Discuss how useful the price mechanism is in tackling the basic economic problem?

Q: In this market, the equilibrium hourly wage is $ and the equilibrium quantity of labor is thousand w...

A: Equilibrium wage and quantity is found where the demand and supply curves intersect. In the diagram,...

Q: • Which of the following is not typically an element in the structural change that accompanies devel...

A: The answer is -  d. All of the above changes accompany development.

Q: Prohibiting the affordable housing lottery winners from subletting their apartments . . . (a) Essent...

A: Prohibiting the affordable housing lottery winners from subletting their apartments means to ban the...

Q: XYZ company can manufacture their own products and sells them. They are able to control the demand b...

A: To get the profit maximizing units of output we differentiate the profit function with respect to D ...

Q: Price (dollars per unit) Price (dollars per unit) Quantity (units per month) Quantity (units per mon...

A: Deadweight loss refers to the loss to society due to inefficient quantity produced.

Q: Design a two-player game with the property that “the payoff for Playerl is Playerl plays a strategy ...

A: Nash equilibrium is a concept within game theory where the optimal outcome of a game is where there ...

Q: Draw the short-run average total cost (ATC), average variable cost (AVC), and marginal cost (MC) cur...

A: Average total Cost is the total cost per unit of output. Average Variable Cost is the variable cost ...

Q: As indicated, some of the cash flows are expressed in future (then-current) dollars and others in cu...

A: As per the question, nominal interest rate = Real interest rate + Inflation Rate=10%+6%=16% or 0.16....

Q: LRAS Y The long run aggregate supply (LR AS) diagramatical function is vertical because: I. The natu...

A: LRAS is the long-run aggregate supply curve. This curve determines the macroeconomic level of supply...

Q: Utilitarianism definition

A: It is one of the morality theory.  It proposes actions that cause happiness.  It opposes actions tha...

Q: Consumption 45 line C3 CA 45 Income Refer to the above diagram. The MPC and APC are both constant as...

A: Answer -

Q: I. Increase in interest rates causes the supply curve to shift. II. Monetary expansion causes a decr...

A: Here, four states about the market is given where supply and demand curve are affected by various de...

Q: Which of the following options is not a means of retaining employees? Select the single best answer:...

A: As the economy recovers, a skilled labour shortage looms, and there is a demonstrated link between l...

Q: Analyze the given text, then make a decision. Be sure to give logical reasons for your decision. Mak...

A: The region, although is rich in natural resources, suffers from a dismal economy, with half of the p...

Q: Why is saving important for economic growth and development

A:   Meaning of Economics: The term economics refers to the situation under which there remain transact...

Q: Q1. Bob has a utility function defined over goods 1 and 2: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2} Co...

A: u(x1; x2) = min{6*x1 + x2, x1 + 2*x2}

Q: Explain three limitations of Gross Domestic Product.

A: Gross domestic product (GDP) refers to the total market value of goods and services produced by a co...

Q: nsider the economic model: Yt Ct +i %3D Ct myt-1 it act-1 here y is GDP, c is consumption, i is inve...

A: Gross domestic product (GDP) is the standard measure of the value added created through the producti...

Q: If 1 million people are unemployed and 9 million people are employed how large is the labor force? 1...

A: People who are willing to do work but cannot find job are considered as unemployed. People who are w...

Q: Compute the risk premium of the following lottery assuming that u(x) = vx (16, 0.25; 4, 0.75)

A: We are going to find Risk Premium using Certainty equivalent to answer this question.

Q: Consider the following graph and choose the correct option: MC $18 E ATC AVC 14 12 B - 10 Minimum av...

A: The given graphs shows different types of cost curves of a firm, such that average variable cost cur...

Q: 3. Standard of living of a country can be raised if it increases A. O Labour force B. O Production C...

A: "Correct answer is option B- production."

Q: Discuss the following statements : explain whether the statement is TRUE or FALSE, and provide justi...

A: Two utility functions that provide the same rank ordering of consumption bundles are positive monoto...

Q: In the market for lattes, researchers have estimated the following demand and supply curves, Demand:...

A:

Q: If the inflation rate is 3% per year, how many years will it take for the cost of an item to double,...

A: GIVEN    If the inflation rate is 3% per year, how many years will it take for the cost of an item t...

