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States apply high excise tax rates on cigarettes. Which of the following is an accurate statement about such taxes?
A.The taxes yield some revenue, but the amounts are small in relation to general sales and individual income taxes.
B. The taxes force highly profitable tobacco companies to bear their fair share of the costs of state government.
C. Because cigarette purchases are made from discretionary income, the taxes distribute the cost of state government in a progressive fashion.
In Thailand, researchers have found that the price elasticities for food, alcohol, and telecommunications are -.10, -.84, and -.025, respectively. If the goal is to raise tax revenues with the least excess burden possible, what should should be the t..
How do you calculate per capita income and capital per worker in the Solow Growth Model?
Explain why a nation that imposes tariffs on imported goods may find its welfare improving should the tariff result in a favorable shift in the terms of trade.
Which of the following cannot explain the change in female labor force participation rates over the past 75 years? Unemployment compensation programs provide a lower income than workers received while they were employed because full replacement of lo..
Desired Consumption and Investment are: C^d = 4000 - 4000r + .20Y & I^d = 2400 - 4000r. Find an equation relating desired national saving, S^d, to r & Y? What value of the real interest rate clears the goods market when Y = 10,000?
You own a retail establishment run by a store manager who receives a flat salary of $80,000. If you set up another store as a franchise with incentive compensation to the franchisee, what would be a reasonable total compensation range that the franch..
The nominal interest rate is 12% compounded semi-annually. What single amount on July 1, 2015 is equivalent to this cash flow system?
Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm 2 produces and sells 19 units per period, while firm 3’s periodic production and sales are 15 units. Determine the market price and the elasticity of mark..
How does definition of a market, or for that matter, a business strategy, affect that perception of a monopoly.
There are two production technologies available for a new product line. If the firm decides to install technology 1, its costs will be equal to C1(q)=10+2q^(2). If it chooses to install technology 2, its costs will be equal to C2(q)=30+(q^(2)/2) Calc..
Explain the concept of 'effective rate of protection'. What does the effective rate on final goods depend upon and how? In what way does the effective rate analysis help illuminate these policy issues:
Median length of stay was 1.1 days shorter when a hospitalist cared for a Medicare patient. Median cost per case was $853 less (excluding physician fees). There were no significant differences in mortality, 30-day readmissions, or transfers. Hospital..
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