Define stock equilibrium and flow equilibrium. Discuss the differences betwee the two. Give examples of stock and flow variables and suggest their uses in macroeconomic analysis in both macro-statics and macro-dynamics.
Q: Suppose that BYOB charges $2.00 per can. Your friend Lorenzo says that since BYOB is a monopoly with…
A: Please find the answer below. MONOPOLY MARKET: A monopolistic market is a theoretical condition…
Q: Suppose that the Money Supply is currently at $13,000, and that Money Demand is given by: MD= 23,000…
A: Money Demand : MD = 23000 - 2000r Money Supply : 13000 Equilibrium in the money market is achieved…
Q: Assuming that the is 0.50? O $7,000 O $5,000 O $3,000 O $4,000
A: Equilibrium Income=$4000 full employment income =$8000 full employment income is more than…
Q: The table below shows the marginal cost for three firms to clean up units of pollution. Net Cost for…
A: Marginal Abatement Cost:- The expense of mitigating negative externalities like pollution is known…
Q: a.Examine the ways in which a business might use information about the different elasticities of…
A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific…
Q: A. Economic profit is an indication that consumers are willing to pay more for a good or service…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: I need help with explanation
A: Consumers surplus: It is the measurement of the benefit that the consumer derives from buying a…
Q: in normal form. Not cooperate Cooperate Not cooperate 20,20 50,0 Cooperate 0,50 40,40…
A: *Answer: Given, Not cooperate Cooperate Not cooperate 20,20 50,0…
Q: Closing the educational gender gap is important for all the following reasons EXCEPT A. B. C. D. The…
A: Bridging of gender correspondence gap is one of the significant undertakings in the neighbourhood as…
Q: 5. The Marginal Product of the first worker is _______ units of output 6. Diminishing Returns sets…
A: Wage (W) = 100 Total Product (TP) (when L is 2) = TP (when L is 1) + MP (when L is 2)…
Q: H6
A: We know that Aggregate demand - At a given time aggregate demand is total demand of an economy. It…
Q: show graph for the following, thanks
A: In the mentioned question we have been asked to carve the variable cost, total cost function on the…
Q: Liam spends his budget on books (B) and clothing (C). His utility function is U(B,C)= BC. He has a…
A: Given Liam utility function: U(B,C)=BC ..... (1) Where B denotes books and C denotes…
Q: Define and explain the internal rate of return on a new investment?
A: Internal rate of return or IRR is a measure in economics of capital budgeting parlance and…
Q: what are some measures to control the inflation?
A: The definition of inflation is the rise in prices for virtually all products and services in the…
Q: Question 1: A risk averse agent, whose utility is given by U(r) = In r and whose wealth is 50,000 is…
A: Given information Utility function U(x)=lnX Probability of loss=0.1 Loss amount= 10,000
Q: Your self-employed friend tells you that he is able to legally use depreciation write-off on his…
A: Depreciation is a reduction in the fixed assets' book value. Depreciation is the process by which…
Q: Value of PO Is exact $5082.94. please show the proper calculation for this
A: Here we calculate the value of P0 of the given cashflow by using an annuity factor , gradient factor…
Q: Price/costs 150 140 130 120 110 100 90 BO 70 60 50 40 30 20 10 0 299 AC 123456789101112131415…
A: The equilibrium price is the main price where the plans of customers and the plans of makers concur…
Q: unicipality is studying a water supply plan for its tri-city and surrounding area to the end of year…
A: Present worth comparison technique In this technique of comparison, the cash flows of each option…
Q: Reason for an emergence of monopoly
A: A market arrangement known as a monopoly has just one vendor who has complete market control.…
Q: Assume no change in currency holdings as deposits change. A banking system with target reserve ratio…
A: Excess reserves are capital reserves held by a bank or monetary foundation in excess of what is…
Q: Consider the following game in normal form. Not cooperate Cooperate Not cooperate 20,20…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: Question 1 1(a) In the Solow Growth Model the output function for the economy is given by: Y = K 1/3…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: For a supermarket, would the overtime paid to the store's manager be classified as a fixed cost?…
A: Sellers must pay various factor payments to the producers of products and services in order to cover…
Q: Input either "increase" or "decrease" where relevant: An increase in the prices of inputs will…
A: Price and supply vary in response to shifts in supply and demand conditions. Equilibrium is…
Q: 1.Which part of economics focuses on the behavior of basic elements of the economy? 2. What is the…
A: The basic elements of economics:- Buyers are the most important element of an economy, they have…
Q: Which statement is true? O An increase in the tax on interest rate income increases the supply of…
A:
Q: Suppose the economy is initially in a long-run equilibrium. Using the AD-AS framework, show…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: Under which of the following circumstances would it most likely be beneficial for a government to be…
A: Economic growth can be characterized as the increment or improvement in the inflation-changed market…
Q: Air Shangrila sells to both tourist and business travelers on its single route. Tourists always stay…
A: given The weekly demand function of tourists QTd = 3000- 5P…
Q: A price index commonly has an expression base of 1000 because Select one: a. prices in the basket…
A: Option D is correct answer 1000 is convenient number to use in calculation because The average price…
Q: In order to study labor markets more easily, we make which of the following assumptions about firms?…
A: In the mentioned question we have been asked what will be assumption for the labor market.
