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Economic Loss
Q. The high employment deficit is estimated at $100 billion. Assuming that the ecomony is operating below full employment and that it will not overheat during the year,
a. the actual budget is not in deficit.b. increasing GDP will eliminate the deficit.c. increasing GDP will not eliminate the deficit.e. the actual budget is in surplus.
Q. The current price of compact discs, which are traded in perfectly competitive markets, is $10. A $1 per unit tax is levied on the discs. Annual record sales decline from five million to four million as a result of the tax. Assuming that the income effect of the tax induced price change is negligible, the excess burden of the tax will be,
a. $500,000 per yearb. $1 million per yearc. $2 million per year$2.5 million per year
A rural utility organization gives standby power to pumping stations using diesel-powered generators.
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The UAW labor contract with General Dynamics expired in October 2001. IN the months preceding the expiration date, bargaining teams for the UAW and General Dynamics met to negotiate a new contract.
You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firm's products are viewed as identical by most consumers.
Suppose are predicting a steady decline of 6% per year in dividends for the foreseeable future. What is the most you would be willing to pay for this stock.
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The economic prices of international buiseness usually exceed the economic benefits in both the short-term and long-term.
Explain why might the unemployment rate tend to actually underestimate the unemployment problem, especially during a recession.
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