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Problem
Imagine that, faced with budget shortfalls, a government changes its current policy of granting tax credits based on family size to a flat rate tax credit for a family with one or more children.
a. Over time, what will happen to the average age in the population?
b. Over time, what will happen to the size of the workforce?
What amounts of the inputs x, y and z should a firm use to maximize output if it faces the production function Q = 2x0.4y0.2z0.6 and it has a budget of £600.
Describe how high entry barriers into a market will influence long-run profitability of the firms. Explain the competitive pressures that are present in markets with high barriers to entry. Explain the price elasticity of demand in each market struct..
Find an example of price discrimination and report at least two prices for the same product that demonstrate this price discrimination. Describe the different markets, indicating how they are able to be separated. Is the distinction of one market fro..
Define what the Federal Reserve Bank is, how is it managed? Who runs the Fed and what role does it place in the economy? What role does International Economics play in development and global markets?
Explain the environmental Kuznets curve. What does it show? How is it constructed? Is it really useful in predicting the path of environmental d degradation and recovery an hypothetical country is on?
As the skill level (and therefore earnings rate) of, say, an architect, computer specialist, or chemist increases, what happens to his or her opportunity cost of doing other things? How is the time spent on leisure likely to change?
An investor with assets of $10,000 has an opportunity to invest $5,000 in a venture that is equally likely to pay either $15,000 or nothing.
Critical Thinking: Last year Congress passed a bill creating a new national health care system that is not yet fully explained. What principles of economics relate to this decision Describe how each relates and what issues must we consider.
The following are the approximate U.S. market shares of dissimilar cigarette companies: Altria, 47 percent; Reynolds American, 26 percent; Imperial, 5 percent; Lorillard, 14 percent; total for all other brands, 8 percent. Suppose “all other brands” e..
Consider a consumer with preferences over newspapers (x) and books (y) that can be represented by the quasilinear utility function u(x,y)=x+2sqrt(y)
Analyze this replacement problem for a planning horizon of one to five years and recommend a decision to the management of SSI.
A manager of Paris manufacturing which produces computer hard drives, is planning to lease a new automated inspection system. Suppose annual demand is 8000 units. Should the firm lease the new inspection system?
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