Model I: The Pentagon makes Congress a take-it-or-leave-it offer of a particular z-level combined with an overall budget, which it wants to be as high as possible, subject to the requirement that Congress will accept the offer. Model II: The Pentagon announces a price p per unit of z and allows Congress to pick z. The Pentagon wants the largest possible revenue but must at least cover costs. 10 Using the diagram to the left, answer the following questions (note that e = 5 is the true cost): DE a) Under model I, what z level is proposed and accepted by Congress, and what is the proposed budget? Explain your answer. b) Under model II, what price is proposed and what z level is provided? Is part of the budget wasted? Explain your answers. c) How do the z's from parts (a) and (b) compare to the socially optimal level? c = 5 10

Model I: The Pentagon makes Congress a take-it-or-leave-it offer of a particular z-level combined with an overall budget, which it wants to be as high as possible, subject to the requirement that Congress will accept the offer. Model II: The Pentagon announces a price p per unit of z and allows Congress to pick z. The Pentagon wants the largest possible revenue but must at least cover costs. 10 Using the diagram to the left, answer the following questions (note that e = 5 is the true cost): DE a) Under model I, what z level is proposed and accepted by Congress, and what is the proposed budget? Explain your answer. b) Under model II, what price is proposed and what z level is provided? Is part of the budget wasted? Explain your answers. c) How do the z's from parts (a) and (b) compare to the socially optimal level? c = 5 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the following supply and demand curves Price = 35-4*Q Price = 3*Q Suppose the government places a 7-dollar tax on producers. Doing so would generate _____ dollars of revenue. Suppose now instead of putting a 7-dollar tax on producers, the government put the 7-dollar tax on consumers. Doing so would generate _______ dollars of revenue. In this case, consumers would pay _____ percent of the tax. Give typed answer ASAP with proper step by step explanation. Will give upvote only for the correct answer . Thank you .
In a recent benefit-cost analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 7% social discount rate. If it had instead used a 8% social discount rate, the present value of the policy's net benefits would have been ; if it had used a 6% social discount rate, the present value of the policy's net benefits would have been A) Lower; lower. B) Lower; higher. C) Higher; lower. D) Higher; higher.
1. If a consumer has a utility function u (x1, x2) spend on good 2? = x1x, what fraction of her income will 2. For what kind of preferences (or utility) will the consumer be just as well-off facing a quantity tax as an income tax that raises the same money for the government? 3. When prices are (P1, P2) = (1,2) a consumer demands (x1, x2) = (1,2), and when prices are (P1, P2) (2,1) the consumer demands (x1, x2) = (2,1). Is this behavior consistent with = the model of utility maximization? 4. When prices are (P1, P2) = (2,1) a consumer demands (x1, x2) = (1,2), and when prices are = (P1, P2) (1,2) the consumer demands (x1, x2) = (2,1). Is this behavior consistent with the model of utility maximization?
please teach explain step by step, how is it like to graph?
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Write TRUE or FALSE for each of the following statements. _______ 1) Department heads within the Cabinet do not serve in terms – they are hired and fired at the president’s will. _______ 2) Republicans are mostly liberal. _______ 3) The C.I.A. is not part of any department that makes up the Cabinet. _______ 4) The popular election for the president takes place on the Tuesday after the first Monday in November. _______ 5) One of the first steps in running for President is winning your local city election. _______ 6) Virginia holds the first state primary of the election season. _______ 7) In terms of people trying to influence the government, lobbyists have the most power. _______ 8) Right now, there are thousands of interest groups in this country. _______ 9) All methods of political activism are designed to raise attention from the public. _______ 10) National bills must always be proposed by members of Congress. _______ 11) The War Powers Resolution of 1973…
It's a specialized market, so we'll just have to assume we have enough buyers and sellers to have our demand and supply curves be straight, smooth lines. The following information applies to the market before any tax is applied: Vertical intercept, demand curve: 600Vertical intercept, supply curve: 100P* = $300Q* = 50 Later, a tax is put on the market. The per-unit tax is $100, and it makes the price received by sellers fall to $260. With the tax, only 40 units are sold. (These numbers are not very realistic - but just go with it.) Carefully following all numeric instructions, calculate the price paid by buyers. Calculate market total surplus AFTER the tax is applied. Calculate producer surplus BEFORE the tax is applied. Calculate total market surplus BEFORE the tax is applied. Calculate DWL after the tax is applied.
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In a recent benefit-cost analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government-used a 5% social discount rate. If it had instead used a 7% social discount rate, the net present value of the policy would have been ; if it had used a 10% social discount rate, the net present value would have been Select one: a. higher; lower. b. lower; higher. c. somewhat lower; much lower. d. much higher; somewhat higher. e. somewhat higher; much higher. f. much lower; somewhat lower.
explain step by step, how is it like to graph?
With the GOP now in control of the U.S. House of Representatives, four House members - Marjorie Taylor Greene (Georgia), Jim Jordan (Ohio), Kevin McCarthy (California), and Elise Stefanik (New York) - sit down to a victory pizza party. Their large mushroom pizza with "Greene" peppers (12 slices) is divided among the four House members as follows: Marjorie Jim Kevin Elise 3 slices 3 slices 4 slices 2 slices The Donald (Trump, not duck) shows up with whom Marjorie, Elise, and Jim each share one slice of pizza. Kevin smiles politely. The new distribution of pizza is now: Marjorie Jim Kevin Elise Donald 2 slices 2 slices 4 slices 1 slice 3 slices Is the new distribution of pizza more or less equal than the distribution before Donald arrived? a. What is the Gini ratio before Donald's arrival? Please show your work, namely, the values for fi, yı, f2, y2, and so forth. {Note: You may check your answer at https://goodcaculators.com/gini-coefficient-caculator/} b. What is the Gini ratio after…
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