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There are two goods in the economy beer and chicken wings. The consumer has an income of $12,229. The government believes that beer is bad for you so it is thinking of imposing a tax of 106% on beer. The price of one beer is 128 and the price of one order of chicken wings is 17. By how much does the maximum amount of beer that the consumer can afford changes after the tax is imposed? (If she can afford 10 more units input 10 as you answer if she can afford 10 less units input-10 and so on)
Determine how does globalization lead to greater competition in market place? Discuss the implications for market structure in industries opened to global competition?
Draw a Keynesian Aggregate Demand and Supply Model at Full Employment and no Inflation, where there is an increase in government spending on welfare programs. What will happen to price and output? Use Keynesian Aggregate Demand and Supply Model. Show..
Assume the firm can produce 5000 units of out put by combining its fixed capital with 100 units of labor and 450 units of raw materials. What are the total cost and average total cost of producing 5000 units of output?
Explain the impact of external costs and external benefits on resource allocation; Why are public goods not produced in sufficient quantities by private markets? Which of the following are examples of public goods (or services)? Delete the incorrec..
What is the budget line equation - what is the slope of the budget line equation and what is the opportunity cost of one more candy bar?
complete the following table in billions of dollarslevel of output cons. saving apc aps mpc mpsincome gdpdi340 -8360
What is a perfectly competitive market? What is marginal revenue? How is it related to total and average revenue? How does competitive firm determine the quantity that maximizes profit?
Collect information regarding the minimum wage. State the purpose of this legal price, assess its impact on the market for labor, and evaluate the extent to which it achieves its purpose.
Most macroeconomists believe it is a good thing that taxes act as automatic stabilizers and lower the size of the multiplier. However, a smaller multiplier means that the change in government purchases of goods and services, government transfers
What differentiates the company's products from its competitor's in terms of utility? What differentiates the company's products from its competitor's in terms of packaging, size, and availability?
There are two assets that consumers can use in order to provide for future consumption: there is a short-term liquid asset and a long-term illiquid asset - does the planner provide more or less liquidity insurance compared to the market allocation?
What is the break-even price and what is the shut-down price and should Joe continue to produce in the short run? Explain.
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