revenues for the government. If the goal of a government is to raise the maximum revenues, should a per unit tax be imposed on an item that has a price elasticity of demand that is elastic or inelastic. A per unit tax is a tax that is charged as so much per unit of the item sold. An example would be a tax of 42 cents per gallon of gas sold. The tax would be 42 cents a gallon no matter if a gallon of gas had price of $2.00 or $4.00. Explain your answer.
A public university wants to apply the concept of the WACC to developing its interest rate for analyzing capital projects. It has an endowment of $68 million which is earning 6.3% interest. It is paying 4.5% interest on $29 million in bonds. It belie..
Which information culture can cause an organization to have a great degree of difficulty operating.
Also identify and discuss the flows that are created when Government enters the circular flow.
Which leads to higher interest rates, which leads to higher output? Which leads to higher inflation? Which represents a more hawkish Fed? Which represents a more dovish Fed?
The following table contains the ACT scores and the GPA (grade point average) for eight college students. Grade point average is based on a four-point scale and has been rounded to one digit after the decimal. Estimate the relationship between GPA an..
The demand curve for Froot Loops breakfast cereal is very elastic because: A market can be described by the equations Qd = 100 P and Qs = P. What are the equilibrium price and quantity in this market? Which good below might be expected to have the mo..
Fractional relationships between variables are not permitted in the standard form of a linear program.A cycle is an up and down movement in demand that repeats itself in less than 1 year.
We grow wheat that sells for $40,000. The wheat is milled into flour that sells for $55,000. The flour is used to bake bread that sells to consumers for $90,000. Typically, a period where GDP is falling for at least 6 months is considered to be:
Software developers at Acme systems, Inc., have developed an iPhone App that analyzes an individual’s golf swing. Should the developers attempt to de-bug the program completely or not? Use the basic principles of economics and a simple graph to suppo..
Trailer Company has asked its financial planning committee to analyze short- and longer-run pricing and production levels for the new hawk II trailer. What short-run price and output combination would be recommended if the committee decided that Skyh..
Assume instead that the industry can sell any also all of its output at the fixed marketplace price of P = 120. Find out the industries optimal output.
Teak Furniture Co. is considering a new three-year expansion project that requires an initial fixed asset investment of $2,640,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be wo..
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