Explain the income effect and the substitution effect. Explain/Define indirect taxes. Define and give an example of a compensating differential. Provide specific examples on the negative effects of industry concentration. Provide one example of a tourism multiplier effect that includes at least four le...
Nowadays, there are many celebrities who are famous for their glamour and wealth rather than achievements and this sets a bad example for young people. To what extent do you agree or disagree? Give reasons for your answer and include any relevant examples from your own knowledge or experience....
Economic theory predicts a potential work incentive in the phase-in range of the credit and a potential work disincentive in the phase-out range. This study utilizes empirical analysis of individual tax return data to evaluate EITC participants' and comparable non-participants' wage income cross-...
This is really an example of the Slutsky effect. The income remained constant but as the price of gasoline rose,consumers chose less costly options. In fact many cut down on road trip vacations in order to spend less and conserve more of their income. ...
One of the most important lessons learned from the example of Chile is that when the goal is to almost entirely privatize a pre-existing PAYG-DB scheme, the result is likely to be inadequate pension benefits for rural workers, informal workers, women, and low-wage workers more generally. Ano...
An example of an annuity with a liquidity feature would be a "25 Year Period Certain" immediate annuity. If you bought this type of annuity and then decided to take a full withdrawal after 5 years, you might be able to get an advance on the remaining 20 years of guaranteed payments. So...
Equation (18.23) is the solution for the optimal top marginal tax rate, t (and another example of a sufficient statistic formula). Assumptions about the appropriate values of g¯, eu, and ec are required to set the value of t. In the review by Saez et al. of the literature on the...
What are the effects of an aggregate exceeding the aggregate supply? How does the increase in income affect asset prices? (a) What are open-market operations? (b) How do they influence the money supply? What is a money multiplier? Give an example. ...
Operations of an Income Statement 9:01 Cost of Goods Sold | COGS Definition & Formula 8:25 Net Profit Definition, Formula & Examples 5:27 Net Loss Definition, Formula & Calculation 3:37 How to Make an Income Statement: Example & Analysis 6:00 4:00 Next Lesson Budgeted Income St...
The typical example given for a Giffen good is potatoes in Ireland in the 19th-century. In this situation, an increase in the price of potatoes made poor people feel poorer, so they switched away from enough "better" pr...