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Compare the effect of a $1,000 tax on cars with the effect of a 10 percent tax on cars. Which tax is likely to have the same impact on the demand for cars (in percentage terms) no matter which year it was imposed? In other words, if the tax was imposed in 1988 versus 2008 which tax would have the same impact - the percentage tax or the flat tax? Why is this true?
It has been suggested that regulations established to save lives can actually cause a reduction in lives. The theory suggests that regulation increases the costs of goods and services to lower-income groups and as a result of this increase.
Elucidate what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred.
You are interviewing three candidates for one sales job position. On the basis of your experience and insight, you believe Jane can sell 600 units a day, Joe can sell 450 units a day, and Joan can sell 400 units a day. The daily salary each person is..
For any given demand curve for right to pollute, the government can achieve the same outcome either through setting a price with a corrective tax or through setting quantity with pollution permits.
Relate to the previous task also define for both examples the current market situation - Surplus or Shortage.
Under the Physicians' cooperative model, if the supply price of physicians were to rise, how would this affect the equilibrium staff size in the open-staff case How would it affect the optimal staff size in the closed-staff case
(a) In a typical labor exchange, what does the UPF for that exchange represent (b) Why is the UPF downward sloping (c) What does the slope represent. Finally, to what points in the Edgeworth box for the labor exchange does the UPF correspond
Suppose two equally risky shares, Hi and Lo. Hi shares pay a generous dividend and offer low expected capital gains. Lo shares pay low dividends and offer high expected capital gains.
question 1according to the solow growth model how would each of the following developments affect output per worker and
Suppose you know that Canada's GDP in 1999 was $900 billion, and Canada's GDP in 1933 was $9 billion. What judgment about the change in the economic well-being of average Canadians could you make? Explain.
Under which scenario, rising interest rates or falling interest rates, would a bond investor be most likely to exercise a put option on a bond? Explain.
Much has been made of the fact that people don't consistently act with scientific rationality. What is meant by rationality Consider the three "systematic mistakes" discussed in your text. What are the costs of making those "systematic mistakes".
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