A good economic theory

Q: When deleveraging occurs, the price of assets falls, causing firm net worth to decrease. Why does…

A: Deleveraging is the act of reducing the total debt by using internal resources. Firms start paying…

Q: Which of the following is an example of a public good? Group of answer choices All of the other…

A: Answer: A public good is a god that is available to everyone in society. In other words, public…

Q: According to James Madison and other framers' understanding of republicanism, the best form of…

A: Introduction James Madison and other framers thinks that republicanism is the best form of…

Q: if competition is so beneficial for society, why does the U.S. Government all and promote monopolies…

A: A market structure known as a monopoly is one in which there are only one or two suppliers of the…

Q: Price J M K L S₁ S2

A: The supply curve explains the direct relationship among the marketplace charge and amount…

Q: 4:62. The following table gives the data of production in million tons and price per ton of four…

A: The geometric average of the Laspeyres price index (which only takes the base period bundle) and the…

Q: Your younger brother needs $600 to buy a new computer. He has opened a sandwich stand to make the…

A: The elasticity of demand is the reaction of demand due to change in price of goods and services,…

Q: Suppose the marginal productivity of capital is 50 units of output and the marginal productivity of…

A: The Equilibrium condition: MPL/W =MPK/r

Q: If the economy is producing in the intermediate zone of the ad/as would you suggest discretionary or…

A: Government of the country take help of fiscal policy measures to maintain balance in the economy.

Q: Using a Short Run Aggregate Supply-Aggregate Demand diagram, what is the effect of a decrease in…

A: Aggregate supply: It refers to the total output of the economy. The increase in the total output of…

Q: 6) Which of the following transactions represents debit on the current account section of the US's…

A: Introduction The balance of payment is considered a country statement that includes all the…

Q: Consider Figure 4.1. In the absence of trade, Mexico's producer surplus and consumer surplus…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: Price elasticity of demand If the price elasticity of demand for a product measures 0.45, then:…

A: The change in price leads to the change in demand and this degree of change and responsiveness is…

Q: Suppose an economist develops an international trade model based on the assumption that there are…

A: The Ricardian model shows the likelihood that industry in a created country could contend with…

Q: Supply curve crosses with vertical oxes on point 20 unit, If supply curve slope is 5 Then find…

A: Let the supply curve be:- P = D + bQswhere D is Y axis interceptorb is slope of the curveQS is the…

Q: If a country's real GDP per capita declines, this means that which of the following may have…

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

Q: Here is what we know about a household: wages $25,000, unemployment insurance benefits $3,000,…

A: The expenditure way to deal with computing GDP (GDP) considers the amount of every last great and…

Q: The notion of ceteris paribus means "other factors being equal." a. True b. False

A: While explaining the law of  demand and the supply we just need to understand the relationship…

Q: Consider an economy with two labor markets: one for manufacturing workers and one for service…

A: Wage rate is determined at the intersection of demand and supply of labor curves.

Q: Q⁰ The demand for pizza is represented by PD = 10- and the supply of pizza is represented by PS = 4…

A: Price ceiling is the maximum price that can be charged. It is binding if it is set below the…

Q: Answer this question please What is the difference between the Keynesian and rational…

A: Fiscal policy and monetary coverage are called financial stabilization rules that regularly cross…

Q: Hand written plz If a country switches from a flexible exchange rate regime to a fixed exchange rate…

A: A floating (or flexible) exchange rate system is one in which a country's exchange rate changes over…

Q: N. If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply…

A: Demand means that there is no adjustment of the amount of the item requested when the cost…

Q: equation for the tax-adjusted user cost of capital is (r+d)PK 1-t (1-t)i-ne. =. (r-d)pk. -. (r+d)pk.

A: Given that, real interest rate,r = 0.16 depreciation rate,d = 0.06 Tax adjusted user cost, = 14.72…

Q: ich of the following would be true in a typical PPF curve? The resources needed to make both goods…

A: The production possibility frontier shows the different combination of two goods that can be…

Q: a. At the equilibrium price, calculate total surplus in the market. b. Assume demand increases and…

A: The difference between what a producer is willing to accept for a certain quantity of an item and…

Q: The wage rate (w) is $10 and the rental rate uppose that a firm had a production function given by:…

A: A firm produces output in the cost minimizing way when it used that quantity of two inputs (Labor…

Q: Kevin invests $5000 at an APR of 5.6% compounded monthly. Carl invests $4800 at an APR of 6.2%…

A: Given values: The investment amount of Kevin = $5000 The investment amount of Carl = $4800

Q: Now consider a small open economy, assuming domestic output is held constant and the country…

A: A small open economy's currency is impacted heavily by capital flows.

