Q: 3. Factors that influence international trade World trade has grown substantially in the last 60…
A: International trade refers to an exchange of a product or service involving at least two different…
Q: Macmillan Learning Classify the statements about growth as true or false. If a statement is an…
A: Growth is defined as the increase in national production of goods and services. Growth is calculated…
Q: Exhibit 30-2 Price and Cost 0,0₂ Refer to Exhibit 30-2. If the exhibit represents a positive…
A: The positive externality is an indicator that the market produces less than the socially optimal…
Q: Use the following graph for a private closed economy (an economy with only a private sector and no…
A: Aggregate demand refers to the total demand for goods and services in an economy at a given price…
Q: PRICE (Dollars per unit) 20 18 16 14 12 10 6 4 + 2 0 0 Statement W * M N 8 QUANTITY (Units) 10 12 14…
A: Elasticity is the percentage change in quantity demanded due to percentage change in price.
Q: should government avoid debts at any cost
A: This can be described as a concept that shows the situation when the spending done by the government…
Q: QUESTION 11 Countries with low GDP per person tend to have a. more access to safe drinking water. b.…
A: Gross Domestic Product (GDP) is the sum total of the market value of the final goods and services…
Q: Suppose consumption is increased from Q1 to Q2 in the graph. The change in total social benefits…
A: Social benefit is the difference between the maximum willingness to pay and the price charged by the…
Q: 7. Solving for dominant strategies and the Nash equilibrium Suppose Ethan and Cadence are playing a…
A: Dominant strategy is the strategy which yields the highest satisfaction to a player by choosing a…
Q: 9. Problems and Applications Q4 When someone owns an asset (such as a share of stock) that rises in…
A: Economics is a social science that studies how individuals, businesses, governments, and societies…
Q: Suppose a country’s population is growing due to immigration. In the long run, output will ________…
A: Immigration refers to the act of individuals moving from one country or region to another with the…
Q: To society, the opportunity cost of producing one more bushel of wheat is A) the marginal cost…
A: A key idea in economics and decision-making is opportunity cost. When a decision is made between…
Q: When the increase in prices goes from 5% to 2%, this is referred to as: a) disinflation. b)…
A: Inflation refers to persistent rise in general level of price of goods and services.Inflation does…
Q: Let's assume that in a South American country, the nominal GDP went down by 3%, while, the price…
A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…
Q: If a technology company introduces a new gadget to the market which creates long lines of eager…
A: Demand refers to the quantity of a goods or service that a consumer is willing and able to buy at a…
Q: Ted can wax a car in 25 minutes or wash a car in 75 minutes. Ishana can wax a car in 20 minutes or…
A: Ted can wax a car in 25 minutes or wash a car in 75 minutes. Ishana can wax a car in 20 minutes or…
Q: How has the CSME affected economic development in the Caribbean, in particular, Education, Health,…
A: A regional integration project called the Caribbean Single Market and Economy (CSME) aims to unify…
Q: Which of the following is NOT a benefit from trade? O a. the ability to specialize O b. an increase…
A: Trade benefits nations by enhancing specialization, offering diverse products, lowering prices…
Q: The following graph shows intra-industry trade in the United States for two types of yogurts:…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve.The…
Q: Determine the annual equivalent amount over 4 years for the following cash flow (CF) pattern. The…
A: The given cash flows can be represented as a cash flow diagram:The nominal interest rate is 5%…
Q: If business taxes are reduced and the real interest rate increases: * A. consumption and saving…
A: Real interest refers to rate of interest on particular financial like bonds ,loan which is adjusted…
Q: In 2001, the United States was in recession. Which of the following things would you not expect to…
A: During a recession, the economic landscape experiences significant challenges, with businesses and…
Q: Assume that MPS is 0.4. If spending increases by $8 billion, then real GDP will increase by
A: The aggregate expenditure is the total spending that is done by all the economic agents in the…
Q: Using a graph, demonstrate whether the Marschkes would prefer the cur- rent program, the proposed…
A: An indifference curve represents a combination of goods or services that a consumer considers…
Q: A production function is given by q = 500L + 320K. The price of capital is $120 and the price of…
A: The link between the inputs (factors of production) used in the production process and the output…
Q: If government saving is negative, then OT>TR. OG>T. OT-TR<G. OY+TR<C-T.
