1. You are assigned two tasks. In the first, you are asked to project tax revenue for a city government under the assumption that current tax rates are left unchanged. In the second you are asked to forecast the revenue increase that would result from increasing the tax on automobiles garaged in the city. You want to use regressions to answer these two questions
   1. Would you need to be concerned about the exogeneity of your right-hand-side variables in one, both or neither of the projects. Explain.
   2. What time-series technique would be appropriate for projecting revenue assuming there are no changes to the tax rates? What steps are involved?

1. If the price of good X decreases and nothing else in the economic environment changes, what will most likely happen to the quantity demanded? (Multiple Choice)

   1. The most likely result is that the quantity demanded of X will decrease.

   2. If the demand function is Q = 25P-1 consumer expenditure and quantity demanded will be unchanged.

   3. In the rare circumstance that the good is a Giffin good, the quantity demanded will increase.

   4. Total consumer expenditure on good X will increase.0

   5. None of the above.

Earnie sells lemonade at a busy street corner in Rollaville. His production function is f(x,y) = x^1/4*y^1/2 where output is measured in gallons, x is the number of pounds of lemons he uses, and y is the number of labor-hours spent squeezing them. The price of a pound of lemons is $1 and the wage rate for the lemon-squeezer (Earnie’s best friend, Bert) is also $1. While Earnie can hire Bert for any amount of time, he has only three choices of amount of lemons available to him: 1 pound, 16 pounds, and 81 pounds.

(a) Does Earnie’s production process exhibit increasing, decreasing, or constant returns to scale? SHOW your work.

(b) Suppose that Earnie has decided to use exactly one pound of lemons. What are his average cost and marginal cost? Denote them as AC1 and MC1, respectively. Find the minimum point of AC1. (REMINDER: If the total cost function is given by c(q) = Aq2 +B, where A and B are constants, then the marginal cost is MC(q) = 2Aq.)

(c) Repeat with 16 pounds of lemons and find AC16 and MC16. Find also the minimum point of AC16.

(d) Repeat with 81 pounds of lemons and find AC81 and MC81. Find also the minimum point of AC81.

(e) Find the range of output (lemonade) where AC16 is the smallest of the three average costs.

(f) Find the range of output (lemonade) where AC81 is the smallest of the three average costs.

(g) Use your answers to (b)–(f), draw average costs and marginal costs. In addition, indicate Earnie’s “long-run” average cost curve when only these three different amounts of lemons are available to Earnie. Make sure your graphs contain (1) minimum values of each of the three short-run average costs and (2) output quantities that you found in (e) and (f).

Specifically need E, F, & G. Thank you in advance.

why are governments involved in trade disputes?

In the short run, the entry of firms will result from ___________________.

In the short run, the exit of firms will result from ______________.

In the long run, there will be _______ economic profit.

Triple Equality is when _____ = minimum ______ = ______

The term productive efficiency means ______ = _______. This is important because _________________________.

The term allocative efficiency means _____ = ________. This is important because __________________________.

Write a conclusion to the topic "Injustice to the American system" and include the sources

Consider a market for which aggregate inverse demand is ? = ? − ?? and total cost for each firm is ??(?) = ?? where ?, ? and ? are positive constants.

a. Derive the equilibrium values ? ∗ and ? ∗ if the market is characterized by perfect competition.

b. Derive the equilibrium values ? ? and ? ? if the market is characterized by monopoly.

c. Derive the equilibrium values ? ? and ? ? if the market is characterized by an ?-firm Cournot oligopoly.

d. Show that the Cournot oligopolistic outcome, in terms of ? and ?, coincides with the monopolistic outcome when ? = 1 and approaches the perfectly competitive outcome when ? → ∞.

Tasha is choosing between 3 job offers. Job 1 is a salaried position that will pay $50,000 with certainty. Job 2 is also a salaried job that pays slightly less, $48,400, but also includes a 50% chance that she will get a $4,500 bonus at the end of the year. Finally, Job 3 is paid on commission. Tasha expects that with probability 0.75 she will earn $62,500 and with probability 0.25 she will only earn $40,000.

a) Calculate the expected value of each job offer.

b) Which job is the riskiest choice for Tasha?

c) If Tasha is risk neutral, which job offer will she take?

d) If Tasha is risk loving, which job offer will she take?

Suppose Tasha’s utility function for income is given by  U=the square root of I

e) Calculate Tasha’s expected utility from each job offer.

f) Which job offer will Tasha choose?

g) What is Tasha’s risk premium for Job #3?

Many experts state that video is the future of content marketing. Do you agree with this statement? Why or Why not? What are the Pros and Cons of this type of (video) content? Again, be sure to include information from the supplemental materials provided to you for this case to support your answer.

Explain the potential effects on the economic growth rate from a substantial increase in the number of skilled people of working age entering a country. use graphs

Regarding conventional factors of production (capital and labor) and technology

a. Explain why conventional factors of production are considered rival, and hence exhibit high degrees of excludability

b. explain why technology is considered non rival, and hence exhibits low excludability

Is trade likely responsible for growing inequality across countries?

A sequential game A local bee-keeper derives net revenue z(h) from choosing a level of production (number of hives) h given by z(h) = 4h − 2h 2 .

A nearby apple farmer also benefits from being next to the bee-keeper, because the bees help to polinate fruit trees. The value of the bees to the apple farmer is given by y(h) = 12h − 2h 2 .

(a) Show that the bee-keeper maximizes their net benefit by choosing h = 1, while the sum of benefits, y(h) + z(h), is maximized at h = 2.

(b) Suppose that the government has the power to impose a transfer from the farmer to the bee-keeper in amount t. The level of t is chosen after the bee-keeper decides on h. Additionally, the government wishes to maximize the sum of the logarithms of the payoffs of the the two parties, so that it solves max t ln(12h − 2h 2 − t) + ln(4h − 2h 2 + t).

i. Show that by choosing t taking h as given, the government optimally sets t = 4h.

ii. Show that this transfer scheme leads to the bee-keeper wishing to maximize z˜(h) = 8h − 2h 2 .

iii. What level of h will be chosen by the bee-keeper if they anticipate this payment? Show your reasoning.

(c) Would your answer to part (b)(iii) change if the government put less weight on the bee-keeper’s utility so that it solved, instead, max t ln(12h − 2h 2 − t) + 1 2 ln(4h − 2h 2 + t) ?

Justify your answer.