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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.
Given the observed long-run relationship between the money supply and the price level, how much can we expect the price level to rise, ceteris paribus?
Can you suggest an explanation for people's preferences that there be inflation rather than deflation of stable prices?
If the inflation rate is fully anticipated, what are the ways in which consumers and businesses can protect against the resulting loss of purchasing power?
When the price of petroleum dropped by more than 50 percent later in the year, the press said little, and much of what the press said was negative.
What effect do you think this has on the long-run poverty rate among minorities? Explain.
How do government programs that provide benefits for the poor (such as food stamps and subsidized housing) change the incentives of people to be classified?
Why do most politicians love to spend money and hate to pay for their expenditures? What are the consequences for you if you spend more than your income?
Is it possible that in, say, ten years, the real tax rate paid by U.S. residents. What circumstances would have to change to make this occur? Explain.
If you are a lower-income-earning individual and thus pay no income taxes, should you care about tax increases for other individuals? Explain.
The grim economic climate since 2008 has caused many workers to defer their retirements. How will this affect large employers in state and local governments?
Why can't state and local governments simply continue to borrow funds through the bond market to cover not only shortfalls in current tax revenues.
Why do you suppose they used this rather than an assumption of 2 percent, or even 0 percent?
Why would a state or local government ever commit more resources for future pension benefits than it could possibly have resources to pay?
If there is no government- or company-provided pension system, how can an individual create a financially safe retirement?
Under what circumstances does federal government need to undertake these subsidies as opposed to letting private companies themselves pay for such investments?