Q: 1. Consider an economy with two goods, cheese and salad. Suppose that the prices and quantities sold…
A: 1) GDP estimates the monetary worth of final products and services (those purchased by the final…
Q: 1. Refer to Scenario 3-1. What is Greg's opportunity cost of producing ice cream? Explain how you…
A: "As per the guidelines answer is given to the first three parts." "Opportunity cost of producing a…
Q: If consumption is $300 billion, investment is $100 billion, government purchases are $200 billion,…
A: Gross domestic product (GDP) measures the market value of final goods and services produced by a…
Q: Problem 4 Vietnamese Coffee Coyote Many people were surprised when Vietnam became the second largest…
A: The Exchange rate, which is the price at which one currency will be exchanged for another, controls…
Q: Discuss the difference between General Training and Specific Training. Give Examples.
A: General Training and Specific Training are part of Human capital training. Human capital is made up…
Q: Give a real-world example from current events that demonstrates an understanding of the economic…
A: Unemployment rate: The active participants of the labor force not being associated with any jobs or…
Q: What would be the impact of a price floor of $12 A) There would be no impact B) a shortage of 12…
A: Equilibrium in the market occurs at the intersection of the demand and supply curves. A price floor…
Q: 1. As rental tor a building, the owner received two offers: Option A: Php50,000 a year for 8 years,…
A: Simply changing the discount rate or the projected inbound or outbound cash flows will change…
Q: According to the article, Roger Dow, U.S. Travel’s president, said that the Visit U.S. Coalition…
A: The production possibilities curve depicts the various possible combinations of volume of production…
Q: Where will economic growth come from in the future, and what kind of skills will workers need to…
A: Economic growth is the rise in the cost of the products and services an economy produces over time.…
Q: An economist compiled data on productivity improvements last year for a sample of firms producing…
A: Given information: Sum of squares between groups (SSB)= 16.623 Sum of squares of total (SST) =…
Q: Question 7. Given that Y₁ = Bat + et t=1,2,...,T and et is found to be stationary. c) Consider, Y,…
A: The vector autoregressive model is used to find the single predictive model for the multiple time…
Q: ndia is expected to be the world's fastest-growing economy this year, 2023. If current trends…
A: The world trading system refers to the network of rules, agreements, and institutions that govern…
Q: Which country will be exporting and importing which product? O England will be exporting both wine…
A: The production possibility frontier shows the different combinations of the total output of the 2…
Q: Phillips Curve
A: The link between unemployment and inflation is described by the Phillips curve, a theory in…
Q: Can you explain further and give an example of the following below? REASONS OF GLOBALIZATION…
A: The term globalization can be defined as a process that has integrated people, organizations, and…
Q: What is the opportunity cost of increasing missle production fromm 50 to 100?
A: It is given that economy is producing two goods, i.e., missiles and houses. The opportunity cost of…
Q: 1. The following business transaction occurred in the first quarter of 2022 in Turkey; • Turk Auto…
A: Balance of payments: Balance of payment is the record of all economic transactions made by one…
Q: 24. From the perspective of economic efficiency, A trade creation is preferable to trade diversion…
A: ***Since the student has posted multiple questions, hence, the expert is required to solve only the…
Q: Which ONE of the following is NOT a measure of inflation? A. RPI B. CPI C. CPIH D.…
A: Inflation is a situation where the purchasing power of money gets reduced owing to an increase in…
Q: 12.Comparing credit facilities by sector in Jordan in 2017, the highest credit facilities were going…
A: Given questions are asking about various questions related to different sectors in Jordan:
Q: For a perfectly competitive firm, P > MC at its current level of output. Then, this firm should…
A: Perfect competition refers to a market model in which a large number of customers and sellers have…
Q: Peng Plasma is a privately held Chinese business. It specializes in the manufacture of plasma…
A: Exchange rate refers to the rate at which one country's currency is exchanged for the other…
Q: If you are interested in buying some shares of this stock for a total of $200 and will hold them for…
A: Introduction: The total of future investment returns discounted at a given level of expected return…
Q: Suppose that instead of implementing the policy described in the article, the government introduces…
A: Externality is the external cost or benefit borne by the third party. There is negative externality…
Q: If the reserve required ratio is 20%, how much can this bank lend? a) $900,000 b) 0 c) $500,000…
A: Given information: Demand deposits = $5,000,000 Cash in vault = $900,000 Deposits at Fed = $100,000…
Q: explain how the image represents opportunity cost and scarcity in economic terms?
A: Scarcity is a general economic phenomenon that is due to the limited availability of goods or…
Q: there are no solutions
A: Capital goods are man-made products utilized by a business to produce consumer or other capital…
Q: If a country produces the following items during the year, calculate GDP. Item Quantity Price Market…
A: Gross domestic product (GDP) measures the market value of final goods and services produced by a…
Q: What determine the Structure of Interest Rates and name the three primary shapes of the Structure of…
A: Interest rate refers to the amount charged over and above the principal value by the lender from the…
Q: Imagine that you run the toll authority for a city bridge. You must charge all of your customers the…
A: Total revenue (TR) earned by a firm is the income generated by selling a product at a particular…
Q: Explain the current Canadian unemployment rate in economic terms. No COVID-19 INCLUDED!!!
