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1. Would a dynamic approach to taxation be more likely to lead to economic growth than the static approach in a country with a falling tax base? What about in a country with a growing tax base? 2. If free riders cannot be excluded from consumption of a good at a reasonable cost, is this a public good? 3. Should everyone else be taxed in order to provide you with free movies? 4. The U.S. government decides to remove all restrictions on drug imports and as a result there is an increase in the number of deaths due to adverse selection. Is this the same result as with a negative externality? Could a solution to the asymmetric information problem be the same as with a negative externality? 5. What is a tax cartel and how would it effect your ability to evaluate the relative production costs among firms in a given industry that are conducting business within countries belonging to the tax cartel? 6. Why is it important for less developed countries to protect intellectual property rights? Is there any incentive for a less developed country to choose not to protect intellectual property rights? 7. City officials contract with organized crime to clean up a polluted area but instead of taking the pollution to a designated dump site that is farther away the crime syndicate dumps the pollution in the local river. Does the intersection of the increasing marginal cost of pollution abatement and the diminishing marginal benefit of pollution abatement produce a socially desirable outcome?
Describe how the consumer price index and the inflation rate are calculated. Why is it thought that the consumer price index, as presently calculated, overstates the rate of inflation?
Assume an economy is closed. According to classical economic theory, explain what will be the long run effects of an increase in taxes. You may want to organize your answer around these three parts: A) Aggregate Supply/Output (includes a discussion o..
Autocorrelation does not bias the parameter estimates, however, few econometricians would trust parameter estimates derived from models with auto-correlated residuals. Why?
Mirk Labs is a pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the United States on Zatab, an allergy medication. The global demand for Zatab is: Qd = 15.0 0.2P where Qd is annual quantity demanded (in millions o..
Why the long-run aggregate-supply curve is vertical. Three theories for why the short-run aggregate-supply curve is upward-sloping.
How does the concept of capabilities to function' help us gain insight into development goals and achievement? Explain its contribution in measuring level of development.
Discuss whether perfect competition is more efficient than regular unregulated monopoly, regulated monopoly, and natural monopoly? Justify your answer using real world examples.
Your cousin wants to start his own business, and he is in a hurry. He has decided not to write a marketing plan because he thinks that preparing such a document would take too long. He says he doesn’t need a formal proposal because he has already rec..
Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay. If both play the strategy leave, then each gets a payoff of $300. For which values of C and/or D is the outcome (leave, leave) a Nash equilibrium?
Research, identify and discuss some of the environmental issues faced by business and society as well as at least two strategic approaches organizations are using to respond to these issues.
Jill plants flowers in her yard to supply a local florist. Her neighbor enjoys the flowers. Therefore: Question 3 options: Jill should stop planting flowers because her neighbor does not pay for the benefit he gets. Jill should not plant flowers beca..
q.there are two countries- home and foreign. suppose that the production of vacuum cleaners exhibits external economies
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