Q: Let instead assume you are a policy maker. Which type of “scenario” would you prefer to create in…
A: scenario” would I prefer to create in order to stimulate as many new business opportunities as…
Q: .Why should MC curve cut MR curve from below to achieve producer's equilibrium?
A: a.Why should MC curve cut MR curve from below to achieve producer's equilibrium?
Q: What are some of the benefits of segmentation within a company?
A: Company segmentation is the process where a company divides their current market into quadrants,…
Q: Consider the following demand and supply functions. D(x) = 83-0.4x, S(x) = 2x + 75.8,0 ≤ x ≤ 90 Step…
A: The consumer surplus alludes to the contrast between the thing a consumer will pay and what they…
Q: Consider a general Cobb-Douglas production function q= LK, and assume the firm produces q-qo. Which…
A: Ans. Correct answer is option - (c) if we arrange the options a, b, c , d, e from above. We can say…
Q: The demand schedule for sugar is: The demand schedule for sugar is: Price (dollars per kilogram) 3 5…
A: Demand schedule shows the different quantity demanded at various price level. here price and…
Q: Q1. A and B are the only two sandwich shops serving in a small town. Each shop can choose to set a…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: A homogenous good industry consists of two firms (firm 1 and firm 2). Their cost functions are cq₁…
A: A Simultaneous Move Game you observe in Oligopoly market A possible strategy is to maintain a high…
Q: Suppose that in a given month $52 million is deposited into the banking system while $60 million is…
A: Money Supply refers to the total money in various forms available and circulating within the economy…
Q: 20) From the information in the table below, calculate the following statistics. Personal…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Tim works 51 hours per week, and his wage is $20 per hour. If his wage increases to $40 per hour,…
A: Initially, the wage rate is $20 per hour and Tim works 51 hours per week. Now the wage rate…
Q: If the cross-price elasticity of demand for good A when the price of B changes is negative that…
A: A negative cross-price elasticity of demand indicates that good A and good B have an inverse…
Q: Who introduced utility
A: Utility is characterised as the whole satisfaction a customer experiences when utilising a good or…
Q: Suppose a person chooses to play a gamble that is free to play. In this gamble, they have a 10%…
A: Insurance is the financial instrument that insurance firms or banks offer or sell a customer in…
Q: Suppose you are one of two producers of aluminium. You (firm 1) and your competitor (firm 2)…
A: When the two firms simultaneously optimize their outputs , each firm maximizes its profits taking…
Q: The figure below shows the industry demand curve and two possible industry supply curves in the…
A: Excess demand is when the quantity demanded is greater than the quantity supplied. Excess supply is…
Q: Suppose that the inverse demand for a product is represented by the equation P = 60 – 2Q, where P is…
A: A deadweight loss is an expense for society made by market shortcoming, which happens when organic…
Step by step
Solved in 2 steps
- What does Tobin's q tell us about what determines a firm's investment decision?According to the the Tobin's q, when should a firm invest?2. Models of inventory systems frequently consider the relationships among openingstock, production quantity, demand or sales, and closing stock. For a givenproduction period j, let Sj – 1 = closing stock from the previous periodXj = production quantity in periodDj = demand in period jSj = closing stock for period jRequireda) Write the mathematical relationship or model that describes how these fourvariables are related.b) What constraint should be added to produce capacity for period j is given bycj?(Maple) The output, Q, of an Internet firm depends in the short term on capital, K, and time, t. The production and savings functions are given by Respectively, where a and b are positive constants. Assuming that capital accumulation is equal to savings, show that If the initial capital is c, solve this equation to obtain an expression for K in terms of t and the constants, a, b and c. Write down the corresponding expression for Q. Comment on the qualitative behaviour of this solution in the case when
