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Who bears the costs and enjoys the benefits of the subsidies mentioned in the previous question?
What effect do you think this policy has on American imports of foreign goods and American exports of products other than commercial aircraft? Explain.
What effect do you think this had on American imports of Japanese cars, Japanese imports of American cars, and American exports of goods and services other than
What is the likely impact of international trade restrictions on the following variables in the United States: employment, the unemployment rate and real GDP.
Until a few years ago, U.S. cars exported to Japan had the driver controls on the left side. What impact would this likely have on their sales in this country?
What effect do you think this had on Japanese imports of U.S. cars and U.S. exports of goods and services other than automobiles?
What will happen to the magnitude of the adverse effects of these limits as interest rates rise generally? Be explicit.
If government-imposed limits on interest rates are such a good idea, why not just make it illegal to charge any interest on all loans?
Why would a limit on interest rates on old credit card balances reduce the incentive of firms to issue new cards?
How might a look at these comments help you identify individuals and businesses who are likely to gain or lose as a result of the regulations?
What do controls on interest rates do to the incentive of consumers to lie on their credit applications in an effort to qualify for a credit card?
Why do you suppose the government regulates interest rates on consumer credit (as with credit cards) but generally does not do so with commercial credit?
How would the chance of a major economic depression change if federal deposit insurance were eliminated?
Currently, most U.S. residents cannot buy health care insurance coverage from a company based in another state. Who benefits from this situation? Who loses?
Who benefits from this current general rule? When health care reform legislation abolishes this rule, who will be hurt?
If the government attempts to reduce health care expenditures by lowering the fees that physicians. What might be the result in the short run? In the long run?
What are some of the ways in which government could force individuals to undertake their own illness-preventing activities?
Who is more likely to think of a cut in current taxes as being a true reduction in taxes: a young worker with several young children or an older retiree?
WHy does the consumer response likely depend on how long it will be before taxes are actually raised to pay off the debt incurred by the government?
How do unemployment benefits change the incentive to be employed? Explain. Is it possible that a system of unemployment benefits actually cause total spending.
How was this possible-that is, what spending had to decline to make it feasible for the federal share of spending to rise by a factor of five?
Given that per capita income is almost $50,000 per year, what is this income change in percentage terms? Show all calculations.
Explain why you will make more accurate predictions if you focus on changing incentives people face rather than listening to what they say they are going to do.
Create a list of goods whose quality has improved over time in such a way that current prices of these commodities do not accurately reflect their real prices.
What would you do if you wanted them to lend out even fewer funds to potential borrowers? Explain your answers.