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Taxes to reduce teenage smoking? Many researchers believe the falling price of cigarettes during the mid-1990s caused an increase in teenage smoking, whereas price hikes during the late 1990s led to a reduction in teenage smoking. Many economists believe the impact of rising and falling prices depends on the price elasticity of demand for cigarettes by teenagers. Question: Should taxes be used to raise the price of cigarettes as a way to reduce teenage smoking? Identify the pros and cons of your answer.
Why do points on a utility possibility curve represent efficient allocations of resources? Why must the utility possibility curve be downward sloping.
Consider options on Microsoft stock. Suppose that there are call options with a strike price of $10 and put options with a strike price of $10, both with the expiration date of January 16th. Compute the gross profit (i.e. disregarding option premium)..
What is “effective demand” according to keynes? How can there be a lack of effective demand? How did keynes explain that aggregate production and aggregate spending might not be equal? What happens if aggregate production is greater than aggregate sp..
Explain how resource scarcity influence hospice/palliative care for children and describe choices stakeholders are forced to make.
demand for labor in China will drive up costs per worker there to $5 per hour. How does this alter the isocost and isoquant graph? d.Given these forecasts, where should you expand production?
Suppose that the demand and supply functions for good X are Qd= 298-8P Qs= -32 + 4P. Find the equilibrium price and quantity? What is the market outcome if price is $35? What do you expect to happen? Why? What happens to equilibrium price and quantit..
Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 150 - 2Q. The cost function for each firm is C(Q) = 6Q. The total industry output will be
In which of the scenarios listed here will the unemployment rate fall below the natural rate of unemployment? There could be more than one answer. Inflation is steady at 3% for two years but then decreases to 1% for a year. Inflation is steady at 5% ..
q1. how would you graph an edge worth box for two consumers with the same utility of uxy? also how would you do the
An industry has two firms, each of which produces output at a constant unit cost of $10 per unit. The demand function for the industry is q(p) = 1,000,000/p. Give the best-response function for each firm. What is the Cournot equilibrium price for thi..
What does central bank independence mean? Which dimensions are included? Politically independent monetary bank is an important prerequisite for currency stability
What do temporary changes in the tax code do for incentives? Does this encourage long term planning? Should the government encourage long term planning? Should the Government use tax policy to change behavior?
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