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Economics 202 Cookbooks - Justcookbooks
Part I The government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues, such as obesity and heart disease. Answer the following: What type of tax • is this? Explain. • What happens to the supply of cookbooks? • Who pays the tax at the end? • Is this a good way to finance programs to improve health? • What other types of tax can the government use to increase revenues?
https://www.tradebit.com becomes wildly successful in the United States, and you decide to export overseas. Answer the following: • Does this reflect an absolute or a comparative advantage? • Name some issues that you will encounter as you become a multinational corporation.
In the article entitled "The Economic Effects of Labor Unions Revisited," Vedder and Galloway attempt to prove statistically, using historical data, that labor unions do not have a good effect on the economy. Read the article, and explain the following microeconomic concepts that the authors discuss and how they are related to unions: • Demand, supply, and equilibrium wage rates of labor • Unemployment • Real GDP and economic growth • Income per capita • Population growth and aging The article focuses on harmful economic effects, but also mentions some positive aspects. What are they?
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