A: Government SavingsIn economics, government savings implies the total amount the government is left…
Q: 1. What factors contribute to productivity growth in an organization or industry? Discuss the key…
A: The increase in output of goods and services produced per unit of input over time is referred to as…
Q: Municipal bonds tend to pay lower interest rates than U.S. Treasury bonds because A. interest…
A: Tax-exempt bonds are financial instruments issued by government entities, such as municipalities,…
Q: Ann's utility function is U = q1q2/(q1 + q2). Solve for her optimal values of q1 and q2 as a…
A: In this case, we have to discuss the term Lagrange multiplier. Lagrange multiplier method is a…
Q: 5. Graph the investment function. Graph the aggregate spending function (no government, no foreign…
A: The aggregate spending curve or aggregate expenditure curve refers to the curve depicting the…
Q: Consider a simple demand-and-supply model of a competitive labour market in a small town. The demand…
A: In the labor market there is a demand for labor (firms make demands for labor) and supply of labor…
Q: 5. Expenditure Gaps The following graph shows the planned expenditure line (AE) for an economy where…
A: Aggregate demand refers to the total demand for goods and services in an economy at a given price…
Q: John is a very cost-conscious investor. His rule of thumb is that it costs $300 per year, starting…
A: Present value or present worth implies the time value of the money concept. It describes that the…
Q: Which Federal Reserve district bank president always votes on monetary policy changes? the Richmond…
A: The Federal Open Market Committee is referred to as FOMC. It is an essential part of the Federal…
Q: What is the advantage of Fed transparency, the Fed's communication strategy since 2012, of clear…
A: In order to control and manage the money supply, interest rates, and the overall financial…
Q: ● Consider the following price indexes: 90 in 2017, 100 in 2018, 110 in 2019, 121 in 2020, and 150…
A: Inflation rate 2019 to 2020 = {price index (2020) - price index (2019) / price index (2019)} *100 %
Q: Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen).…
A: The project information is given below:For present worth analysis, study period (n)=18 years and…
Q: Consider the graph of demand (D), marginal revenue (MR), marginal cost (MC), average total cost…
A: In a monopolistic competitive market, there are a large number of small firms. The firms sell…
Q: Pric © EH OEL O GK ODG KL MSC MPC MSB MPB Q of chemical solvents In the above graph, the marginal…
A: The market failure may occur due to externality. The marginal private cost does not equal the…
Q: Campbell needs to be paid at least $500 in order to sell their bicycle. They sell their bicycle and…
A: The difference between the price a producer or seller obtains for a good or service and the lowest…
Q: Which of the following graphs shows what would happen to the investment line if the real interest…
A: There is an inverse relationship between the real interest rate and the investment => when the…
Q: Use the information in the table to answer the two questions that follow about Monster's Ink, a…
A: Marginal product refers to the change in output or production that is achieved by adding one…
Q: 9. Ignoring oligopoly and focusing on the other three types of market structure, in which of those…
A: Market refers to a place at which the buyer and seller of a goods or service comes in contact to…
Q: A person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The entire…
A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…
Q: QUESTION 18 You are on your way to work. Your hourly rate is $20 per hour. You stop at a coffee shop…
A: Opportunity Cost: It refers to the foregone revenue on the next best alternative if we pick a…
Q: Winston manufactured soda dispensers, such as those found in fast-food restaurants. He entered into…
A: Inflation:It is a situation when prices of goods and services increased and the capacity to purchase…
Q: Suppose the base year is 2001. Looking at GDP data from the United States from 2001 to the present,…
A: Economics is a social science that studies how individuals, businesses, governments, and societies…
Q: Which of the following explains why soccer players make millions of dollars in Europe but do not in…
A: In Europe, people prefer soccer over other sports while in US, other games like American football,…
Q: PRICE LEVEL Figure 33-5 W LRAS X Y N V AD₁ QUANTITY OF OUTPUT AD₂ AD₂ SRAS Refer to Figure 33-5.…
A: Aggregate demand is the sum of consumption, investment, government spending and net export. This…
Q: In this market, the equilibrium wage is 50 100 150 200 200 300 200 400 400 300 LABOR (Hundreds of…
A: Labor market functions through the interaction of workers and employers. It is where the demand for…
Suppose that President Clinton has recently recommended that the U.S. should use some of the strategic oil reserves (oil stored underground and owned by the United States government) in order to solve the U.S. oil supply problem. Assume that quantity demanded in the short-run is inelastic at 1 million barrels per day. The quantity supplied (per day) is equal to 700,000 + 10,000P (where P is the
a. What would be the current price for a barrel of oil? N
b. If Clinton releases 100,000 barrels per day, what is the new
c. Presidential candidate George W. Bush proposed that all states lower their gasoline tax. Assume that the gasoline tax reduction leads to a $10 decrease in the tax on a barrel of oil (i.e., supply side). What is the new price and quantity? N How much of the tax savings will be passed on to consumer through lower prices? Assume that the changes in part b. have not occurred.
d. What impact do each of these two proposals in b. and c. have on revenues?
I need answer only part d.
Step by step
Solved in 3 steps
- From the graph, it is clear that the demand for gasoline is relatively (unit elastic, elastic, inelastic) and the supply for gasoline is relatively (unit elastic, elastic, inelastic). This is an example of a (positive or negative) supply shock and, referencing the graph below, is best represented by the shift (from curve 1 to curve 2 or from curve 2 to curve 1). If there's a price-gouging law in effect preventing gas stations from raising prices, then there will be an excess (supply, or demand) of _____ million gallons of gas. Suppose the government wants to alleviate the market imbalance. The best policy solution is to impose (import tariffs, production subsidies, import quotas, or purchasing limits) and the (cost or revenue) would be $______ million.Assuming you are the manager of the travel department of a large corporation and your sales department has high consumption for air travel. Assume further that the president of the corporation wants you to reduce the travel expenditures in the next year. How will you curb the air travel? Using Demand and Supply Analysis, how will you predict the airfare, given the following assumptions? A number of new, small airlines have recently entered the industry and others are expected to enter next year? Broadband internet videoconferencing is becoming a popular, cost-effective alternative to business travel for many corporations? The trend is expected to accelerate next year as telecommunications firms begin cutting prices on teleconferencing rates.Assume that producers in Luzon can only produce 11 billion kg of palay at the time ofharvest even if price reaches PhP 30 per kg, what will be the value of their own priceelasticity of supply?
