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Explain why a military draft can be thought of as involving off-budget taxation and spending?
In early 1998, S3 was a small microchip-design firm with a big problem. The company knew that Intel’s patent wall would eventually stall its high-performance graphic-microchip business. S3 hatched a plan to fix the problem. What is the implication fo..
If factor-intensity reversals were indeed prevalent in the real world, how might this fact be used to explain the Leontief paradox? If this explained the paradox, would it suggest that any given U.S. trading partner stood a better chance of conformin..
A natural monopolist has a cost structure C(q) = 400 + 25q and faces market demand D(p) = 200 - 2p. Solve for the monopolist's profit, output, and consumer surplus when price is set to average cost.
Suppose the components of spending in an economy are as follows: What is the equilibrium level of income (Y)? (Hint: Y=C+I+X-M) What is the trade balance (X-M) at this equilibrium ? Suppose exports increase by 100. What is the new equilibrium level o..
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..
The single most important health policy choice in the United States over the past four decades has nothing to do with the Department of Health and Human Service
Suppose that there is a bond that will pay $500 for each of the next three years (the first payment is one year from now). At the end of three years the bond matures and the holder receives the $10,000 face value of the bond. If the market rate is 4%..
According to studies undertaken by the Department of Agriculture, the price elasticity of demand for cigarettes is approximately -0.3 and the income elasticity is approximately 0.5. What effect would a 10% increase in the price of cigarettes due to i..
Suppose that some soybean farmers experience losses over a long period and therefore decide to exit the market. What effect will this exit have on the market supply of soybeans? How will the change in supply affect the market price of soybeans and th..
RAND study found that the income elasticity of demand for dental care is 0.15. Over the last one decade, income of the population has increased by 21%. Therefore, the income effect alone should a)Increase the demand for dental care by about 3% b)Incr..
A change in the real one supply can result either from a change in the nominal money supply through Federal Reserve policy (holding the price level conatant) or from a change in the price level (holding the nominal only supply constant). the change i..
Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:
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