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Recently there has been discussion in the news about taxing junk food (soft drinks, for example) in an effort to reduce the incidence of obesity in the U.S. Do you think the demand for junk food is elastic or inelastic with respect to price.
Based on your knowledge of the price elasticity of demand, do you think the deadweight loss of a soda/junk-food tax would be relatively large or relatively small? Why? Do you think taxing junk food would be a good idea? Based on your analysis, would it really help reduce the number of obese people in the United States? Explain.
Suppose that the federal government’s annual budget deficit is $250 billion and that the Fed’s holdings of government securities increase by $10 billion over the year. How much of the deficit was monetized?
Has the current government policy on this issue been effective? Explain why or why not. What changes would you propose, if you were the president? Explain why.
If a local movie theater sells tickets at different prices (senior citizens versus young people, matinee versus evening prices) is the local movie theater a monopoly What about the concession stand inside the theater
Go to the Bureau of Economic Analysis at this Web site, and look up the latest new release for real GDP. Address the following questions after reading the latest release: Where is the United States in the business cycle? What is the real GDP today?
global positioning units for cruise missiles by the government. new chalk by a local school board.
How do you remember order of operations? If you use a calculator for computation, is order of operations still important? Why or why not? What are some of the possible outcomes when order of operations is ignored?
Describe to the mayor one aggregate demand and supply factor that would have the greatest impact on the economy of your city. Provide a rationale for your response.
From you reading, it is clear that contractionary monetary policy decreases the money supply in an economy. When there is a decline in money supply, it will contribute to decreases in Gross Domestic Product.
Explain the relationship among the required reserve ratio, the potential deposit expansion multiplier, and deposit expansion multiplier.
in calculating the gdp national income accountants atreat inventory changes as an adjustment to personal consumption
Organization where the market demand is given by QD = 1,500 - 40P, in the long-run equilibrium there will how many firms.
Satiation occurs when people have everything that they need or want. Many economists have been fascinated with satiation. Which of the following is correct regarding satiation?
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