- Suppose Hinterland has been a closed economy (meaning there is no immigration from foreign countries and no international trade). The current labor force has 4 million skilled workers and 8 million unskilled workers. Both types of labor have perfectly inelastic supply curves, and the current skilled-unskilled wage ratio is 2.5. The elasticity of demand of skilled labor is -0.4, while the elasticity of demand of unskilled labor is -0.1. Suppose Hinterland allows a brief period of immigration, during which time 1 million skilled workers and 4 million unskilled workers migrate to Hinterland. Suppose there are no other changes to the economy. Approximately what is the new skilled-unskilled wage ratio? (Hint: The percent change in the wage ratio is approximately equal to the percent change in the skilled wage minus the percent change in the unskilled wage.)Suppose that President Clinton has recently recommended that the U.S. should use some of the strategic oil reserves (oil stored underground and owned by the United States government) in order to solve the U.S. oil supply problem. Assume that quantity demanded in the short-run is inelastic at 1 million barrels per day. The quantity supplied (per day) is equal to 700,000 + 10,000P (where P is the price for a barrel of oil). a. What would be the current price for a barrel of oil? N b. If Clinton releases 100,000 barrels per day, what is the new equilibrium price and quantity? N c. Presidential candidate George W. Bush proposed that all states lower their gasoline tax. Assume that the gasoline tax reduction leads to a $10 decrease in the tax on a barrel of oil (i.e., supply side). What is the new price and quantity? N How much of the tax savings will be passed on to consumer through lower prices? Assume that the changes in part b. have not occurred. d. What impact do each of these two…YorMagnets and YorMugs are two companies selling merchandise to tourists visiting the city of York. YorMagnets sells fridge magnets and YorMugs sells mugs with images of popular attractions. Assume that YorMagnets is the only company producing magnets for York and YorMugs is the only company producing local mugs. The daily demand for magnets (until 2019) is given by D1 = 50/9 – 200/9 P1 + 100/9 P2, where P1 is the price of magnets and P2 is the price of mugs. The daily demand for mugs (until 2019) is given by D2 = 500/9 – 200/9 P2 + 100/9 P1. The marginal cost of producing magnets is £0.50 per magnet and the marginal cost of producing mugs is £2.00 per mug. Both firms simultaneously choose their quantities. You may assume that both firms aim to maximise profits. Are magnets and mugs (perfect) complements or (perfect) substitutes? Explain your answer. How would you characterise this market? Explain your answer. Calculate the equilibrium price for both products and quantity…
- When prices for durable goods increase, firms can rapidly increase production to match demand. True or falseCompanies in the steel and alumina industry may react to an increase in the price of crude oil by increasing their prices to reflect the increased cost of production. This, in turn, may lead to higher prices for consumers. Alternatively, companies may seek to reduce their production costs by implementing cost-saving measures, such as switching to alternative sources of energy or reducing their energy consumption. In some cases, companies may seek government intervention, such as relaxing import controls or offering subsidies, to help them cope with the increased cost of production. Ultimately, the reaction of companies in the steel and alumina industry will depend on a range of factors, including the specific circumstances of each company, the availability of alternative sources of energy, and the actions of their competitors. An increase in the price of crude oil will increase the cost of production for the steel and alumina industry, which will increase the price of their products…What factors determine the elasticity of resource demand? What effect will each of the following have on the elasticity or the location of the demand for resource C, which is being used to produce commodity X? Where there is any uncertainty as to the outcome, specify the causes of that uncertainty. a. An increase in the demand for product X.b. An increase in the price of substitute resource D. c. An increase in the number of resources substitutable for C in producing X. d. A technological improvement in the capital equipment with which resource C is combined. e. A fall in the price of complementary resource E. f. A decline in the elasticity of demand for product X due to a decline in the competitiveness of product market X.
- What effect would each of the following factors have on elasticity of demand for resource A, which is used to produce product Z? Due to technological change, much less of resource A is used relative to resources B and C in the production process.Harding Enterprises has developed a new product called the “Quest Simulator (QS)”. The market demand for this product is given as follows: Q = 240 - 4P. If QS is priced at $40, what is the point price elasticity of demand? Is demand elastic or inelastic? What is the maximum amount that consumers are willing to pay for the quantity demanded at the price of $40? (hint: it includes both the total expenditures and the consumer surplus) If the price of QS is increased slightly from $40, what will happen to the total expenditure on the product? What will happen to the consumer surplus? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.If the pandemic causes firms in a competitive industry to spend $100,000 per month on safety measures (regardless of the output level), the firms bear this cost in the short-run, but consumers bear it in the long-run. True or false.
