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Voters in the State of California decide that the tobacco industry is having too great an impact on the outcome of local referenda limiting smoking in public places. To curb the influence of that powerful lobby, so that the fate of the legislation is more clearly reflective of the will of "the people," they pass a law prohibiting firms in the tobacco industry and tobacco industry associations from
(a) purchasing advertising related to smoking-related referenda, and
(b) making cash contributions to organization involved in campaigns related to antismoking legislation.
Several tobacco firms challenge the law. What is the constitution basis for their challenge? Why will they be likely to succeed or fail?
To explore the implications of this view, suppose that an economy consumes all wage income and saves all capital income. Show that if the factors of production earn their marginal product, this economy reaches the Golden Rule level of capital.
Suppose you win a lottery, and your after-tax gain is $40,000 per year until you retire. As a result, you decide to work part time at 32 hours per week in your old job instead of the usual 40 hours per week. Calculate the annual income effect on hour..
Illustrate what factors do you use to determine whether to invest in the additional capital and labor.
Markets tend NOT to generate a socially desirable outcome when:
Describe the business and, utilizing the concepts of unit and the earlier units, discuss - what costs you would incur;
q1. law of diminishing marginal utility some restaurants offer all you can eat meals. explain how is this practice
it can sell its output for $25 each. Illustrate what is break-Explain how your work both graphically and algebraically.
Compare the marginal benefits and the marginal costs associated with your purchasing decision. Explain how the strength of the economy as a whole affected the marginal benefits and the marginal costs associated with that decision.
Which is true about Medicare?
A December 2007 issue of The Economist contained the following quote in an article about Germany: "The government has just chopped the payroll tax that finances unemployment insurance, which should encourage employment." Comment on this statement,..
During hard times what should be done to encourage people to spend more so as to rise aggregate demand and invariably, create employment possibilities.
Illustrate how do you think this would affect household spending on goods and services.
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