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An excise tax may be imposed on a commodity in order to raise revenue for the government, or in order to reduce the consumption of the good.
a) Why are these goals in conflict with each other?
b) What is the relevance of the price elasticity of demand in determining which of the goals is likely to be most fully met?
c) Why do you think excise taxes on gasoline, tobacco, and alcohol are common?
Describe the optimal method for procuring a modest number of standardized inputs that are sold by many firms in the marketplace.
Suppose that this price cut was completely responsible for its raise in revenues from 460 million yen in 1966 to 640 million yen in 1967. Compute the indicated arc elasticity of demand.
Utilizing a supply and demand analysis, what would placing rent controls due to the number of apartments accessible for low-income individual.
According to CPI's estimation and in context of valuation of the major consumer products firms, do you believe analysts think the company is undervalued?
Assume that, in a perfectly competitive market at the profit maximizing quantity, the market price is greater than average total cost.
Do these firms have an incentive to reduce their pollution? Explain with diagram. d. Modern economists suggest 2 solutions to the pollution problem above. Explain how a pollution tax (use diagram) and an emission permit trading scheme can both "so..
In 2008, AIG was at risk of declaring bankruptcy and defaulting on its debt. As a result, the U.S. government stepped in and provided funding for AIG, essentially insuring creditors that they would recieve their debt payments. After the government..
Illustratr what is the Keynesian solution to a recession or depression. Explain how does the Keynesian multiplier work.
Prove that a diminishing marginal rate of substitution either implies nor is implied by diminishing marginal utility.
In light of the theory of comparative advantage, "Are Any Restrictions On Free International Trade Advantageous. Discuss comment on the current issue of "Exporting Jobs".
Assume the US economy experiences deflation. Trace through the impact on the US macroeconomic variables to the effect on the FOREX rates.
Prepare a table/graph for inflation in "your country" (use North Korea for the country; if no data is available, use India) for about the latest ten year period for which you have data.
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