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A presidential candidate is concerned that Americans create too much pollution by driving excessively. She proposes issuing a fixed number of tradable driving permits each month. Each permit would be good for 100 miles during that particular month. Each adult citizen would receive the same number of permits. People would be free to buy and sell their permits. Those who drive more than the amount allowed by the permits they retain or purchase would face stiff penalties. Enforcement would involve periodic odometer checks. What are the advantages and disadvantages of this proposal? Is it workable? How does it compare to a gasoline tax?
If a minimum wage of $7 an hour is set for teenagers, what are the quantities of employment and unemployment. If a minimum wage is set at $7 an hour and demand increases by 500 hours a month, what is the wage rate paid to teenagers and how many ho..
Suppose the Federal Reserve's trading desk buys $500,000 in T-bills from a securities dealer who then deposits the Fed's check in Best National Bank. Use a balance sheet to show the impact on the bank's loans.
The United States, at the point where it is currently producing, must give up the production of 300 motorcycles to produce 15 additional SUVs with the same resources. Which of the following is the opportunity cost of producing 100 motorcycles
where Q is the quantity demanded of its product, P is the price of its product, Pr is the price of its rival product, and I is per capita disposable income. At present, P=$10, Pr=$20, and I=$6000
Once everyone in the group has reported on the possible tax consequences, build on one another's ideas until, as a group, you have fully fleshed out the advantages and disadvantages of each approach to Bob's situation.
The EPA tests vehicles for gasoline mileage under stringent testing conditions. The testing for a particular make and model of mid-sized SUV involved 35 vehicles submitted by the manufacturer. Assume the vehicles submitted for testing constitute a..
The Do-Drop-Inn, Inc., provides vacation lodging services to both family and senior citizen customers. Yearly demand and marginal revenue relations for overnight lodging services, Q, are as follows: Family PF = $40 - $0.0004QF MRF = $40 - $0.0008Q..
suppose the economy is in equilibrium and the equilibrium real GDP is 1500 billions. Suppose further that the MCP is 0,8 if the government wants to increase the real GDP to 2000 billions , by how much should the government increase /decrease.
Does a monopolistic competitor produce more or less output as compared to an efficient level of production Explain. What are the benefits and drawbacks of this Should the government intervene to alter this
if the rate discount is 20 percent, A. would you rather receive $ 100 today or $ 120 in one year B. would you rather receive $ 205 today or $ 240 in one year C. would you rather receive $ 500 in one year
Sonic Boom Corporation sells drum sets. At a price of $600 per set, they sold about 500 sets per month. The new general manager for this product, Eli Sticity, decided that the company needed more revenues and increased the price to $700 per set.
What is the probability that at least half of the rooms are occupied on a given day (to 4 decimals)? What is the probability that 100 or more rooms are occupied on a given day (to 4 decimals) What is the probability that 80 or fewer rooms are occup..
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