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Suppose the average household in a state consumes 800 gallons of gasoline per year. A .20 tax is introduced coupled with a $160 annual tax rebate per household. Will the household be better or worse off?
P is the price measured in a common currency used in both countries, such as the Thai Baht. Now assume that free trade occurs. The free-trade price goes to 56.36 Baht. Who exports and imports cameras and in what quantities?
Jane receives utility from two goods, goat’s milk (m) and strudel (s), according to the utility function: Show that increases in the price of goat’s milk will not affect the quantity of strudel that Jane buys; that is show: ∂s/∂pm = 0.
Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource difference..
botco, inc. is constructing remote-controlled cars to sell to hobbyists. After doing some analysis, botco's chief economist reported that, at the current level of output per month, the marginal benefit for making remote-controlled cars exceeds the ma..
Arian is about to borrow $2,587.11 from his uncle. He has an option to repay the loan at the end of year 4 with 3.11% simple interest per year or with 6.8% interest per year, compounded annually. What is the difference of the total interest paid over..
Large-scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face the problem o..
Provide an example for each about decision-making, interaction and workings of economy. Explain how that influences marginal benefits and marginal costs associated with decision to purchase a house.
q. hero nakamura is ceo of the cola king bottling company a small regional producer operating in the pacific northwest.
Explain how does the subsidy affect consumer surplus, producer surplus, tax revenue, and total surplus. Does a subsidy lead to a deadweight loss. Explain
Sam musso is planning to retire in 15 years. he can deposit money at 8% compounded quarterly. What deposit must he make at the end of each quarter until he retires so that he can make a withdrawal of $45,000 semiannually over five years after his ret..
q1. assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run. if price
A firm produces output according to a production function: How much output is produced when K = 2 and L = 3? If the wage rate is $40 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 4 units ..
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