Q: Notes A. The price of gasoline increases from 16 per barrel to 30 per barrel and as a result, the de...

A: We will answer the first question since the exact one was not specified. Please submit a new questio...

Q: A competitive tire manufacturing industry spews emissions into the air at a marginal cost of 1.5-q, ...

A: A pollution tax is a tax issued by the government for covering the negative externalities created by...

Q: The multiplier for the economy in the above diagram: a. is 3 b. is 4.8 C. is 4 d is 5.2

A: The measure that depicts the final value of goods and services being produced in a year during an ec...

Q: What is your major take away from Thomas Dye’s definition of public policy)?

A: To find : Highlights from thomas dye definition of public policy. 

Q: 6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not ne...

A:   Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and scarcit...

Q: u(x,y) = x + y Px=9 Py=3 U=120 Solve for hicksian demand for good x and y

A: Given  Utility function: ux,y=x+y            ... (1) Price of good x Px =9 and price of good Y is PY...

Q: Which of the following statements is correct?   A) Employment rate + unemployment rate = 1 B) Partic...

A: The statement which follows the definition is always true.

Q: Consider the following totai cost function: TC = 1500 + 300Q - 36Q2 + 203 What is the quantity that ...

A: TC = 1500 + 300Q - 36Q2 + 2Q3 Differentiate TC w.r.t Q to get MC => MC = dTC / dQ => MC = 300 ...

Q: State whether True or False and "explain" (answers without explanation get no credit): Demand for a ...

A: The relative change in quantity demanded owing to a change in price is measured by price elasticity ...

Q: definitely result in a higher equilibrium quantity in the market? A. demand increases and supply dec...

A: Option E  Option B and D would lead to a higher equilibrium quantity.  Rest will either decrease or ...

Q: 1. Suppose that, instead, a price ceiling of Pc = 10 is imposed by the government Find the equilibri...

A:

Q: Population: Adult Number of Number of Number of populationadults (number employed: unemployed:in the...

A: The labor force participation rate is an estimate of an economy's active workforce. The formula is t...

Q: For K > 0 and L> 0, the production function F(K,L) = 2KL + K has a. increasing returns to scale b. d...

A:

Q: S. D. D.

A: Due to soaring pandemic demand, there is a sudden increase in demand at the current price level. As ...

Q: A two product firm faces the following demand and cost functions: Q1 = 40 - 2P1 - P2            Q2=...

A: Given: The demand function for a product is:  Q1 = 40 - 2P1 - P2Q2 = 35 - P1 - P2 And the cost funct...

Q: Which of the following is the best example of "what goods and services should be produced?" the prod...

A: We know whether it is developed or underdeveloped countries each has to face the central problem whi...

Q: Now consider the economy in the steady state: The steady state is defined as a point in the long run...

A: A system or process is considered to be in a steady state in systems theory if the factors that desc...

Q: In the market for a normal good, an increase in income will cause an increase in _____, an increase ...

A: Normal goods are a type of good that the demand and income are positively related. So it has a posit...

Q: For these examples you will be looking at the hamburger (a normal good) market. Identify the delermi...

A: Normal goods refer to those goods which show the positive relationship between income and demand for...

Q: Do you think a free market or a command economy is more likely to encourage productive and entrepren...

A: Command economy and free market are two opposite firms of an economy because command economy is the ...

Q: How is a country's economic well-being enhanced through free international trade in goods and servic...

A: International trade refers to the exchange of products and services Bete two nations in the global m...

Q: When a tax is placed on the sellers of cell phones, the size of the cell phone market a. and the eff...

A: Given:- Tax placed on cell phone seller To determine:- Size of cell phone market=?

Q: B. As a result of a change in income from 1,975 to 3,875 per month, the consumption of good X change...

A: A good is a normal good when increase in income increases its demand and inferior if increase in inc...

Q: SOLVE AND GRAPH THE PROBLEM. What is the present worth of two P100 payments at the end of the third...

A: Given Third year-end payment = P100 Fourth year-end payment =P100 Annual rate of interest =8%

Q: Hira has Rs.1200 a week to spend on yogurt and mangoes. The price of yogurt is Rs.200, and mangoes a...

A: The budget line, additionally referred to as the budget constraint, exhibits all the mixtures of 2 c...