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There are three individuals in a community that is deciding whether to unveil a statue of Elvis. Individual 1 would receive a net benefit of 25 if the statue were unveiled. Individual 2's net benefit would also be positive and would be 20. Individual 3, however, would be very disturbed by this unveiling and would receive a negative net benefit of –50. If the community uses a "Clarke tax" to decide whether to undertake this project (note that the project has 0 cost), will the project be undertaken? What will be the Clarke tax paid by each person?
Suppose the own price elasticity of market demand for retail gasoline is -0.9, the Rothschild index is 0.3, and a typical gasoline retailer enjoys sales of $2,350,000 annually. What is the price elasticity of demand for a representative gasoline reta..
One disadvantage of the skimming pricing policy for new products is that
Other things being equal, explain the effect each of the following situations will have on either the demand or supply of corn. Explain also what the effect will be on equilibrium price and quantity. a. corn is now considered by doctors to be the mos..
If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant? (Assume the price level stays constant.) Suppose real GDP is currently $12.5 trillion and potential real GDP is..
Large producers of ham and pork food products require a steady supply of pigs over a long period of time to operate efficiently. Is vertical integration into pig farming needed to maintain that steady supply?
For retirement, you decide to deposit $1329 at the end of each year and you will increase your deposit by $105 per year. How much will you have at the end of 20 years if the bank pays 2.5% compounded annually?
Next, describe how the world has changed in terms of global trade in the past 10 years. Based on the assigned readings, what do you think developed countries such as the United States, Japan, Germany, and England will face in terms of competition fro..
q.lets say that you own a restaurant with 3 employees and you are trying to decide between two different production
In the late 1990s, the U.S. economy consistently saw increasing wages and increasing worker productivity. If wages rise, how does aggregate supply change? If productivity rises, how does aggregate supply change?
Loan amortization and EAR You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 11% with interest paid monthly. What will be the monthly loan pa..
If the U.S. and Japan trade different versions of cars and the U.S. enact trade barriers against Japanese car imports, what will happen to the level of Japan's horizontal foreign direct investment in the U.S.? Why?
Fiscal policy refers to change in
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