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Citizen groups that monitor taxes paid by different corporations often complain about the low average tax rates that some corporations, especially those engaged in extensive leasing, pay. Is this allegation 'fair"? Who may really benefit from such leasing?
Assume that the John Smith, the manager of marketing division of Chevrolet at GM, estimated the given regression equation for Chevrolet automobiles:
Find a stable matching π' determined by the DAA when the Ms propose (Show the process). Is the matching π' efficient? Explain.
Use a supply-and-demand diagram to explain why, and discuss the effect on the number of people employed.
Draw demand-supply graphs of the labor markets for high-skilled and low-skilled labor to explain what happens to the equilibrium wage rate of low-skilled labor, the equilibrium wage rate of highskilled labor, and the number of high-skilled workers..
What are the equilibrium price and quantity e. What happens to equilibrium price and quantity if other things remain the same as in part d but income increases to $52,000 f. What happens to equilibrium price and quantity if other things remain the ..
Suppose instead of finding out about contract cancellation after it builds the plant, the firm finds out about cancellation before it builds the plant. Draw a new decision tree corresponding to this new sequence of decisions and events. Again assu..
In the name of Simon Kuznets is the concept that the relationship in GDP and inequality is nonlinear. Kuznets hypothesized three phases in economic development.
In a competitive market, all firms have cost-functions C(y) = y^2 + y + 4. The market demand function is Q = 112-2p. Initially there are 40 firms. (a) What is the market supply function (b) What is the market price and quantity in the short-run
Suppose that a bank's customer deposits $4,000 in her checking account. The required reserve ratio is 0.25. What are the required reserves on this new deposit. What is the largest loan that the bank can make on the basis of the new deposit.
He is considering an additional activity expected to increase his adjusted gross income. If this increase is 16000 and there should be no charge in non business deductions or exemptions, what will be the increase in his federal income tax
Suppose you inherit $10,000 and decide to use the money to start a lawn-care business. You purchase a truck and a mower for $10,000 and start mowing lawns. Your annual cost for fuel and other supplies is $2,000.
Provide an estimate of the cross-price elasticity of demand for gasoline, both with respect to new cars and with respect to used cars. Are these estimates statistically significant? Do they align with economic theory? Give an interpretation of y..
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