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In many countries the capital owned by nonresidents is taxed. What are the effects of such tax exporting? Is it profitable to subsidize capital owned by nonresidents?
Should the welfare of tax evaders be included in an assessment of social welfare? What if their inclusion implied that tax evasion should not be punished? Would you provide the same arguments for violent crimes?
Suppose that each firm that tries to produce autos must go through the shakedown period of high costs on its own. Under what circumstances would the existence of the initial high costs justify infant industry protection?
What are the consequences for the output gap in the long run?
How does a minimum wage imposed under monopsony differ in results as compared with a minimum wage imposed under perfect competition? (Assume the minimum wage is above the market-determined wage.)
Newton exports all their products outside the city and Garfield only sells their products within the city. Newton experiences growth, so it hires 100 more workers, all of whom come to reside in city A. Because of this, Garfield - at the first stag..
Do these assumptions, in your opinion, bring the model closer to or further from the world as you know it?
Prove that a uniform standard will not meet the cost-effectiveness criterion.
Computer Products Corp. sells peripheral equipment used by both private businesses and the government. Due to a recession, Computer Product's sales have declined by 100,000 units and it now has 200,000 units of excess capacity.
two people live alone in isolated regions, have the same resources, grow potaotes and chickens, if one devotes resources to growing potatoes they raise 200 lbs a year. if they grow chickens they raise 50 a year. if they apportions some resourcs to ..
Bob and Dexter share a dorm room. Bob is a smoker but Dexter does not smoke. There are no laws that prohibit smoking in the dorm rooms. The benefit of smoking is worth $250 to Bob, but the smoke imposes a $500 cost on Dexter.
Furthermore, the number of capitated enrollees has changed over the budget period. In order to calculate the volume variance and break it down into enrollment and utilization components, how many flexible budgets must be constructed?
The marginal products in each country are equal. Then, the poor country experiences political instability such that investors require a risk premium to invest in the poor country.
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