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Consider a new per-worker employment tax on workers (where previously there was no tax). Outline the consequences of this tax on the local labor market. Use appropriate, clear, and well-labeled diagrams. In your answer show (1) the burden of the tax on workers and firms
thinking about modifications in the model again go back to the original model again but add a marginal propensity to
In the late 1990s, several East Asian economies had their currencies pegged to the U. S. dollar. Suppose there is an economic boom in the United States that leads to an increase in U. S. interest rates.
A mass transit subsidy will result in auto use and mass transit ridership levels that are closer to their social optimums than would occur without the subsidy. Use the graphical model discussed in class to explain the effect of a mass transit subsidy..
It is supposed that the liquid soap market is perfectly competitive and current price of a case of liquid soap is $42.00. The firm has estimated it's marginal cost function to be as follows: MC=0.006Q.
Glen spends at least 40 hours a week at his place of business. If he closed the company, he could work for his competitor earning $50,000 a year. He also owns the building the company operates in and could rent it out for $12,000 a year if he closed ..
question 1the demand for watermelons is highest during summer and lowest during winter. yet watermelon prices are
Monopolistic competition is similar to perfect competition in that:
Monetary policy is an effective way to increase demand, if you're the sort of economist that believes the government should meddle in the economy. In an paragraph, thoroughly explain how monetary policy affects each of the four components of aggregat..
TC=0.2Q^2-5Q+30(Q^2 means Q square) a) What is its corresponding marginal cost curve b) If the firm faces a price of $6 per unit, what quantity should it sell c) What profit does the firm make at this price d) Should the firm shut down
A U.S.-based MNC imports 30 percent of its supplies from Europe. Exports to Europe, which are invoiced in Euros, account for approximately 50 percent of its revenues. Explain how the MNC can reduce its economic exposure to exchange and interest rates..
You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic products in your marke
At an Asian mobile service provider, the demand for voice calls has a price-elasticity of demand (PED) of -0.085 (or if we take the absolute value, PED = 0.085) and cross-price elasticity (CED) with respect to the price of short message service
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