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Get college assignment help at uniessay writers You are chairperson of a state tax commission responsible for extablishling a program to raise new revenue through excise taxes, why would elasticity of demand be important to you in determining the products on which the taxes should be leived?

8.6 THE TRASH BAG CASE Trash Bag Consider the trash bag

8.6 THE TRASH BAG CASE Trash Bag Consider the trash bag problem. Suppose that an independent laboratory has tested trash bags and has found that no 30-gallon bags that are currently on the market have a mean breaking strength of 50 pounds or more. On the basis of these results, the producer of the new, improved trash bag feels sure that its 30-gallon bag will be the strongest such bag on the market if the new trash bag’s mean breaking strength can be shown to be at least 50 pounds. The mean of the sample of 40 trash bag breaking strengths in Table 1.9 is x = 50.575. If we let m denote the mean of the breaking strengths of all possible trash bags of the new type and assume that s equals 1.65: a) Calculate 95 percent and 99 percent confidence intervals for m. b) Using the 95 percent confidence interval, can we be 95 percent confident that m is at least 50 pounds? Explain. c) Using the 99 percent confidence interval, can we be 99 percent confident that m is at least 50 pounds? Explain d) Based on your answers to parts b and c, how convinced are you that the new 30-gallon trash bag is the strongest such bag on the market?

500–700 words calculations Details: Congress is considering a tax credit

500–700 words calculations Details: Congress is considering a tax credit program for those who purchase energy-efficient appliances. Proponents of the program have said that $400 million will be given directly to taxpayers and argue that this will have an economic effect that is greater than the original $400 million spent because of the multiplier effect. Many voters and taxpayers are not familiar with the concept of a multiplier in this sense. Your think tank has decided to produce a short report that will help voters better understand the proponents’ claims, and Gabe has asked you to write this report. Be sure to include the following in your report: Give a basic explanation of how the multiplier concept is computed, including MPC. Assume that the average American’s marginal propensity to consume (MPC) is 2/5, and American producers’ MPC is also 2/5. Calculate the following, explaining how you arrived at each result: The amount consumers will spend on new consumption The amount of new spending from producers The multiplier in this case The total increase in spending from the primary spending of $400 million Explain the multiplier concept as it applies in this case. What are the qualifications and limitations of the multiplier model? Please submit your assignment.

Why is it that, in the short-run, after a certain number

Why is it that, in the short-run, after a certain number of workers has been hired, output increases by less and less with each additional worker hired? Illustrate your answer with an example. Would there be any circumstances under which this phenomenon would not occur?

Why is it that when small firms get bigger (increase their

Why is it that when small firms get bigger (increase their scale), they frequently see their average total costs decrease?

The questions are in the document attached.

The questions are in the document attached.

Although it lacks sources of timber and oil, Chablis has a

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for their wineries. Which statement is true?? Chablis has a) a comparative advanatage in wine production b)a comparative advantage in timber and oil production c) an absolute advantage in the production of wine d) an absolute advanatge in timber and oil production e) no comparative or absolute advanatge

33. Which of the following is incorrect? A. Total fixed cost

33. Which of the following is incorrect? A. Total fixed cost does not change with output in the short run. B. Fixed costs exist only in the short run. C. Total fixed cost must be added to total variable cost to determine total cost. D. Total fixed cost equals total variable cost in the long run.

Economists in general A. Believe that they must be able to

Economists in general A. Believe that they must be able to explain people’s tastes in order to explain what happens when tastes change. B. Incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements. C. Do not believe that people’s tastes determine demand and therefore they ignore the subject of tastes. D. Do not try to explain people’s tastes, but they do try to explain what happens when tastes change.

In uncertain times, especially when the economy is experiencing a downturn,

In uncertain times, especially when the economy is experiencing a downturn, consumer spending tends to decline and savings rates tend to increase. Explain what could be done to encourage people to spend more so as to increase aggregate demand and, invariably, create employment possibilities.

Discuss the importance of interest rate expectations in financial markets.

Get college assignment help at uniessay writers Discuss the importance of interest rate expectations in financial markets.

Why might it be necessary to reduce consumer spending in order

Why might it be necessary to reduce consumer spending in order to attain faster economic growth? Would it be worth the sacrifice?