A: The term unemployment refers to a situation in which people would be ready to work and actively look…
Q: Which of the following is not considered an operating expense? FOB destination Cost of goods sold…
A: Operating expenses refers to the cost of a firm or organization that occurs on a regular basis to…
Q: Refer to the following computer output from estimating the parameters of the nonlinear model…
A: Given information: We have given a non-linear model i.e., Y = aRbScTd In order to transform the…
Q: There are two political parties, the red and the blue party. The elections are approaching and each…
A: In the field of game theory, the best response of a player is the player’s strategy which generates…
Q: When a country allows trade and becomes an importer of a good: a. Both domestic producers and…
A: Introduction: When two parties engage in trade, one side provides the good and the other side…
Q: To travel to Japan via private plane, Jamaica made a P100,000 loan which is to be repaid over a term…
A: The sinking fund deposit is the amount of money that the borrower must pay into a special account,…
Q: 1. The HVAC engineer for a company constructing one of the world's tallest buildings (Shanghai…
A: Annual worth is a measure of the present value of a series of future cash flows over a period of…
Q: Discuss the different types of Unemployment. Give Examples
A: Unemployment is a condition when a individual actively finding for a job and is unable to find work.…
Q: Risk aversion is best explained by a. Timidity b. Increasing marginal utility of income…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Using the AE model, show the economy in equilibrium. Then, show the impact of an increase in taxes…
A: The expenditure-output model, often known as the Keynesian cross diagram, calculates the point in…
Q: 8 The table below shows the demand curve facing a monopolist who produces at a constant marginal…
A:
Q: Bangladesh exports shirts, the making of which is labor-intensive, to the United States. The likely…
A: Labor-intensive refers to the production process of goods and services that require a large amount…
Q: A company manufactures Products A, B, and C. Each product is processed in three departments: I, II,…
A: Every firm seeks to maximize its profits or minimize its costs. For this purpose, they need to…
Q: Suppose the fictional country of Everglades produces two types of goods: agricultural and capital.…
A: Production possibilities frontier shows different combinations of two goods that can be produced…
Q: 4. Shifts in production possibilities Suppose the fictional country of Cuyahoga produces two types…
A: The production possibility curve refers to the graph which shows the various combinations of two…
Q: In January 2021, many New York City teachers did not have a full-time teaching assignment. By early…
A: According to the Bureau of Labor Statistics, someone is considered to be unemployed if they are not…
Q: Consider the following game. Find all Nash equilibria, subgame perfect Nash equilibria, and weak…
A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…
Q: Suppose that you have data at the individual level that includes information on the price of a…
A: The responsiveness of the quantity required of an item or service to a change in the price of that…
Q: What does an aggregated demand curve look like?
A: Aggregate Demand is the total quantity of all goods and services demanded by all people in the…
![3. Consider the consumption bundles indicated on the
diagram. For each of the following pairs, determine if
one is preferred to the other (i) with certainty, (ii)
likely but not with certainty, or (iii) can't say at all.
Explain your reasoning. [Hint: sketch some possible
indifference curves]
a) D and E.
b) C and D.
c) A and C.
d)
B and C.
e) C and E.
S
Shoes
8 A
7
6
5
3
2
1
B
A
C
E
D
Pants
1 2 3 4 5 6 7 8 9](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b1947d4-70b6-4c2c-b474-3edba0856b72%2Faeaaded4-e8b8-4ba1-96d9-799cffb9c9af%2Faog8u6t_processed.jpeg&w=3840&q=75)
Step by step
Solved in 2 steps with 1 images
- which is the most preferred level of individual’s choice for public expenditure relating it with individual’s utility dependence, by considering three different groups? also draw the graph and intrepret it.A consumer has utility u(x,y,z)= ln(x) + 2ln(y) + 3ln(z) over the three goods, x,y and z and pZ = 1 . Optimally sheconsumes 30 units of z. What is her income? How much money does she spend on x?(HINT: MUX =??, MUY =??, MUZ =??and remember the “equivalent bang for the buck” condition)(b) Forget about (a). Suppose you have t = 29 hours in total to spend on 3 projects X, Y and Z to make some money.If you spend x hours on project X, you make 2√? dollars;If you spend y hours on project Y, you make ?√? dollars;If you spend z hours on project Z, you make ?√? dollars;Writing down your “utility function” u(x,y,z) and the constraint, solve the utility maximization problem; what isthe optimal amount of time to spend on x ? on y? on z ?During any year, I can consume any amount that doesnot exceed my current wealth. If I consume c dollars duringa year, I earn ca units of happiness. By the beginning of thenext year, the previous year’s ending wealth grows by afactor k.a Formulate a recursion that can be used to maximizetotal utility earned during the next T years. Assume Ioriginally have w0 dollars.b Let ft(w) be the maximum utility earned during years t, t 1, . . . , T, given that I have w dollars at the be-ginning of year t; and ct(w) be the amount that should be consumed during year t to attain ft(w). By workingbackward, show that for appropriately chosen constantsat and bt,ft(w) btwa and ct(w) atwInterpret these results.
