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Professor Grubert of MIT points out that nearly half of federal government spending is on social insurance programs, like social security, Medicare and Medicaid, Supplemental Nutrition Assistance Program or food stamps, the Earned Income Tax Credit, and so on. Can these programs be rationalized by market failures? Explain your answer
Why is it difficult to analyze the welfare implications of growth in the neoclassical model? What proxy is often used to reach a conclusion about the effects of growth? What leads to the conclusion that, if welfare is to improve with growth in the la..
Illustrate what is the distinction between marginal revenue product also marginal revenue. How does the government of Canada redistribute income.
Lowering the interest rate will
Unstable export markets, worsening terms of trade, and limited access to the markets in advanced countries are just a few of the problems that have plagued nations in Africa, Asia, Latin America, and Middle East. For example, developing countries hav..
From the scenario, identify the possible illegal or unethical activities activities in which the print shop boss plans to engage in, and identify the consequences on society from an economic point of view.
q. 1 the cost to drive on a freeway is 0 at all times of the day. this cost establishes equilibrium at 3 a.m. however
Annual disbursements for maintenance of critical heavily used equipment will be $25,000 for the first 10 years, and then $35,000 into infinity. If interest is 15%, what is the capitalized cost?
The owner-manager of Good Guys Enterprises obtains utility from income (profit) and from having the firm behave in a socially conscious manner, such as making charitable contributions or civic expenditures. Can you set up the problem and derive the o..
In 2016, a nation's population was 10 million, its real GDP was $1.21 billion, and its GDP deflator had a value of 121. By 2017, its population had increased to 12 million, its real GDP had risen to $1.5 billion, and its GDP deflator had a value of 1..
The first national bank received 3,000 inquiries following the latest advertisement describing its 30-month IRA accounts in the Boston World, a local newspaper. Assuming that additional ads would generate similar response rates, is the bank running a..
The car company pays 40,000 to the steel company to buy the steel and pays its workers 40,000 to make the cars, which were then sold to consumers for 120,000. Using the production gof final goods approach, how much is the GDP in this economy?
What is the relationship between marginal cost and marginal revenue when a single-price monopoly maximizes profit? How does a single-price monopoly determine the price it will charge its customers? What is the relationship between price, marginal rev..
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