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Oregon has an income tax but no state sales tax, while Washington has no state income tax but does have a state sales tax. Oregon residents can deduct the state taxes they pay (the income tax payments) from their federal income taxes, while Washington residents cannot deduct the state taxes they pay (the sales tax payments). Governor Wolf has proposed raising personal income taxes for incomes over $50K and raising state sales taxes while lowering property taxes (also deductible on federal income taxes). What are the potential equity implications of this proposal?
Roughly speaking, a merger between two firms is legal:
You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. How much can we e..
A hedger has taken a long position in the wheat futures market. What does a long position in the above example mean? What is the risk that is hedged in this transaction? What are the risks and rewards of buying versus writing options?
Suppose that the government imposes a temporary tari? on all imports, which makes imports more expensive relative to domestic residents (reducing the trade balance for any fixed level of the real exchange rate). Discuss the implications of this polic..
Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved to protect consumers?
Suppose instead that use of the Sonoma county buy local currency is completely voluntary. Who is the most likely to use this currency.
Why did Jackson and his followers insist on the removal of Indians from the Southeast (and places like soutwest Georgia)? What kind of society replaced that of the Creeks, Choctaw, Tuskegee, Seminole, and Apalachee?
Two power plants are currently emitting 8,000 tons of pollution each (for a total of 1,600 tons). Pollution reduction costs for Plant 1 are given by MCR(1)=.02Q and for Plant 2 by MCR(2)=.03Q, where Q represents the number of tons of pollution reduct..
Explain how the optimal usage of the variable input, labor, will change in response to the following changes in the short-run: A) A drop in the price of the good or service that the firm sells B) A drop in the hourly wage C) A decline in the producti..
The right to vote of women is easily one of the greatest victories of Progressive reformers. Since women represented just over 50% of the population, it's fair to say that until women gained the right to vote the United States was not a truly a democ..
Eighty five years ago, America's 12-year Great Depression began with a crash. The bottom fell out of the stock market on October 24, 1929, signaling the start of the longest and deepest economic decline in the nation's history. Could the crash happen..
Illustrate what is the relationship among a firm's total income, profit also total cost?
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