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1. Supporters of accelerated depreciation in 1981 acknowledged that it favored heavy industry ("smokestack America") but argued that this was desirable. Why do economist tend to look askance at such arguments? Can you identify any major market failures? If it were decided to subsidize these industries, in what other ways might it be done?
2. In the debate concerning repeal of the provision allowing capital gains on assets passed on to one’s heirs to escape taxation, some have reasoned that death is not voluntary, and therefore one should not tax capital gains upon death. Evaluate
A major bakery-cafe chain is evaluating whether they should consolidate its two offices into one location when the two leases expire. In addition, the company also needs to decide
Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium price, quantity and consumer surplus?
You purchase a 1 year T-bill with a $10,000 face value at a price today of $9,756.0975 (a) What is the implied yield to maturity on the 1 year bond? (b) After 1 year, what is the rate of return of the T-bill?
If you purchase a $25,000 car, which is to be paid for in 60 monthly installments of $489.15, what effective annual interest are you paying for this financing arrangement?
What are the advantages of E-Commerce? Name all the specific cyber issues that have necessitated new laws? Explain what the term “spontaneous order” means? Name all of the factors that, according to Lawrence Lessig, govern both real space and cybersp..
Your book describes the increase in the money supply as being analogous to giving people more money. If the output of goods and services is not growing at a similar rate, inflation will eventually occur. According to PPP Theory, what will happen to t..
Executive officers within an organization will often feel compelled and tempted to emphasize short-term results—net income for the current year—over long-term
Show how the answer depends on the shape as well as location of the supply as well as demand curves.
If the value of jan's retirement portfolio increased from $210000 to 489000 over a 14 year period with no deposits made to the account over that period, what annual rate of return did she make?
Differentiated goods are NOT a feature of a:
A recent analysis by Bloomberg Magazine discusses what would happen if England would suddenly leave the European Union, in terms of “shocks” in Consumer expectations, Investment, Credit and Currency. Since this has never happened before, people are u..
What is the externality associated with an individual driving on a congested highway? How do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..
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