Suppose you are part of a research team evaluating at proposal

Suppose you are part of a research team evaluating at proposal to clean up a hazardous waste site. You are to charge of assessing the . Which method would you choose to derive the estimation? Explain briefly. [Students can choose any of the estimation methods discussed in the text with the exception of the Travel Cost Method, which would not be appropriate to this problem. They should be able to support their selection using both theoretical and practical considerations. They should also consider any known drawbacks to using the method. identify any possible implications, and offer their own ideas about how to minimize am problems associated with implementation.] b. Based on your selection, outline your research plan for this specific estimation problem. Be sure to identify the following in your outline: a general description of your model, the relevant market for your model, the primary variables of interest; the data requirements; and any potential bias in your results. [Obviously, the response to this part of the question will vary considerably depending upon which estimation is chosen. Students can find complete information m the text about the method they have selected. which they then must tailor to the hazardous waste site project presented in this question. The references to actual studies provided m the chapter should be of particular value in preparing the outline.]

Do you think that the United States should incorporate greater protections

Do you think that the United States should incorporate greater protections for workers against layoffs and firings? Do you believe that the legal premise of at will employment still has relevance in the modern workplace? What implications, if any, would increasing worker protections have upon the ability of American companies to compete globally? Have worker protections ultimately hurt European industries concerning their abilities to compete in the global marketplace?

Q6a) If the quantity demanded remains constant when price changes, then

Q6a) If the quantity demanded remains constant when price changes, then the price elasticity of demand is __________ and the demand curve is said to be ___________. If the %age change in quantity demanded equals the %age change in price then the price elasticity equals __________ and the demand is said to be _________. If the %age change in quantity demanded is less than the %age change in price then the price elasticity equals __________ and the demand is said to be _________. If the quantity demanded changes by an infinitely large %age in response to a tiny price change, then the price elasticity of demand is __________ and the demand curve is said to be ____________. When the %age change in quantity demanded exceeds the %age change in price, the price elasticity is _____________and demand is said to be ____________.

Consider four different stocks,all of which have a required return of

Consider four different stocks,all of which have a required return of 18 percent and a most recent dividend of $4.50 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, 0 percent, and -5 percent per year, respectively. Stock Z is a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 12 percent growth rate thereafter. What is the dividend yield for each of these four stock? What is the expected capital gains yield? Discuss the relationship among the various return that you find for each of these stocks.

Assume current equilibrium output is $6,000 billion

Assume current equilibrium output is $6,000 billion

Cartel pricing refers to the output and price choice of a

Cartel pricing refers to the output and price choice of a cartel. This choice most closely resembles that of a:

Marginal revenue is the additional revenue that companies make when they

Marginal revenue is the additional revenue that companies make when they sell more copies of Vista. Think about your answers to the previous questions. You should have found that the marginal revenue for Microsoft is different from the marginal revenue for computer retailers. The difference helps to explain why Microsoft earns higher profit margins than retailers. Every firm sets marginal revenue equal to marginal cost when making any decision. Because of the different shapes of their marginal revenue curves, the price at which Microsoft sells Vista is ________ its marginal cost, while the price at which retailers sell Vista is ________ their marginal cost.

The jenkins Tool Company estimated the following demand equation for its

The jenkins Tool Company estimated the following demand equation for its product: Qd=12000-4000P where p=price/unit, Qd=quantity demanded/year The firm’s total cost are 4000 when nothing is being produced. These costs increase by 50 cents for each unit produced. a. Write an equation for the total cost function.

Consider the following scenario: the population is composed of two types

Consider the following scenario: the population is composed of two types of agents, the “Health-ies” and the “Sicklies”. The Healthies have a good immune system and rarely catch diseases: in any given year only 1/10 of them get sick. The Sicklies have a deficient immune system and easily catch diseases: in a given year half of them get sick. The population is composed of three quarters of Healthies and a quarter of Sicklies. All agents have the same income of $60,000, incur the same cost of $20,000 if they are sick, and are expected-utility maximizers with a logarithmic (natural logarithm) utility function for wealth. Suppose that there is a large number of insurance companies so that competition drives profits to zero. Now suppose the same regulation is passed which prevents insurance companies to determine the type of their customers, but that agents, by observing their own medical history, know their own type.InsurMagic, introduces a contract where the price per dollar of insurance is only 12.5 cents but the quantity of insurance that an agent can take is limited to $4,000. Moreover the company requires exclusivity (i.e. if another insurance company reimburses part or all of the medical costs of the insured agent, InsurMagic does not reimburse anything). Explain why InsurMagic, which seemed to be such a successful company with a wide pool of customers, filed for bankruptcy soon after introducing this contract.

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