Why is gasoline taxed heavily?

Q: Using any relevant information below, calculate GDP via the expenditure approach. Inventory investme...

A: Under the expenditure method approach of measuring GDP, the economist tries to sum up the expenditur...

Q: What are some of the disadvantages of China’s peggingthe yuan to the dollar?

A: Pegging currency refers setting a specific fixed exchange rate for one country’s currency to another...

Q: A booming economy in Europe this year leads to an unexpected increasein the demand by European consu...

A: ANS If an economy is booming then the demand in that economy will be higher, if an economy in Europe...

Q: What is the economic meaning of the vertical gap between the investmentcurve and the depreciation cu...

A: The Solow Growth Model is an exogenous model of economic growth that analyzes changes in the level o...

Q: Why was the Federal Reserve System set up withtwelve regional Federal Reserve banks rather than onec...

A: The federal reserve system of the Fed is the central banking system of the United States, comprised ...

Q: Debt-GDP ratios and economic crises: Te debt-GDP ratio in Belgiumexceeded 120% in the early 1990s an...

A: The debt-GDP ratio in Belgium exceeded 120% in the early 1990's and still the economy didn't experie...

Q: Which of the following is the number of cars available at equilibrium ? Select one: a. 3600 b. 60 с....

A: Equilibrium is a point in a market where the quantity supplied of any good is equal to the quantity ...

Q: Do you believe economic principles, like competition, apply in both private and public organizations...

A: The competition is the main feature that keeps the economy active and encourages the research and de...

Q: What are the advantages and disadvantages of havingthe IMF as an international lender of last resort...

A: The International Monetary Fund is a global organization whose goals are to promote the world trade ...

Q: 1. Explain the main drivers of the new economy.  Not copy paste answer provide gives in own your wor...

A: The major drivers of new economy are technology, globalization and market deregulation. The role the...

Q: What are public goods? How may they be reflected in house prices?

A: Public goods are non-excludable and non-rivalrous. Public goods are goods that can be consumed by ma...

Q: The US government reduces the tariff on imported coffee will this affect the supply or the deman for...

A: A tariff is a tax imposed by a country on the goods and services that are imported from another coun...

Q: Draw the demandand supply curves forthe bond market, andidentify the equilibrium interest rate.

A: The equilibrium interest rates for bonds can be determined when demand for and supply of bonds are e...

Q: Why does the scale of the market—the number of copies the frm couldsell—matter?

A: The market is the place where the buyers and sellers interacts with each other and the exchange of g...

Q: In the accompanying graph, is the slope of curve AA′ positive or negative? Does the slope increase o...

A: Slope refers to a value that makes a variation in the dependent variable by making a one-unit change...

Q: Hello, I only need an answer for D. Thank you

A: d. The collision is the process in which the firms become one and determines the output and price jo...

Q: 1. If you borrow money from your friend with simple interest of 12%. Find the present worth of 20,00...

A: Present value or present discounted value is the current value of the future expected stream of cash...

Q: How would you argue in favor of the current trendtoward central banks’ independence?

A: The central bank of the US economy is the monetary authority which is the authorized monetary organi...

Q: What role does the government, both the fscal authority and themonetary authority, play in recession...

A: The Government exercises the Monetary policy or the fiscal policy in  booms and recessions.   In the...

Q: Graph the accompanying demand data, and then use the midpoint formula for Ed to determine price elas...

A: Demand curve is a curve which represents the relationship between the price and quantity. And price ...

Q: Suppose the price of gasoline is $1.00. Will the quantity demanded to be lower or higher than at the...

A: Equilibrium condition is a condition where the quantity demanded is equals to the quantity supplied ...

Q: Assume that beef and pork are substitutes for consumers. If there is a drought in the cow grazing ar...

A: Part a Explanation If beef and porks are substitutes, if there is drought in cow grazing area then t...

Q: Explain in detail, with the aid of a graph, the two components of the demand for money. Identify the...

A: Answer: Introduction: Money is demanded for two reasons, either for transaction demand or for precau...

Q: Currency crises and the demand for dollars: Suppose there is a currency crisisin the rest of the wor...

A: Exchange rate is the price of a currency of one country in terms of the currency of another country....

Q: How can exchange-rate targets lead to a speculativeattack on a currency?

A: The exchange rate targeting is the method by which a central bank intervenes in the market in order ...

Q: How does shielding employees and suppliers from business risk help to improve economic outcomes? Who...

A: The procedure of safeguarding workers from the risk assist/helps an investor to obtain the suppliers...

Q: Explain why you would be more or less willing to buylong-term Delta Air Lines bonds under the follow...

A: a. Less willing; As given, that the income decreased and the liabilities increased, which means ther...

Q: Use graphs andT-accounts to illustratethe distinctions betweenthe effects of sterilizedand unsterili...

A: A central bank holds large reserves of foreign currency. It is the capability of the intervention by...

Q: Select one: a. 95.8; deflation b. 100.0; deflation C. 118.3; inflation d. 103.6; inflation

A: Deflator associated with the GDP shows the price inflation or the rise in the commodity prices in a ...

Q: Suppose that consumers spend their income on either health insurance or on a“composite good”. Find t...

A: The answer is provided with proper explanation and graph below :

Q: 1. Why is innovation so important for firms to compete in many industries? 2. What are some of the a...

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first ques...

Q: What is the formula for measuring the price elasticity of supply? Suppose the price of apples goes u...

A:

Q: Multiple‐choice questions: In the circular flow of income and spending: (a) Investment results in a ...

A: The circular flow model demonstrates how money flows from production sector to household sector and ...

Q: What evidence is used to assess the stability of themoney demand function? What does the evidence su...

A: The velocity is used as the measure to check whether the demand for money in the economy is stable o...

Q: Why do we measure short-run output Y~in percentage terms rather than in dollar terms?

A: Output is the quantity of products or services produced by a company, industry or nation in a given ...

Q: In 2008, as a financial crisis began to unfold in theUnited States, the FDIC raised the limit on ins...

A: FDIC or the Federal Deposits Insurance Corporation is a government regulatory body constituted in th...

Q: Why might eliminating the central bank’s independence lead to a more pronounced political businesscy...

A: The elimination of central bank independence will lead to severe consequences on the economy : 1. It...

Q: Hello, I need only answer D to be answered. Thank you

A: Monopolistic Competition is a kind of imperfect market structure where a large number of firms compe...

Q: With an estimated market share of 60%, Atlas is the market leader in an oligopolistic steel industry...

A: Four-firm concentration ratio of the industry is the percentage of industry sales that we get from 4...

Q: What three motives for holding money did Keynes consider in his liquidity preference theory of the d...

A: Liquidity is a term used to describe the conversion of an asset into liquid form like cash.

Q: Suppose you have a production technology that can be characterized by a learning curve. Every time y...

A: Marginal Cost (MC) is the extra cost of producing an extra unit of a good. Total cost (TC) measures ...

Q: Explain in detail, with the aid of a graph, the two components of the demand for money. Identify the...

A: Two components of demand for money are : Transaction demand : Money required for transactions or to...

Q: Under what market structure do Pepsi and Coke operate? How can you explain the pricing behavior of P...

A: Oligopoly is a market structure which have the following features: Small number of firms Action of ...