Q: 1- The below graph shows a monopolist that faces a market demand according to his cost functions.…

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

Q: On August 8, 2000, Zimbabwe changed the value of the Zimbabwe dollar from Z$38∕US$ to Z$50∕US$.…

A: The exchange rate is the rate at which one currency is exchanged with the other. We have been given…

Q: If the government exogenously increases its government purchases, then what would happen to the…

A: The loanable fund's principle is a hypothesis of the market financing cost. As per this methodology,…

Q: Table 1.2 Price per Quantity Demanded Unit $5 320 $10 260 $15 200 $20 140 $25 100 $30 50 $35 10 In…

A: We have quantity demanded and supplied for different level of price.

Q: What is the marginal benefit associated with producing six units of the control variable, Q…

A: Marginal benefit refers to additional benefit derived from producing one more unit of input.

Q: Use the following data to answer the question below. Malaysia data: The annual growth rate of…

A: Production function with total factor productivity, labor’s share and capital’s share of income is…

Q: U = x₁0.5x2 ; P₁ = 10; p2 = 5; and m = 122. The demand for x₁ is: x₁= x1 _/p₁. Round your answer to…

A: Individuals and businesses pursue utility maximization as a purposeful strategy for achieving the…

Q: Suppose the marginal productivity of capital is 50 units of output and the marginal productivity of…

A: In financial matters, the marginal product of capital (MPK) is the extra creation that a firm…

Q: In the game above, what is/are the EFFICIENT sub-game perfect Nash equilibrium?

A: In the given scenario, there is a two sub-perfect nash equilibrium. i. Up, Up This is because if…

Q: Given the following parameters: Perfect Competition in Output Market Perfect Competition in Labour…

A: The wage is determined by the market forces of demand and supply. The equilibrium wage is equated…

Q: Find the average time per unit required to produce the first 35 units, if the slope parameter of the…

A: Given,   Number of units(x)= 35  Learning rate = 85%  Time to produce first unit =448

Q: TC = 75 +22Q + 2Q² What is the average variable cost when 15 units are produced? Enter as a value.

A: Given, TC = 75 + 22Q + 2Q2 Units produced(Q) = 15 units

Q: 4 Suppose that the inverse demand and supply functions are p = 200- x² and p = x² + 38, respectively…

A: Given  Inverse demand function: p=200-x2             .... (1) Inverse supply function: p=x2+38 p…

Q: A driver wishes to buy petrol and have her car washed. Petrol costs $1 a litre. The car wash…

A: Here, it is given that the price of petrol is $1 and price of car washed is $3.

Q: A pumping station costs Php600,000 to construct, and it is projected to have a 20-year life with an…

A: Given  First cost of pumping station P =Php600,000 Life of the pumping station (n)=20 years…

Q: Question #2: 2) Your company purchases a new CNC machine for $100,000 today (beginning Year 0). In 8…

A: To find the total cost per part we need to find aggregate annual cost of the CNC machine . Initial…

Q: 9. If disposable income is 4,000, consumption is 3,500, government spending is 1,000, and taxes…

A: Here, given information is, Disposable income (Y): 4,000 Consumption (C): 3,500 Government spending…

Q: Use the blue points (circle symbol) to plot the aggregate expenditures line for this economy. Line…

A: Aggregate expenditure is the total consumption of final goods during an accounting year.  AE=…

Q: The market for used economics textbooks is perfectly competitive, with a market supply curve given…

A: A subsidy is an incentive given by the government to individuals or businesses to improve the supply…

Q: 1. Tim has borrowed money from Lisa and proposed to pay back the money in two payments. Tim…

A: Interest that is computed on the principle amount of a loan or the first deposit made to a savings…

Q: Two workers, A and B, produce the same product on identical machines. A receives P25.00 per hour and…

A: The hourly wage is how much cash paid to a representative for each hour of work performed.