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The chapter frames the issue of the effects of taxation in terms of its effects on producer and consumer surplus.
a. What does that framework leave out of the analysis?
b. How might one frame the analysis differently?
c. If women are discriminated against and receive less income than men on average, do they get less weight than men in consumer surplus? (Feminist)
Global Investment Group operatesin a perfectly competitive industry with the following Cost andRevenue data Average Total Cost = $2.50; Quantity sold =9000 Units; Price Per Unit = $3.50; Marginal Revenue = $3.50;Marginal Cost = $3.50:
Suppose the market demand function for ice cream is and the market supply function for ice cream is , both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream.
Currently there are zero excess reserves in the U.S. banking system. If the required reserve ratio is 20 percent and the Fed sells 20 million in bonds, the maximum amount that the money supply can change is what
Frisbees are produced according to the production function q = 2K+L where q =output of frisbees per hour, K =capital input per hour, L =labor input per hour. a) If K = 10, how much L is needed to produce 100 frisbees per hour
What is the annual compounding interest charged? Using the compounding annual interest rate from above, what is the nominal, period interest rate and corresponding effective interest rate if compounding is hourly? Assume 30 days per month.
Of the random variables (Y*, Y, X) only the pair (Y, X) are observed. (In this case, we say that Y* is a latent variable.) Suppose E(Y*| X)= Xβ and Y = Y* + u, Find the asymptotic distribution of √n(βˆ - β). as n →∞
If you were running the donor government, and wanted to encourage more local spending on immunizations for children, what kind of grant would you devise? Why? How might your answer be different from the perspective of recipient governments?
Find the poverty line for families of two, three, and four under both values of the scale factors 0.25 and 0.75.
Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 60 percent chance the market will be $100 and a 40 percent chance the mar..
calculate the opportunity cost for chris, andrew and stuart if they have to opt between travelling by bus, at 3 hours for $20 OR PLANE FOR $100 IN 30 MINUTES, onsidering that each earn $12, $5 and $10 an hour
Draw a scatterplot of the stock price against earnings per share. Determine the coefficient of determination and interpret its meaning. Using α = .05, develop a regression model.
Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness. What is the optim..
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