Suppose that a market is initially in equilibrium. The initial demand curve is P=42-Qd. The initial supply curve is P=0.5Qs. Suppose that the government imposes a $3 tax on this market.

1. Solve for initial Equilibrium (before tax)

2. Solve for price elasticities of demand and supply at equilibrium

3.After imposition of tax solve for following. Pe1: Pd: Pes: Qe1: Consumer surplus post tax $

a). How does an increase in education affect the health production function? Explain possible explanations the literature gives about the relationship between education and health and describe the graph before and after the change.

b). People with higher education typically enjoy higher income. Using Grossman’s model for the demand for health, please explain how these differences in education and income affect the optimal level of health. Explain your graph.

d) Towards the end of WWII, many factories in Germany were bombed by the Allies. Explain what this means in the context of the Solow model. If nothing else had changed, how would this have affected the growth rates and the steady-state level of standard-of-living?

e) The Gini coefficient for before-tax income in country X is 0.30, and for after-tax income it is 0.35. How do you interpret this?

(3) Calculate the total tax paid by the company and shareholder with and without an imputation system, based on the following facts. (a) the company has one shareholder; (b) the company’s before tax profit is $5,000; (c) all after tax profit is distributed in full at the end of the income year; (d) company tax rate is 27.5%; (e) the shareholder marginal tax rate is 39% including a 2% Medicare levy.

Are the following statements true or false?

(a) The Social Security benefit formula works to the advantage of low-wage workers.

(b)Compared to those with higher earnings, on average, low-wage workers are more likely to pay thousands of dollars in Social Security taxes and then die before, or soon after, becoming eligible for retirement benefits.

(c) Social Security works to the disadvantage of groups with below average life expectancy.

A Saturn 5 third stage rocket boosts Apollo 17 (46,768 kg, 103,106 lbs) from orbital speed (7,822 m/s, 17,500 mph) to escape speed (11,174 m/s, 25,000 mph) to reach the moon. Determine the exhaust gas velocity needed for this "deltavee". Third stage booster mass by itself is 104,328 kg before and 11,249 kg after the rocket “burn”.

A box of mass 0.200 kg is given an initial speed of 2 m/s up a ramp with an angle of θ = 45° from the horizontal. The coefficients of friction between the box and ramp are μs = .7 and μk = .5 a) How far up the ramp does the box go before it comes to rest? b) Does it start to slide down the ramp after it gets to its maximum distance up the ramp?

choose two questions from the following to teach someone.

a) What should an athlete eat or drink before, during and after a workout?

b) Should an athlete take supplements like vitamins or protein powder to enhance their performance or just to feel better? Why or why not?

c) An athlete has a problem with hydration what advice would you give him/her and what recommendations to hydrate properly?

You would like to set up an annuity so that, after you retire, you can take out the interest from the maturity value every month to pay living expenses (you predit that you will need $1200 every month). If you start saving 20 years before retirement into an account paying 6% interest, how large of a monthly payment will you need to make?