A country's production possibilities frontier will be a straight line if Group of answer choices the economy is producing efficiently. increasing the production of one good by x units entails no opportunity cost in terms of the other good. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good. the economy is engaged in trade with at least one other economy.

Q: Machines that have the following costs are under consideration for a new manufacturing process.…

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Q: 30. What consumer's budget constraint reflect? O the Trade-off between two goods O the relative…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Company Liam purchased a machine that needs maintenance as long as it is in use, which can be…

A: One of the aspects of your asset management that is most frequently overlooked is your maintenance…

Q: You work for a company that produces molds for concrete castings, and are approached by a local art…

A: The project will start to turn a profit at the break-even point. This indicates that the total…

Q: Consider the insurance problem from class in which an agent with wealth w dollars has a chance ≈ €…

A: Given information Initial wealth=W Chances of loss  lies between 0 to 1 Loss amount=l Insurance…

Q: If the price of good X increased relative to the price of Y, and there is no change in a person's…

A: The substitution effect is the shift in consumption based on by a price adjustment while maintaining…

Q: In recent months inflation has increased sharply in Australia and many parts of the world. Ongoing…

A: Given,  Inflation increased sharply in Australia and the rest of the world There were supply side…

Q: Suppose that the government expenditure multiplier is equal to 6. By how much should the government…

A: An inflationary gap is a difference between what GDP (Gross domestic product) would be under full…

Q: If a demand curve is downward sloping, it must represent demand for a normal good. (Inferior goods…

A: In economics the demand curve refers to a graphic representation on a relationship among the item's…

Q: Alex is considering one of two options for reducing her heating bill during the winter: New windows…

A: When the present worth (PW), or future worth (FW) method is applied on making the comparison of the…

Q: The Federal Reserve raised the target range for the fed funds rate by 75bps to 2.25%- 2.5% during…

A: Inflationary’ pressure’s and worries about possibility of economic overheating may be driving the…

Q: 1. Describe two cases of imperfect competition in which regulation is desirable? a) why is market…

A: Imperfect competition exists when a market, whether it be hypothetical or real, deviates from the…

Q: QUESTION 15 Which of the following is likely to have the most price inelastic demand? Coffee. Cars.…

A: Price elasticity of demand refers to the percentage change in quantity demanded due to a percentage…

Q: Show the movement of the AE curve if there is a tax cut. What is its effect to national income or…

A: AE(aggregate expenditure) curve is an upward sloping curve which shows the relationship between…

Q: If the Price of gasoline falls: Group of answer choices   The quantity demanded for gasoline will…

A: Cost of Production In economics, the cost of production incorporates all the expenditures that the…

Q: The interaction of the NZ taxation and welfare (benefits) systems creates Select one: a.greater…

A: The marginal tax rate will be computed as amount of tax paid on for each extra dollar of income. The…

Q: What do you understand by social security? What do you understand by the “pension crisis” and how…

A: The government offers financial aid that is in the form of social security to the general populace.…

Q: 16. What are benefits from learning elasticity? know how much quantity supply change due to price…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Consider a society consisting only of Helen, who allocates her time between sewing dresses and…

A: A model used to illustrate the trade-offs related to splitting resources between the production of…

Q: A consumer of three goods with wealth 10 chooses the bundle x = (2,3,0) when prices are p = (2,2,3),…

A: WARP sates that the consumer's preferences are consistent. Which means that if consumer prefers the…

Q: 4. A decision-maker faces a lottery that gives her a final wealth of 1 dollar with probability 1/4,…

A: A random variable may have any number of alternative values and likelihoods within a particular…

Q: Which of the follow describes the basic problem of Adverse Selection? O It occurs "before the…

A: Insurance risk is the risk that insufficient or inappropriate underwriting, product design, pricing,…

Q: The domestic demand for wheat is C e export demand is QDE=500-2 Draw the domestic, export, and aggr

A: The total demand is calculated by adding the individual demand curves horizontally. Here, the demand…

Q: Question 40 Suppose the elasticity of demand for watches is -0.60. If the price rises by 12% how…

A: given that, elasticity of demand = 0.60 percentage change by price is 12% we have to find quantity…

Q: What is the function of an economic system * to coordinate production and distribution of goods and…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Question 9 Which of the following is true in the principal agent model?1. The agent has more…

