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One way to design a housing subsidy is to pay a certain percentage of a tenant’s rent, allowing the renter to shop for whatever housing the person thinks most appropriate. An alternative policy is to pay a fixed dollar amount toward whatever rent the person chooses. (Assume that the program is not generous enough to pay more than the tenant’s entire rent.) Which of the following statements is not true if, in equilibrium, the two programs are transferring to the individual the same dollar amount of subsidy? a. The tenant consumes more housing under the price subsidy program. b. The tenant has more utility under the fixed dollar transfer program. c. There is a greater efficiency loss under the price subsidy program. d. The tenant is spending exactly the fixed dollar transfer on housing and no more.
According to Marxist paradigm, what are the primary causal processes that drive globalization and how do these processes differ from the mercantilist and liberal expressions? Explain with reference to the strengths and weaknesses of historical materi..
Illustrate which currently operates out of an office in a small town near Boston, just discovered a vacancy in an office building in downtown Boston
To pay off $60,000,000 worth of new construction bonds when they come due in 19 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting 3 months from now. If the interest rate for the ..
In the following situation, the market is initially in equilibrium. After each event described below, does a surplus or a shortage exist at the original equilibrium price? What will happen to equilibrium price as a result? Draw your answer in GRAPH F..
"The law of diminishing marginal utility states that as an individual increases consumption of a given product within a set period of time, the utility gained from consumption eventually declines” Examine whether the statement above is TRUE or FALSE...
The Solow Growth Model. In 2010, Japan was a large open economy with perfect capital mobility that was at its steady state.
Traditional brick and mortar retail stores are losing their customer base while their online competitors are seeing phenomenal increase in the number of customers. Examine the differences and similarities (where possible) in the two modes of retail i..
Assume that that students and nonstudents have revealed their group demands for junior college education, a public good, as follows: Q = 1,500 – 0.25P, (Student demand) Q = 4,000 – P, (Nonstudent demand) where Q is the number of students educated per..
Boat is a product of the Baldwin Company which is primarily in the Nano segment, but is also sold in another segment. Baldwin starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equa..
The manager of a corporate division faces the possibility of an audit every year. She prefers to spend time preparing if she will be audited; otherwise, she would prefer to invest her time elsewhere. The auditor, who gets recognized for uncovering pr..
Janet Elliot just turned 20 and received a gift of $20,000 from her rich uncle. Janet plans ahead and would like to retire on her 55th birthday. She thinks she'll need about 1$million saved by that time in order maintain her modest lifestyle. How muc..
Suppose today a 10 percent bond sells at par. Two years from now, the required market return on the same bond is 8 percent. What is the coupon rate on the bond then?
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