Economics Answers

The theory of the demand for money is based on John Keynes’ Liquidity Preference Theory.
Give your own detailed explanation of liquidity preference theory and how the demand for money curve is determined. Illustrate your answer graphically.
Note: You should include in your answer a detailed explanation of each component of the demand for money as well as the determinants of these components.

. Mayor George Henry has a problem. He doesn’t want to anger voters by taxing them because he wants to be reelected, but the town of Gapville needs more revenue for its schools. He has a choice between taxing tickets to professional basketball games or food. If the demand for food is relatively inelastic while the supply is relatively elastic, and if the demand for professional basketball games is relatively elastic while the supply is relatively inelastic, in which case would the tax burden fall primarily on consumers? In which case would the tax burden fall primarily on producers?

Obesity and smoking are both linked to numerous adverse health consequences, including heart disease, cancer, and strokes, among others. The Affordable Care Act permits health insurance companies to charge people higher premiums if they smoke or are obese. But the law forbids the companies from charging higher premiums or denying coverage to people who have suffered strokes or have heart disease or cancer.
Can you suggest a rational argument why the law might be structured this way?
How could this be designed to affect a shift in the demand curve for soft drinks or cigarettes?
Could this law be a better way to influence purchase of soft drinks rather than the tax the Bloomberg tried to enact? You must be sure to describe and explain Bloomberg’s prohibition.

4. Make an economic argument why the government should assist ‘needy people’.

Utility is best defined as

Which of the following statements is/are correct about money supply?
a. An increase in the bank’s demand deposit will result in a decrease in the required
cash reserves.
b. The quantity of money supplied in the economy is a flow concept.
c. A decrease in the required reserve ratio will cause an increase in the credit multiplier

If the price elasticity of medical care is 0,31 it can be concluded that the demand for medical care is........ Since the percentage change in quantity demanded is........ The percentage in price.

how do you measure taxation?