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Festwalia has two types of workers: low-skill workers, who earn $10 per hour, and high-skill workers, who earn $20 per hour. The government of Festwalia currently imposes a 20% proportional tax on all labor earnings. It is considering replacing this tax with a new, regressive tax. The new tax system will raise the same total revenue as the original system, but it will do so by taxing the low-skill workers at a rate above 20% and exempting the high-skill workers from paying any tax at all. Will this new, regressive tax system be more or less efficient than the old, proportional tax system?
Suppose you manage a plant that produces engines by teams of workers using assembly machines. The technology is summarized by the production function Q = 4KL where Q is the number of engines produced per week, K is the number of assembling machines, ..
The average cost of tuition plus room and board at a small private liberal arts college is reported to be $8,500 per term, but a financial administrator believes that the average cost is higher. A study conducted using 350 small liberal arts colleges..
consider a market where demand is p10-2q and supply is pq2. there is a consumption positive externality of 2.5unit of
Qs = 24 + 20Px - 15PI + 6T - 32Pr - 20Pe + 5F Determine the equation of the supply curve for x when P=8, T = 4 P=4 P=5 F=47 Plot the supply curve on a graph b. If the values of all of the variables are 0, what is the quantity supplied? c. If the pric..
Draw the budget constraints, indifference curves, and the income consumption curve for a good (bagels) that has an income elasticity that is perfectly inelastic on horizontal axis, and another normal good on (salads) on the vertical axis.
If the economy is competitive so that factors of production are paid the value of their subsidiary products, what is the share of total income that will go to land.
AppsAlot is a small company that develops a variety of apps for smart phones. Management desires to raise $10 million in funds to initiate and continue various projects. With that funding, they project an earnings (net of all expenses except capital ..
Which statement BEST describes the advertising industry's position on marketing to children? marketers must limit their use of advertainment in broadcast and online channels.
Illustrate what are some of the downside risks also potential problems involved when using fiscal policy.
International Business Machines (IBM) was once sued by the government for using monopoly power in the computer market. What was the final outcome? (Research).
Explain how do we measure income inequality. What problems arise the more unequal a country's income distribution becomes.
Compute price elasticity of demand and supply at the equilibrium price and quantity. Price elasticity of demand is equal to___ _ and price elasticity supply is equal to ____. On the same graph above, show the effect on equilibrium price and quantity ..
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