- 3. Suppose we are in a society where the social rate of time preference is 5% per year. The discount rate of utility is 3.5% per year, and the elasticity of marginal utility of consumption is 1.25. A. What is the assumed growth rate of future consumption under this scenario? B. Now assume the social rate of time preference changes to 10% while all else stays the same. What is the assumed new growth rate of future consumption? C. What does a SRTP of 5% mean compared to a SRTP of 10%? D. Why does the growth rate of future consumption change from one scenario to the other? Answer C & D3. Suppose we are in a society where the social rate of time preference is 5% per year. The discount rate of utility is 3.5% per year, and the elasticity of marginal utility of consumption is 1.25. A. What is the assumed growth rate of future consumption under this scenario? B. Now assume the social rate of time preference changes to 10% while all else stays the same. What is the assumed new growth rate of future consumption? C. What does a SRTP of 5% mean compared to a SRTP of 10%? D. Why does the growth rate of future consumption change from one scenario to the other? ( If you Answer allow the above I will upvot definitely . ) Thank you22. Peanut butter (PB) sells for 10 dollars per pound and Oysters (O) sell for 50 dollars perpound. Suppose Pat buys 5 pounds of peanut butter and one pound of oysters each month.With this consumption bundle, his MRSP B,O = 3. Which of the following is true (assumingPat’s preferences satisfy all the basic assumptions of consumer theory)?(a) Pat could increase his utility by buying more oysters and less peanut butter.(b) Pat could increase his utility by buying more peanut butter and less oysters.(c) Pat could increase his utility by buying more peanut butter and more oysters.(d) Pat could increase his utility by buying less peanut butter and less oysters.
- A consumer has utility u(x,y) = x^4 y^2 where x is this year’s consumption, and y is next year’s consumption. She makes 600 dollars income this year and 720 dollars income the next year. There is also a bank where she can borrow money at the interest rate r=%50 and lend money (to the bank) at the interest rate r=%20 (of course, she will decide to borrow or lend this year and pay off her debt or receive her savings the next year). a. Should she borrow money from or lend to the bank this year? How much b. If her utility were u(x,y) = xy2 instead, re-solving (a), would she borrow money or lend? How much? c. If her utility were u(x,y) = x^c y^2, what should “c” be so that she ends up neither borrowing nor lending?5. A consumer buys only two goods, X and Y. No other goods exist and there is no possibility of saving. The marginal utility of X is independent of the quantity of Y consumed, and the marginal utility of Y is independent of the quantity of X consumed. MUX is constant no matter how he consumes, but MUY falls as consumption increases. In the initial equilibrium he consumes one of each good. How much can you infer about the following:a.) The slope of the indifference curveb.) The curvature of the indifference curvec.) Whether the marginal utility of money is constant, rising, or falling as money income increases.d.) the income elasticity of demand for Ye.) The price elasticity of demand for X.Eren’s two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His utility function is given as: U(V,M) = V^2MLast year, the average price of taking a vacation overseas was US$200 and the average price of an expensive meal is $50. However, due to supply problems in Onions, the average price of an expensive meal rose to $75. The average price of a vacation did not change. His income, which is $1500, did not change. Suppose that the Department of Welfare wants to know how much should be given to Eren to offset his change un utility due to the price increase of an expensive meal. Calculate the compensative variation (CV).
- Given the utility function: U = ln c + l + ln c’ + l’ and the budget constraint: w(ℎ−l)+(w′(ℎ−l′))/(1+r)=c+(c′)/(1+r) (see pictures of function and constraint) where c = current consumption, c' = future consumption, l = current leisure, l' = future leisure, and r is the market interest rate.Suppose that the current wage, w = 20 and the future wage w' = 22. a) What is the optimal value of current consumption, c? b) What is the optimal valueof future consumption, c’*?18. Declining MRSXY implies that:(a) The total utility is decreasing along an indifference curve(b) The consumer’s preferences do not satisfy the more-is-better principle(c) The consumer is willing to give up more and more X for additional Y as the consumption of X increases along an indifference curve(d) The consumer is willing to give up less and less X for additional Y as the consumptionof X increases along an indifference curveConsider a consumer that lives only for two periods. He works in period 1 (and gets income Y1) and moves up the corporate ladder in period 2 (and gets income Y1 < Y2). This consumer has the usual preferences over time: u(C1) + βu(C2) 1. Assume this consumer cannot borrow. What is the consumption in period 1 and period 2? Display graphically. Show the corresponding utility curve. 2. Assume that now the consumer is allowed to save or borrow. Write down the new budget constraint. What is the consumption in period 1 and period 2? Display graphically. Could the consumer be worse off? Could the consumer be better off? Draw budget constraints such that for one of them consumer prefers to borrow and for the other - prefers to save. 3. Assume once again that a consumer cannot borrow, but can borrow and immediately sell some MacGuffins, and in the next period, the consumer must buy back the MacGuffins to return to the lender. Assume that MacGuffin t r a d e s a t P1 > 0 in the first period…
