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Discuss whether each statement below is true, false or uncertain. Be sure to completely explain why, making use of appropriate equations, diagrams and so on. (a) A fall in the marginal cost of production of a monopolized good on which is levied a tax at the rate of 10% of total sales revenue will increase total tax revenue. (b) Under the two-period intertemporal consumption framework, assume that in an original lifetime plan, a person is initially a saver at the original lifetime interest rate of r(a). Then, if the interest rate is revised to a higher value, r(b) (i.e. r(a) < r(b)), the person will definitely increase the amount he saves under his new lifetime savings and consumption plan. (c) In the two-goods, i.e. leisure and "all other goods (denoting them as G)", labor-supply framework, a rise in the price (denoting this as p) of G will definitely lead to an increase in the optimal hours of work chosen by a consumer.
A company operates plants in both the united states(where capital is relatively cheap and labor is relatively expensive) and Mexico(where labor is relatiely cheap and capital is relatively expensive). A. Why is it unlikely that the cost-minimizing ..
Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.
Watch the movie “A Beautiful Mind”. Pay attention to the scene where Nash argues for an optimal equilibrium (the bar scene). Would you say that his “equilibrium” constitutes Nash equilibrium? Explain.
Suppose Corporation X deposits $80,000.00 in cash in commercial bank Y. If no excess reserves exist at the time this deposit is made and the reserve ratio is 30%,
There are two types of consumers of potatoes: 10 are rich and 50 are poor.Interpret the differences between the demand of the rich and the demand of the poor.
Important information regarding calculating elasticity for each of the given variables
Please give some data on unions from the employee's perspective. Discuss some advantages of a unionized organization
In an expansionary fiscal policy to overcome current recession, the Federal Government increases its expending to improve the nation's physical infrastructure
For a developing country to increase, it needs capital. The major source of capital in most nations is domestic saving, but the target of stimulating domestic saving usually is in conflict with the government policies targeted at decreasing inequalit..
Explain why the Aggregate Supply curve becomes increasingly steeply sloped at levels of RGDP near "full employment" and becomes especially steeply sloped beyond "full employment" RGDP (hint: this topic is not discussed in your text. you will need ..
Illustrate what is your prediction about the economic health of each economy over the next few years.
The government imposes a fixed fee per year on each firm operating in a competitive market.
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