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Consider two firms X and Y produce identically tasting cold drinks. In order to increase the demand for its cold drink, firm X increases its advertisement outlay. However the advertising doesn’t increase its demand in the long run. Explain why this must be the case.
If the income tax base were broadened by eliminating these deductions, tax rates could be lowered, while raising the same amount of tax revenue. For each of these deductions, what would you expect the likely effect on taxpayer behavior to be
Assume the U.S. economy begins in long-run equilibrium. Concerns about global climate change cause the government to significantly restrict the production of electricity form fossil fuels.
In an expansionary fiscal policy to overcome current recession, the Federal Government increases its expending to improve the nation's physical infrastructure
Elucidate how tax credit to a business would help to stimulate the economy.
What is the difference in the national income accounts if a firm purchases a car for an executive or the firm pays the executive an additional income to purchase a car?
Different races now or likely to be in workforce of the future depends on the US populations racial demographic changes.
Governments of country A and country B spend the same amounteach year. Spending on functions relating to dealing with marketexternalities and public goods accounts for 25 percent ofgovernment expenditures in country A
What is the present worth of a $50,000 municipal bond that has aninterest rate of 4 percent per year, payable quarterly? Thebond matures in 15yrs , and the market interest rate is 8 percentper year, compounded quarterly.
A needy family of a mother and three children currently receives cash benefits that average $12 per day. The mother of this family is allowed to earn an average of $4 per day before her benefits begin to decline. After that, for each dollar earned..
Supose we have two alternatives which have same output that is the same benefits. If we apply incremental B/C ratio the result gives 0. Can we assume that it is less than 1 and chose the lower cost alternative?
Explain how many baseball jerseys will you sell in Los Angeles and how many in Brooklyn. What will be the price of your jersey in Los Angeles and what will be the price in Brooklyn.
When borrowing money, what is the better gauge of our true cost of borrowing - the nominal rate of interest or the real rate of interest? Please explain.
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