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Question: The fiscal problem of the twenty-first century:
(a) What is this problem? Is it limited to the United States?
(b) To what extent is this fiscal problem driven by the Social Security program? By how much would taxes have to rise as a share of GDP in order to "solve" the Social Security problem?
(c) How do you think the fiscal problem will likely be solved?
(d) How would you suggest the problem be solved?
What are two arguments against productivity growth as an explanation of the large U.S. current account deficits.
Show that if oil is produced from two reservoirs, one with high marginal cost and one with low marginal cost, it is not possible for the Hotelling rule to be satisfied for each reservoir simultaneously. Give two reasons that oil might be produced ..
An enduring debate among public finance economists concerns the desirability of individual or family-based taxation. Assuming that we want a tax system that is progressive, marriage-neutral, and satisfies horizontal equity. Using a simple example..
Raider Inc., an American importing firm anticipates an outflow of ¥893 million in 6 months. Raider's management team is worried about the course of the ¥/$ exchange rate over the next 6 months and decides to hedge.
Why is it incorrect to advertise up to the point that the last dollar of advertising expenditures generates another dollar of sales? What is the correct rule for the marginal advertising dollar?
Calculate the present discounted value of each career path at a discount rate of 5% and at a discount rate of 15%.
The Better bilt Construction Company designs and builds residential mobile homes. The company is ready to construct, in sequence, 16 new homes of 2,400.
The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 250,000 gallons per year is $3 million.
If everyone were to obtain music and video content for free from websites such as MySpace, instead of paying Universal, what would Universal’s producer surplus be from music sales? What are the implications for Universal’s incentive to produce music ..
Welcome to Accenture, we are happy to have you join our public sector consulting arm. The Senate Banking Committee is considering a limit placed on what automated teller machine (ATM) owners can charge in terms of usage fees. Currently, the n..
What monthly CPI does a UW-Madison student face? Below are 10 items I found myself purchasing at Woodman's on Sunday: 24oz box of Honey Bunches of Oats and 3 16oz boxes of Barilla Pipette Pasta
You are given the following budget data for a country that has both a central government and local governments. Central purchases of goods 500Local purchases of goods 250Central transfer payments 200 Local transfer payments 100
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