Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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Economists Conclude that a tax on the revenues of firms will be shifted in part to consumers of the products of those firms in the form of higher prices. However, they believe that a tax on the rent of land usually cannot be shifted and must be paid entirely by the landlord. What explains the difference?
David Ricardo has developed The Theory of Rent due of issues of Corn Laws, simple briefly the impact of rent land based on: A. Extensive margin of cultivation
State whether the following is true or false
Pure economic rent occurs when the opportunity cost of a resource is zero and there is a positive price for that resources in the market
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Economic rent is a surplus payment when viewed by the economy as a whole but a cost of production from the standpoint of individual firms and industries.
as the price of land increases, there is an incentive to provide more of the resource.
land rents are necessary to the economy to ensure that the land is available for economic use.
the supply of land responds to changes in rent, but in order to use the land profitably, revenue must cover the rental payments.
the supply of land does not respond to changes in rent, but in order to use the land profitably, revenue must cover the rental payments.
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Is this possible or not that the rate of interest fall to zero? 300 words
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(ALL OWNERSHIP GOES TO CENGAGE)
The following graph gives the labor market for laboratory aides in the imaginary country of Sophos. The equilibrium hourly wage is $10, and the equilibrium number of laboratory aides is 150.
Suppose the federal government of Sophos has decided to institute an hourly payroll tax of $4 on laboratory aides and wants to determine whether the tax should be levied on the workers, the employers, or both (in such a way that half the tax is collected from each party).
Use the graph input tool to evaluate these three proposals. Entering a number into the Tax Levied on Employers field (initially set at zero dollars per hour) shifts the demand curve down by the amount you enter, and entering a number into the Tax Levied on Workers field (initially set at zero dollars per hour) shifts the supply curve up by the amount you enter. To determine the before-tax wage for each tax proposal, adjust the amount in the Wage field until the quantity of labor supplied equals the…
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Discuss Ricardo’ theory of rent
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Q87
Consider a firm that uses only labour and capital as inputs. At the present use of labour and capital, the MP of labour is four times the MP of capital and the price of labour is twice the price of capital. To minimise its costs for a given level of output, the firm should...
a.
Decrease both capital and labour.
b.
Increase both labour and capital.
c.
Decrease capital and increase labour.
d.
Stay at its present factor mix.
e.
Decrease labour and increase capital.
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Define “economic rent” and identify the market structure that generates the highest economic rent.
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Which of the following inputs do you think include relatively large economic rents in their earnings?
a. Nuts and bolts
b. Petroleum
c. A champion racehorse
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The record indicates that more than 300,000 Pakistani has left the country in year 2018; skilled individuals leaving the country for greener pasture, Pakistan might be on the brink of losing its brain capital. What are the impacts of this brain drain on the Economy of Pakistan? Explain briefly
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