1). Two countries, small land and big land, have exactly the same amount of resources to use in the production of milk and bread. Small land can produce 16 milk or 8 bread per year. Big land can produce 50 milk or 100 bread per year.

a. Draw both countries' production possibility frontier.

b. The opportunity cost of producing 1 bread in small land is ____________; the opportunity cost of producing 1 bread in big land is ______________.

c. To boost the production of both milk and bread, small land should produce ________ milk and _______ bread per year. (Explain the economic concepts used to find the answers)

3. The followings are President Obama's stimulus package in 2009. Illustrate the following situation by using supply and demand curve. (show the shift on the graph)

2) Provide a tax credit at a rate of 6.2 percent of earned income (after federal taxes are taken out), up to $400 for individuals and up to $800 for couples, in 2009 and 2010. The credit begins to phase out at income levels of $75,000 for individuals and $150,000 for married couples filing jointly. Since the credit is "refundable," people with no federal income-tax liability will get money back.

Continue an extended unemployment benefits program, set to expire at the end of March, through the end of 2009; extend the average weekly payment, about $300, by $25. The program would provide jobless workers an additional seven weeks of compensation, on top of the 13 weeks they would regularly get. Workers in states with high unemployment rates would get an additional 13 weeks, to a total of 33 weeks. Unemployment compensation for railroad workers, who are not included in the federal or state unemployment system, would be extended to 13 weeks.

Extend production tax credit for wind energy facilities through 2012 and other renewable energy facilities through 2013. Allow renewable facilities to claim investment tax credit instead of production tax credit. Remove cap on investment tax credit for small wind property. Allow renewable energy producers to claim a 30 percent cash grant from the Treasury Department in lieu of the 30 percent investment tax credit.

Allow General Motors to claim refunds for taxes paid in earlier, profitable years. General Motors and Chrysler received a multibillion-dollar federal bailout in December to prevent them from collapsing.

Increase the tax credit for purchasing plug-in hybrid vehicles to $7,500.

midterm -- Oct. 17th: Principles Of Microeconomics - Bryan Ndum - Outlook - Mozilla Firefox X O D https://outlook.office.com/mail/inbox/id/AAQKADcwZDE3MDBiLWQxMWMINGFjOS1iNWM2LThhODIxMjRiMTFhMAAQAGQVZDxxo8VGr8ZZW2MJ%2BQ1%3D W Delete Archive O Report " Reply Reply all ~ Forward Read / Unread Categorize ~ Flag / Unflag Print .. midterm -- Oct. 17th: Principles Of Microeconomics 2.00 1000 1600 2.50 800 2000 3.50 600 2400 4.00 400 2800 4.50 200 3200 5.00 0 3600 1. The equilibrium price in this market is the equilibrium quantity is 2. The government decides to levy a $1.50 on the consumer. Draw a graph that shows the change of supply and demand curve (Be sure to label the quantitative change of the curve that is affected.) 3.After the government decides to levy $1.50 on the consumer. The new equilibrium price is the new equilibrium quantity bought is 4. Graphically and mathematically determine the government's revenue and loss of welfare after introduction of tax. (Be sure to provide labeling of the graph such as intercepts, etc.) 5. Calculate the price elasticity of demand (original demand) when the price changes from 3.5 to 4 using midpoint formula. Is the revenue going to increase or decrease? Explain. 3. The followings are President Obama's stimulus package in 2009. Illustrate the following situation by using supply and demand curve. (show the shift on the graph) 1. Provide a tax credit at a rate of 6.2 percent of earned income (after federal Q Search A 2 3 0 @ N E V O W 10:21 PM Clear 10/16/2023