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1. Is gross domestic product an accurate measure of the standard of living? Why or why not?
2. Describe the effect on GDP, unemployment, and inflation of each of the following:
(a) war, (b) elimination of environmental regulations, and (c) cuts in welfare benefits.
3. Do you believe in the trickle-down philosophy?
4. Consider other proposals to replace the federal income tax structure with a flat tax structure or a national sales tax. How would these alternative tax proposals affect income distribution?
5. What type of tax structure is the "fairest." What, if any, alternative tax structure would you propose to replace the federal income tax?
Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate.
Consider the market for electricity. Suppose demand (in megawatt hours) is given by Q=50-p and that the marginal private cost of generating electricity is $10 per megawatt hour (p is the same units). Suppose further that smoke is generated in the ..
Sp represents personal savings. This money does not go into the economy. So why is it counted in this formula?
Because the structure of the personal income tax is progressive, a larger share of income is taxed at higher rates as real income increases. Therefore, economic growth automatically results in higher taxes unless offsetting legislative action is d..
Derive the equation for output per effective worker y = Y/EN = f(k), where k equals the amount of capital per effective worker. or calculate the steady state levels for each.
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
When output is too low, what is needed is an increase in demand for goods and services. Investment is one component of demand, and saving equals investment. Therefore, if the government could just convince households to attempt to save more, then inv..
1.A minimum of three general economic principles related to the recent article not older than six months. 2.Identification of five macroeconomic indices 3.Explanation of the indices e.g., GDP, CPI, and other economic calculations
Suppose you are running the food concession at the athletic events for your college. You sell hot dogs, colas, and potato chips. What are your inputs of capital, labor, and materials If the demand for hot dogs declines,
The assignment problem pertains to recent macro-economic trends in the world. The report is an in-depth analysis on European Monetary Union's role in the bailout package issued to Spain and Greece.
People of different age groups and situations take advantage of part time employment opportunities provided through the fast food industry.
Tom total revenue from cafe is 50000 per year, he bought a coffee machine costing $5000 an interest rate of 5 percent and $3000 is a loan from the bank which the rates is 10%
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