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Q. Suppose you were offered $2,000 to be delivered in 1 year. Further suppose you had alternative of putting money into a safe certificate of deposit paying annual interest at 10 percent. Would you pay $1,900 in exchange for $2,000 after 1 year? Illustrate what is maximum amount you would pay for offer of $2,000? Suppose offer was $2,000, but delivery was to be in 2 years instead of 1 year. Illustrate what is maximum amount you would be willing to pay?
For proportional tax system presented in table 7, illustrate what are average tax rates for people earning $50,000, $100,000 and $200,000. Illustrate what are corresponding average tax rates in regressive and progressive tax systems.
What is now the effect on gold consumption and mining of an increased use of gold as money.
Find out his utility maximizing H and L. Assume he is not eligible for welfare. Now assume he is eligible for welfare. Does he take welfare or work.
Assume that health production is subject to diminishing returns and that each unit of health care employed entails a constant rate of iatrogenic (medically caused) disease. Expalin why would the product of health function eventually bend downward.
Suppose a nation picks 1000 young adults at random to serve in the army. Illustrate what information do you need to determine the cost of using these people in the Army.
Elucidate how advertising can be employed to allow Tots-R-Us to keep cost above average cost with encouraging entry.
Some of the largest import tariffs tax on imported goods is on shoes. Strangely, the cheaper the shoes, the higher the tariff.
Suppose which equilibrium income is 3200 also the multiplier is 2.38. Equilibrium income would rise to 3400 if planned investment.
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
Illustrate wat would happen if suppliers set the price of pizza at $15. Explain the market adjustment process.
Illustrate what are the limitation of the equilibrium level of national income determined in Keynesian cross model.
Compute the price elasticity of Demand for paint also Elucidate how your calculations. Decide whether the Demand for paint is elastic, unitary elastic or inelastic.
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