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You are having a political debate with a friend. The discussion centers on taxation You show your friend some data from your economics textbook that suggests that the average American paid about $8,500 in federal income tax in 2007.Your friend says, "If $8,500 per person is what it takes to run this country, then I think that it would be much simpler if we just billed each American $8,500 and eliminated the complex tax code."Is this type of tax supported by the "ability-to-pay" principle of tax equity? Is it vertically equitable? Is it horizontally equitable?
The mayor considers engaging in direct quantity regulation (also called "command- and-control") and declares that each firm must engage in 42.5 units of pollution abate- ment. If the plants are controlled by the same firm, would it be socially optima..
Your company is considering the purchase of new earth movingequipment. The total purchase is $240,000 and we pay with $100,000 cash and borrow therest. (12% per year nominal, compounded monthly for 5 years).
(a.) Is demand elastic or inelastic in the $6-$8 price range How do you know (b.) If the table represents the demand faced by a monopoly firm, then what is that firm's marginal revenue as it increases output from 1700 units to 2300 units
A company is considering replacing its fleet of delivery vans and has a choice between gasoline and diesel powered vehicles. The gasoline powered truck has an initial cost of $34000 and a fuel economy of 9 MPG. The diesel powered model has an init..
If the price of output is still fixed at $300, and the productivity of workers is still defined by the data in the second row, draw the VMPL curve, insert the supply limit and determine the equilibrium wage.
A new machine is to be purchased for $150,000. The company believes it will generate $60,000 annually in revenue due to the purchase of this machine. The company will have to train an operator to run this machine
How does an expansionary monetary policy work? (Describe the steps through which an increase in money supply affects the real GDP). How does fiscal policy work? (Describe the steps through which an increase in G or TR, or a decrease in TX, affects..
We defined the Lerner Index LI = 1/-e where e is the elasticity of demand. We also showed that LI can be alternatively expressed as (P-MC)/P . Use these relationships to show that LI can never exceed 1. What does this imply is the minimum elasticity ..
Was Steve Jobs an awful person? Give direct examples of why or why not.
Consider a standard six sided die, numbered 1 through 6 on each face. The probability of rolling each number is 1/6. a.) Let X equal the sum of the values from two independent rolls, then E[X] is b.) What is the variance of one throw of the die
What is the expected NPV of the product?
What are the potential legal risks associated with the downsizing situation facing WeaveTech?
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