Which of the following is an example of the “crowding out effect” from hosting the Olympics? Group of answer choices Large crowds result in a loss of man-hours due to congestion in traffic The crowds and congestion from the Olympics dissuade other tourists from visiting the city The Olympic Games drive up property values, forcing local residents to relocate Bond issues needed to fund the Olympics drive up interest rates and discourage borrowing by local investors

Which of the following is an example of the “crowding out effect” from hosting the Olympics? Group of answer choices Large crowds result in a loss of man-hours due to congestion in traffic The crowds and congestion from the Olympics dissuade other tourists from visiting the city The Olympic Games drive up property values, forcing local residents to relocate Bond issues needed to fund the Olympics drive up interest rates and discourage borrowing by local investors

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 19SQ

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The process of determining a host of the FIFA World Cup is highly competitive, with many countries vying for this prestigious honor. One consideration for picking a host is the national debt of potential host countries. Consider why a nation's debt level might be a factor in determining which country will host the FIFA World Cup. Countries with high levels of debt - often have high crime rates, which may discourage fans from attending the World Cup. - often follow a functional finance approach, which discourages all types of government spending. - may be unable to make the significant investment in infrastructure required to host a World Cup. - are generally experiencing economic recessions, making them an undesirable place to visit for foreign tourists.
Consider a hypothetical university with very homogeneous students and one professor who each year teaches a wine - tasting course with a maximum class size of 60 students. Knowing that the number of students who want to enroll in the course always by far exceeds the 60 available seats in the course, the professor has students wait in line outside her office door. If waiting in line turns out to be extreme (e.g., students bring sleeping bags and sleep outside the professor's door in order to get a spot in the class), does that tell you that the professor is generating a lot of consumer surplus for students by teaching the course? Explain your reasoning carefully.
Which of the following describes an advantage of the government supporting research and development by offering firms a reduction in taxes depending on how much research and development they do? Group of answer choices All of the other three answers. It is a cost-effective policy for stimulating additional private sector investment. It does not involve the government's close scrutiny of specific projects. Each dollar of foregone tax revenue through the R&E Tax Credit causes firms to invest at least a dollar in R&D.
Recently, in response to the health complications of soda, many localities are considering a per- unit tax in the amount of $1 on suppliers. To include the tax, the supply function model above can be revised to be S: (p-1) = 16 Qs Analyze the impact of a specific tax by answering the following questions. e. Draw the new supply curve on your graph. f. What price will suppliers now charge and how much will be exchanged in the market? g. After paying the tax, how much will suppliers receive per unit? h. Tax revenue equals tax times the amount exchanged in the market. What will tax revenue be? i. Shade in tax revenue on your graph.
Problem 6-9 Demand change effects on government revenue The market for Titanium has supply given by P = Q and demand given by P = 12 - Q. The government introduces a tax of €3/g. Yet, the market experiences growth in the demand for titanium because of new-found medical uses. The new demand curve is P= 13 - Q. Find the change in government tax revenue due to the increased demand for titanium. (Round your answer to one decimal place.) € million
In the past, Canada has agreed to set an upper limit on the total amount of softwood lumber exported to the United States. This is an example of a(n): Group of answer choices export subsidy voluntary export restriction import quota protective tariff
Once the government imposes a Tax per unit sold in a market, the following will occur, EXCEPT: Question 11 options: The (after tax) price paid by the consumer will increase and the (after tax) price received by the producer will decrease. The Tax will reduce consumer's and producer's surpluses (net benefits) The tax will generate a DWL (dead weight loss). The tax will have a higher tax incidence on the most relatively Elastic sector (demand or supply)
A war would have the following effect on capital in an economy: Increase the real rental price Increase the marginal product of capital Increase the amount of investment by rental firms All of the above
Two months ago, on July 1, 2019, the State of Illinois raised gasoline taxes by $.19 (19 cents) per gallon of gas. Now it is past July 2019 and the market has changed. The gasoline tax is in place for all Illinois gasoline stations. In addition to the gasoline tax increase, Illinois dealers on average are noticing that many of their customers are going across the border to buy gasoline in Wisconsin, Iowa, Missouri and Indiana. Not all customers can do this, as they live far from a border. But there is a clear impact on the market for Illinois gasoline producers. Build a graph showing the impact of the Illinois gas tax increase and the shift of some Illinois consumers to border state gas stations, clearly indicating any shifts in the demand and/or supply curves and the resulting equilibrium Price and Quantity. Provide a narrative explaining the shifts. (Both a graph and a narrative are needed for this question)
Question 2 - 2P and Qs: Suppose the market demand and supply equations for flowers are Qp = 100 3P, respectively. a) Draw the demand and supply curves on a graph. Label clearly and mark the equilibrium price. b) Government imposes a £5 specific tax on sellers, what price will consumers pay? Show on the graph. c) How much tax revenue is collected by the government? Show on the graph. d) What fraction of the tax is paid by sellers?
Question 3 options: CBS is selling advertising for its broadcast of the AFC championship game. The station’s demand for minutes of commercial advertising time is the demand it faces from the companies to which it sells advertising time: PADS = 100,000 - 50Q. CBS has MC = $2000. Buyers pay CBS a price PCBS for each minute of advertising and add $1,000 for each ad to cover the tax they pay, so their MCADS= PCBS + 1000. No one has any fixed costs. The profit for CBS is (include dollar sign and any commas, no decimals)
domestic supply and demand of rice is given by the following equations: QD=200–10p QS=20p–100 The world price of rice is pW=8 and is unaffected by the domestic market. (a) Suppose there are no trade barriers for importing or exporting rice. Find the resulting price, quantity purchased by consumers, quantity produced domestically, and the quantity of imports or exports. (b) What is the resulting consumer and producer surplus (domestic)? (c) If all international trade of rice is banned (no imports or exports allowed), what is the resulting domestic price and quantity? (d) What is the resulting CS and PS under the ban? What is the deadweight loss?