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Assume the corporate income tax were eliminated and revenue lost was made up through rising the payroll tax rate on labor earnings. What would be impact on labor and capital markets of such a shift in tax policy? What is the likely differential incidence of substituting a payroll tax for an equal-yield corporate income tax?
More demand and supply should be included in your analysis Warning: you are not required to "prove" or show your selection of the determinants of demand and supply. But your discussion and selection must be reasonable.
Discuss and explain the concept of the macro economy. Determine the major performance goals that we set for the economy, and how do we measure the performance?
Consider a tropical island economy with 2-sectors, souvenir manufacturing and hospitality. Both sectors are perfectly competitive, and workers are equally able and willing to work in either industry.
Describe why some workers are more likely than others to be laid off or have a harder time finding another satisfactory job.
What government officials increase the price of parking ticket from $40 to $50; they are surprised that their revenue actually falls. What happened?
What divergences arise in equilibrium output and efficient output when spillover benefits and costs are present? Provide some 'real-life' occurrences.
A monopolist sells in both Milwaukee also Cleveland and has identical marginal price of 8 in each market.
A monopoly is manufacturing a level of output at which price is $80, marginal revenue is $40, average total expenses is $100, marginal cost is $40and average fixed cost is $10.
Compare and contrast the strengths and weaknesses of today's Federal Reserve operating procedures and monetary decision making policy.
Due to severe damage, a gas pipeline supplying gas to Arizona was shut down for some weeks in summer of 2003. Gas became scarce in Arizona, and prices increase,
Explain how does that rate compare with the rate in the previous month. What were the unemployment rates for adult men, adult women, teenagers, blacks, Hispanics, and whites.
Illustrate what price should the theater charge for a ticket if it wants to maximize profit. how big will its profit be. What price would you like to charge.
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