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1. To encourage inner-city youths to spend more time playing sports, the government introduces a super income tax of 10% on professional basketball players and plans to use the revenue to improve inner-city sports facilities.
a. Will the super income tax raise much revenue for the government?
b. Who will pay most of the tax: the players or the team owners?
c. Will the tax create a large or a small excess burden?
2. In an attempt to raise more revenue, the government decides to increase the tax on buyers of coffee.
a. What will determine how much more Starbucks charges for a coffee?
b. How will the quantity of coffee bought in coffee shops change?
c. Will the government raise much revenue from the coffee tax?
Assume Doughnuts R Us chooses to produce 150 doughnuts. What is the number of doughnut shops in the market.
Elucidate how scarcity of resources influences this market and describe the choices stakeholders are forced to make.
Illustrate what is the next best thing to sliced bread in your product or is your product the next best thing.
Compare and contrast the possible consequences for an economy of inflation and deflation.
Explain the tools used to pursue expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate? b) Explain what is meant by a built-in stabilizer and give two examples.
Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
Illustrate what is the difference among the short-run also the long-run for a perfectly competitive firm in terms of costs also profits.
with monetary policy for closed, it is hard for authorities to stimulate demand. Interior design does this show that currency-board regime was a mistake.
What is an individual depositor'spayoff when he withdraws at t = 2 as a function of the number of remaining depositors who withdrew at t = 1?
suppose at the current level of labor used the mrp 100 and the mfc 50. to maximize profits the firm shouldadditional
At what price of food in terms of manufactures would A and B respectively supply food? Would trade take place between A and B in David Ricardo’s world? How many manufactures could B supply?
From the list below, select the components or inputs associated with the production function where GDP is the output. There is more than one possible answer. Capital deepening, population, physical capital, aggregate supply, aggregate demand.
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