Chicago to Raise Cigarette Tax Source: Chicago Sun Times Accessed: November 23‚ 2013 Posted: November 21‚ 2013 Word Count: 748 Written: November 25‚ 13 Microeconomics The city council in Chicago‚ Illinois is discussing a raise to the tax on cigarettes in an effort to cut the amount of people who start smoking each year. This type of tax is called a Pigouvian tax (meant to limit consumption of a good). Currently‚ the cigarette tax has been stuck at 68 cents a pack since 2006 and the
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6.1a) A monopoly is facing the demand and marginal cost curves which is P = 12 - 0.002Q and MC = 3 + 0.001Q. When the demand curve is P = a- bQ‚ the marginal revenue curve will be MR = a- 2bQ ‚ therefore‚ MR = 12 - 0.004Q.(Refer to figure1) Figure 1 To maximize the profits‚ the company should produce at the output level where marginal revenue is equal to marginal cost. If the marginal revenue is higher than marginal cost‚ the firm can increase profit by producing more. If
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ENVS 105 Question Set Section #1 Fall 2014 Answer the following questions for your homework. Work on the questions after we have covered the topic in class. Bring any questions to class or office hours. These questions will help you on the exam. If you do not do them‚ the points will add up and hurt your grade. To get credit‚ you must: Answer all questions Answer all parts of each question Type your answers Do complete and conscientious work Write out‚ number‚ and letter all questions Use regular
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ENVS 105 Question Set Section #3 Fall 2014 Answer the following questions for your homework. Work on the questions after we have covered the topic in class. Bring any questions to class or office hours. These questions will help you on the exam. If you do not do them‚ the points will add up and hurt your grade. To get credit‚ you must: Answer all questions Answer all parts of each question Type your answers Do complete and conscientious work Write out‚ number‚ and letter all questions Use regular
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1. What do economists mean when they state that a good is scarce? a. There is a shortage or insufficient supply of the good at the existing price. b. It is impossible to expand the availability of the good beyond the current amount. c. People will want to buy more of the good regardless of the price of the good. d. The amount of the good that people would like exceeds the supply freely available from nature. 2. Which of the following is most clearly consistent with the basic guidepost
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6. To fully explain the multiplier effect‚ we need first to define the Injections and Withdrawals‚ preferably through the model of Circular flow of income: It is a simple economic model describing a circulation of income between producers (firms) and consumers (households.). It consists of direct inner flow between firms and households and outer flow. The outer flow is caused by the fact that households do not spend all of their income on consumption; part of their income is withdrawn as net
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1. The Bureau of Labor Statistics announced that in April 2010‚ of all adult Americans‚ 139‚455‚000 were employed‚ 15‚260‚000 were unemployed‚ and 82‚614‚000 were not in the labor force. Use this information to calculate: a. the adult population = employed+unemployed+not in the labor force=237329000 b. the labor force = employed+unemployed=154715000 c. the labor-force participation rate = (labor force/adult population) x 100= 65.2% d. the unemployment rate = (unemployed/labor force) x 100=
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Based on the information provided for the market for video games‚ answer the following questions. PRICE Q DEMANDED Q SUPPLIED $50 5 9 $45 7 7 $40 9 5 $35 11 3 $30 13 1 a.) Draw and properly label the demand and supply graphs (this means you must label the axes and any lines you include on the graph). b.) What is the equilibrium price and quantity? a.) b.) PRICE: $45 QUANTITY: 7 Now‚ assume that a new government report claims that video game
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Name __________________________ _________ last 4 PSU ID _______ Section 001 11:15 SPARKS MWF Spring 2011 Chuderewicz YOU MUST USE THIS AS A TEMPLATE – NOTEBOOK PAPER IS NO LONGER ACCEPTED - MAKE SPACE FOR YOUR ANSWERS BY HITTING ENTER (you certainly don’t need to type this assignment)– LEAVE THE QUESTIONS AS THEY ARE – AND PLEASE STAPLE! ALSO‚ PLEASE PUT THE FIRST TWO LETTERS OF YOUR LAST NAME IN THE TOP RIGHT HAND CORNER OF THIS PAGE SO THAT WE CAN ALPHABETIZE THESE EASILY. THANKS IN
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Q1. When the income distribution gets very skewed‚ with a small number of people getting a large portion of the income‚ the taxation system can be used to redistribute some of the income so that the poor aren’t as poor and the rich aren’t as rich. Taxes can be used to redistribute some income to the poor. The government can use a progressive income tax. The definition of progressive tax is the taxing mechanism in which the taxing authority charges more taxes as the income of the taxpayer increases
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