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a. (True or False) An increase in income tax rates will always result in an increase in government tax revenues. (Explain)
b) (True or False) Recessions will often result in a government budget deficit. (Explain)
c) Compare the traditional view versus the view of Ricardian equivalence of the effects of a debt-financed tax cut on:
i) Current Consumption ii) Current National Savings iii) Current Interest rates
If the Federal Reserve wishes to put upward pressure on market interest rates, what would it be most likely to do? How would it proceed to push the Federal funds rate in an upward direction? How would it lower the funds rate? Describe the trade-offs ..
How did World War II end the age of European colonialism and empire and usher in the Cold War? Why did European political and economic dominance decline between 1945 and 1979 yet the ideologies produced on this small continent continue to have such p..
Your sister is thinking about starting a Web-based business selling specialty tea to upper middle class Americans who are working outside the home for compensation. She is unsure if she also wants to open up a physical store in her current home State..
You note that over the last five years, the Swiss franc has appreciated from Sfr 1.60/$1 to Sfr 1.45/$1.During that same period, the U.S. consumer price index rose from 100 to 120 and the Swiss consumer price index rose from 100 to 105.On the basis o..
A cost-effective policy is always socially efficient. Enforcement costs are critical to the success of environmental programs and should be included in the overall social costs of the program when evaluating different policy options.
At the beginning of June, Bezco Toy Company budgeted 5,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $50,000 Direct labor 36,000 Total $86,000 The standard materials..
Over the past decade medical costs have increased more rapidly than other prices. In order to illustrate how rising medical costs have affected consumer alternatives, let X represent the quantity of medical services, and let Y represent the quantity ..
At the 2013 Winnebago County Fair a vendor is offering a "fair special" on sandals. If you buy one pair of sandals at the regular price of $50, you get a second pair at a 40% discount, and a third pair at half the regular price. Javier took advantage..
Elinor Ostrum has identified rules that are required for sustainable user-managed common property resources. Which of the following would not be included in that set of rules?
How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller than accounting profit? What are the three basic sources of economic profit? Classify each of the following according to those sources: Sprint – Dish’..
If two goods are substitute goods,
Consider a simplified version of the data described above. Shelly decided study economics and now is about to choose the school. She has narrowed her options to two alternatives. She can either go to Purdue or the University of Chicago. Shelly lives ..
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