ECON 454, Fall 2007
Department of Economics, University of Maryland Jessica Hennessey
Problem Set #4 Answers
Question 1
For each of the Social Security reforms listed below, brie discuss the pros and cons of the reform, paying y attention in particu
ECON 454, Fall 2007
Department of Economics, University of Maryland Jessica Hennessey
Problem Set #2
Question 1
Andrew, Beth and Cathy live in Lindhville. Andrew demand for bike paths, a public good, is given by s Q = 12 2P . Beth demand is Q = 18 P
ECON 454, Fall 2007
Department of Economics, University of Maryland Jessica Hennessey
Problem Set #6
Question 1
For which group of workers is the substitution eect associated with a tax increase more likely to outweigh the income eect: primary earne
ECON 454, Fall 2007
Department of Economics, University of Maryland Jessica Hennessey
Problem Set #5
Question 1
Suppose a nation has a tax rate of 10% on the rst $20,000 of taxable income, then 25% on the next $30,000, then 50% on all taxable income
ECON 454, Fall 2007
Department of Economics, University of Maryland Jessica Hennessey
Problem Set #3 Answers
Question 1
Seven in ten students attending publicly funded universities leave the state after graduation, indicating that a very larger frac
ECON 454, Fall 2007
Department of Economics, University of Maryland Jessica Hennessey
Problem Set #1
Question 1
Why does redistribution cause e ciency losses? Why might society choose to redistribute resources from one group to another when doing so
