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Government is known to utilize a product's elasticity measures to set taxes and subsidies. Use this information to set policy on one of the following products: tobacco products, petroleum products, agriculture products, or medical products according to your goal. Research the government's tax/subsidy policy in these areas and any objectives of the tax policy.
State your goal, your prescribed action, and why you believe it will work using the information you found.
Draw a supply/demand diagram of the market for "loanable funds" in the U.S. Use the "interest rate" as the "price" of loanable funds on your diagram. Show the effects of a rise in the expected inflation rate on your diagram.
Select a model that you have some experience with and determine what types of specification errors you might encounter. Provide examples to support your response.
Is the market for coffee perfectly competitive and does the coffee market meet all six conditions of a perfectly competitive market?
The production engineers at Impact Industries have derived the optimal combinations of labor and capital (the only two inputs used by Impact) for three levels of output: 120, 180, and 240 units of output:
Unemployment in the labor market is increased by forces that keep wages from falling to the equilibrium level. Other than efficiency wages, unionism, and minimum wages, what other factors might cause this wage stickiness?
In the absence of a quota, what is the equation for the total supply of wine? Show your work - what are the equilibrium price and quantity of wine? Show your work.
State and explain the law of diminishing marginal utility and do the same for the law of diminishing returns and identify and explain two similarities and two differences between these two laws.
Suppose that full employment GNP (FE Y) is = 4000 A. Explicitly find the necessary change in G to get the economy to full employment GDP. B. Explicitly find the necessary change in Taxes to get the economy to full employment GDP.
Mitchell Electronics produces a home video game that has become very popular with children. Mitchell's managers have reason to believe that Wright Televideo Company is considering entering the market with a competing product.
A function of government is to regulate natural monopolies. Describe what is a natural monopoly and why it needs government regulation
What might shift the aggregate-demand curve to the left Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the price level.
Assume that a very competitive start-up enters the market in direct competition with the oligopoly you described in the e-Activity, initially gaining a 12% market share.
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