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Compare between EITC program and cash transfer welfare program in the standard income leisure model.
Explain using the income-leisure model when an unemployment benefit program is successful.
Do you agree that welfare programs must mandate working some hours as an eligibility criteria? Why?
Income taxes Hubert, a resident of Econoland, currently works 20 hours a week and earns an annual income of $50,000. The following table shows income tax rates in Econoland. Annual Income Tax Rate Up to $50,000 10% From $50,000 to $75,000 20% Over $7..
When a firm has the opportunity to add a project that will utilize excess factory capacity (that is currently not being used), which costs should be used to help determine if the added project should be undertaken?
What are the major trading regions? Why are they important? How do you see the world changing in the future based on these regions?
In December 1992, the government began requiring that food contain labels with nutritional information. The information had to be verified by independent laboratories. The price of verification was $20,000 per food item. What impact would this have o..
Policymakers sometimes propose laws requiring firms to give workers certain fringe benefits, such as health insurance or paid parental leave. Let's consider the effects of such a policy on the labor market. Why might the labor-supply surve shift in r..
The shape of Canada’s production possibilities frontier (PPF) should reflect the fact that as Canada produces more trucks and fewer cars, the opportunity cost of producing each additional truck ______
If expectations are adaptive it means that the expected rate of inflation
Firms that can identify two types of consumers can price-discriminate perfectly. Firms can price-discriminate only if there is zero competition in the market. Firms that price-discriminate will not reach higher profits.
Explain the policies that are available to the government to increase Aggregate Supply. Explain how the fractional reserve banking system creates money. What is a liquidity trap? Explain using a money supply- money demand diagram. Explain the fiscal ..
Consider the following statement. "Winter ice storms that sometimes hit Chicago are good for the economy. They create many jobs to remove downed limbs and replace trees and bushes." Do you agree that ice storms are a net benefit to the economy? To an..
Why was the Federal Reserve System set up with twelve regional Federal Reserve banks rather than one central bank, as in other countries? The Fed is the most independent of all U.S. government agencies. What is the main difference between it and othe..
In a city, the Taxi industry is regulated by the Government Taxi Authority. A company can only supply taxi services, if it is issued a licence by the Government taxi Authority. Suppose that the Government Taxi Authority issues two licenses, to Big Be..
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