- 7.18 You are the chief learning officer for your organization and are tasked with evaluating a recent training program. What is the easiest way to accomplish this task? O Measure the return on investment. O Assess the transfer of learned skills to the job. O Test participants' knowledge and skills before and after the program OAssess participants' reactions to it.need correct answer !!!!!! 1. If the market value of a firm registers consistent increase, we can reasonably conclude that ________________, (a) Marginal of capital is greater than the cost of capital (b) Tobin’s q measure is greater than 1 (c) Value of its stock is over priced (d) None of the above (e) (a) and (b)Three students have each saved $1,000.each has an investment opportunity in which he or she can invest upto $2,000.Here are the rates of return on the students investment project:a.If borrowing and lendind are prohibited,so each student uses only personal saving to finance his or her own investment project ,how much will each student have a year later when the project pays its return?b.Now suppose their school opens up a market for loanable funds in which students ran borrow and lend among themselves at an interest rate r.What would determine whether a student would choose to be a borrower or lender in this market?c.Among these three students,what would be the quantity of loanable funds supplied and quantity demanded at an interest rate of 7 percent?At 10percent?d.At what interest rate would the loanable funds market among these three students be in equilibrium?At this interest rate,which student(s) would borrow and which student(s) would lend?e.At the equilibrium interest rate,how…
- Suppose, as an economist, you are asked to analyze an issue unlike anything you have ever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation?Question 2You have been employed as the chief economist for the economy UWI Land. The head statistician has provided you with the following information:Compensation of Employees900Corporate profits 400Factor income paid to the world 325Factor Income received from the world170Indirect taxes 775Subsidies 125Depreciation 120Consumption of goods 850Net interest 75Rent Income 125Consumption of services 475Residential investments 350Non-residential investments525Government Expenditure 925Imports 700Exports 300Proprietor’s income 300Calculate UWI Land’s GDP using the Income and Expenditure Approach(50 points) Consider the two-period economy with investment discussed in class. Forthe sake of simplicity, assume that the utility is time separable and that the per-periodutility is equal to:u(C) = log CAssume also that the technology to produce the consumption goods has constant returns to scale. Moreover, capital is the only input to production. Hence the currentperiod technology can be represented as:Y = zK1where Y , K, and z stand for output, capital and total factor productivity in the currentperiod. The future period technology is akin to the current period technology. There isno government expenditure in the current and future period so that G = 0 and G0 = 0.Finally there is full capital depreciation, namely δ = 1.(a) (10 points) Write down the social planner’s problem. State the variables withrespect to which the social planner maximises.(b) (10 points) Derive the first order conditions to the planner problem. Rearrangethere condition to find the conditions characterising the…
- Which of the following description best characterizes capitalsm? a)Society decides what,how and for whom to produce b)Ownership of the means of production resides with a small group of individiual. c)it is an economic system based on individuals goodwill toward othersmacroeconomics Q2: Three students have each saved $1,000. Each has an investment opportunity in which he or she can invest up to $2,000. Here are the rates of return on the students’ investment projects: Harry 5 percent Ron 8 percent Hermione 20 percent If borrowing and lending is prohibited, so each student uses only his or her saving to finance his or her own investment project, how much will each student have a year later when the project pays its return? Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r. What would determine whether a student would choose to be a borrower or lender in this market? Among these three students, what would be the quantity of loanable funds supplied and quantity demanded at an interest rate of 7 percent? At 10 percent? At what interest rate would the loanable funds market among these three students be in equilibrium? At this interest rate, which…E2 Describe the difference between the "endogenous" and the "exogenous" variables of an economic model. Which type of variable is, by construction, independent of all of the other variables in a model? In the supply/demand model of a competitive market which variables are endogenous and which are exogenous (give at least 3 of each type)?
