Discuss why policy makers need to have elasticity estimates when proposing new benefit plans. (To be clear: Imagine a President proposing free dialysis versus proposing free dental care.
Answer - The analysis of the elasticity is necessary in every proposal in order to find out the level of responsiveness that is generated by any new policy being implemented.
In the above given case , if the new benefits are introduced , it is very important to analyse whether those benefits will effect the habits of the individuals. If they are elastic , the benefits may effect , if they are inelastic , there is no use of such benefit.
The benefit plans are only beneficial if the nature of the people is elastic with respect to these increased benefits.
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International trade benefits
A) only the exporter. B) only the importer. C) both the exporter and the importer. D) neither the exporter nor the importer. E) the exporter at all times and sometimes also the importer.
Barry Eichengreen (1992) blamed the severity of the worldwide depression from 1929 to 1933 on the countries who abandoned the rules of the gold standard during economic downturns
This abandonment relieved countries from the monetary discipline measures of the gold standard. Indicate whether the statement is true or false
The type of security that is protected against inflation are:
A. Treasury bonds. B. Treasury notes. C. TIPS. D. Treasury bills.
Which of the following shifts both the short-run and long-run aggregate supply right?
a. an increase in the actual price level b. an increase in the expected price level c. an increase in the capital stock d. None of the above is correct.