A: The principal and agent problem is associated with the asymmetric information. The agent tends to…

Q: Armando consumes two goods: grapes and wine. He can purchase both at the market and also possesses a…

A: According to the Marshallian demand function, which was named after Alfred Marshall, the amount of a…

Q: A firm has two plants. Plant one has the total cost function TC₁ =q₁² and plant 2 has the total cost…

A: Given  The cost function in plant 1: TC1=q12            ......(1) The total cost function in plant…

Q: QUESTION 13 Use the following figure to answer this question Per cent 1960 1965 fred.stlouisfed.org…

A: Full Employment: Economy is at its full employment when natural rate of unemployment is equal to…

Q: The first condition for price discrimination is having a separate market. The second condition is to…

A: Price discrimination occurs when a company charges different rates to different consumers for the…

Q: 2-42 A new integrated computer system is to be installed worldwide for a major corporation. Bids on…

A: When attempting to acquire a piece of property or engage in a procurement competition, an investor,…

Q: The improvement in output per worker due to adopting new technology could be shown as (Select one…

A: We have given the graph Here output per worker is a function of capital per worker.  An improvement…

Q: Do fixed costs affect perfectly competitive firm’s output decisions in the short run? Briefly…

A: In a perfect competition,  Firm produces where P = MC  So, The output is determined by the situation…

Q: 45. What statement is true average cost does not include fix cost marginal cost does not include fix…

A: Average cost is the cost of output per unit.    Marginal cost is the cost of producing additional…

Q: The 2006 Human Development Report reported that the Human Development Index of South Africa was…

A: Introduction  Human development index (HDI) is composite index is prepared by united national…

Q: In the luxury trips market, if income of people increases 50%, quantity demanded increases from 20…

A: Income elasticity of demand =(% change in quantity )/…

Q: Briefl y explain how the following programs would affect the elasticity of demand for labor in the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: ns. 35

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Q: QUESTION 10 Which pair of products are more likely to have a positive cross-price elasticity of…

A: The products having positive cross price elasticity are the ones that are complements to each other…

Q: A consumer is observed choosing the bundle (3, 1) at prices (1, 2) and the bundle (2, 2) at prices…

A: The utility maximization point or the consumer equilibrium are other names for the optimum bundle.…

Q: QUESTION 16 If frozen food is an inferior good then an increase in income causes an increase in…

A: The given good is inferior, this are the goods those who have negatively related with the income of…

Q: QUESTION 25 When quantity supplied is higher than quantity demanded, this fact is known as Shortage.…

A: At the equilibrium point, the quantity demanded is equal to the quantity supplied, and the price at…

Q: Fiscal drag is where Select one: a.there is a lag in government spending having any effect.…

A: The term fiscal is used to explain the government action or intervention in the market using its…

Q: Consider the following figure: monopsony.PDF. A monopsonist will charge ✓and purchase In a perfectly…

A: Monopsony In a monopsony, a single buyer dominates the marketplace as the primary consumer of the…

Q: Consider the macroeconomic model shown below: C = 500+ 0.80Y | = 1,500 G = 1,000 NX = - 100 Y=C+I+G…

A: The provided equations are: C=500+0.80YI=1500G=1000NX=-100Y=C+I+G+NX

Q: Suppose an insurance company wants to charge a very healthy individual a premium of $1,200 a year…

A: "Since you have asked multiple questions,we will solve first question for you.If you want specific…

Q: A monopolist is producing at a quantity of 13,678 units where the marginal revenue of the last unit…

A: Here, it is given that a monopolist is able to sell 13,678 units with MR from last unit as $2,386…

Q: Prediction markets allow traders to bet on future events. One prediction market that is particularly…

A: Given information Utility function U=ln(X+1) Initial wealth=4 Probability of winning=0.5  So, the…

Q: Behind the Supply Curve: Inputs and Costs Work It Out: Question 3 of 5 The accompanying table shows…

A: Fixed costs (FC) are defined as costs that are consistent regardless of how much product a company…

Q: all that a consumer with utility Marshallian demand u(7₁, 7₂) = min{7₁, 27₂} 2w W x(p, w) = (2p₁ +…

A: utility functions show the relationship between the utility and commodities that are consumed.

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.