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1. Suppose that a tariff is imposed on imports of minivans. Show graphically what the effect is in terms of price and quantity of imports. Be sure that your graph is completely and correctly labeled. What determines how much of the tariff is paid by the buyers of the minivans?
2. Suppose a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value. The Lexus sells for 6,000,000 Japanese yen in Tokyo and the Mercedes sells for 50,000 euros in Stuttgart. Using the purchasing power parity theory, explain the exchange rate between the yen and the euro.
q1. demonstrate graphically the cost of income taxation of 30 to consumers and producers for an income of
Barb age 25, files as a single taxpayer. She is employed at a monthly salary of $2,150. She claims no dependents. Her employer withheld $1,600 from her wages for income taxes for 12 months' of work. Compute of Barb’s income tax due to or from the IRS..
One common criticism in the optimal taxation literature is the specification of the social welfare function. The optimal taxation literature (I have the Mirrlees framework in mind) relies on first specifying a social welfare function. what kind of po..
q.a toy manufacturer launched a new toy truck last year which was a huge success. 2.5 million invested by company for a
In Winona, a gallon of gasoline at Kwik trip sells for $2.279. In the east end of Rochester, Kwik trip sells gasoline for $2.179 per gallon. Using demand and supply curves, explain the price differential between the two ends of Rochester. Is this d..
Explain how would each of these traps impact the production possibilities frontier.
Joe makes monthly deposits of $1,000 into an account with an NAR of 8% and weekly compounding. What will this be worth in 5 years? (This can be done by converting both the rate and payments to weekly, monthly or annually)
What are the effects of taxes on price level? Why? In your opinion, do taxes lead to efficiency or inefficiency? How does a free market eliminate a surplus?
Illustrate what happens to aggregate output and the price level in each case.
When the price of pears fell to $3, what part of the change in Sarah's demand was due to the income effect and what part was due to the substitution effect?
Discuss how both the fiscal and monetary policies in the United States and in the Bible relate to the model of aggregate demand and aggregate supply and the issues involved in implementing the policies.
What are some more common restrictions on the activities of multinational corporations in host countries? Your 200 word answer should focus on selecting and organizing your most relevant comments in a coherent fashion
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