Disposable income   Group of answer choices increases when net taxes increase. increases when saving decreases. decreases when saving increases. increases when income increases.

Q: 1.12 Study the following diagram and answer the question that follows. Expenditures (billions of…

A: Consumption function includes the autonomous consumption and consumption dependent on Income.  MPC…

Q: ● Calculate the CPI for 2012 (using 1 decimal place). Calculate the CPI for 2013 (using 1 decimal…

A: Formula: Current year price * current year quantity  2011: (using 2011 price and 2011 quantity)…

Q: 13. According to the graph below, the equilibrium price in the market before the tax is imposed is ⠀

A: The equilibrium is established where the demand and supply are equal. The imposition of tax leads to…

Q: IS Landia production possibilities: A B 8 Fish 6 4 2 Chips 0 10 20 30 Fish Chips с Scandia…

A: Opportunity cost is the cost of producing one good in terms of other good.  Opportunity cost is…

Q: Using the following information, what is the amount of net income? $26,133 Selling expenses 6,173…

A: Net income= Gross profit - indirect expenses+ indirect incomes. Calculation of Gross profit- Gross…

Q: Calculate the discounted payback period for the project.  b) Calculate the Net Present Value of the…

A: The term "discounted payback period" refers to the length of time required to recover an initial…

Q: Hector Perez deposits $500 in a savings account. The money is left on deposit earning 4% compounded…

A: Future value will be calculated as a sum of the present value plus interest. It will be computed as:…

Q: The Coase theorem states that Select one: O A. property rights are social arrangements governing…

A: Externalities lead to the inefficient outcomes. Externalities could be negative or positive. The…

Q: Assume Company X deposits $100,000 in cash in commercial Bank A. If no excess reserves exist at the…

A: Reserve is the part of deposit that is kept out of deposit as per the rules of central bank.…

Q: 1.2 Which of the following conditions would not be studied by the macroeconomist? a) The level of…

A: A subfield of economics known as macroeconomics studies how an economy as a whole performs, is…

Q: What do free riding, the open access outcome, and congestion of a public good all have in common?…

A: Market failure refers to the condition where the market fails to achieve the socially efficient…

Q: How will each of the following scenarios impact the market for labour Workers become more concerned…

A: Equilibrium is where labor demand curve intersects labor supply curve.  Wage rate of labor is…

Q: The long run aggregate supply curve is vertical because a. the actual price level may not equal the…

A: Equilibrium is where Aggregate demand curve intersects the aggregate supply curve.  AD curve is…

Q: A utility company is considering the following plans to provide a certain service required by…

A: Future Worth provides the compounded values of the  present cash flows . FW =  ∑ Cash Flow (1+R)n

Q: Let us consider two types of goods in an economy: demerit goods and all other goods. The government…

A: A demerit good is one for which society costs outweigh individual expenses. A demerit good is one…

Q: Landia production possibilities: Fish Chips B с Fish 8 6 Chips 0 10 Scandia production…

A: Comparative advantage is the ability of the country or individual to produce the good at a lower…

Q: If a country decides to have a UBI (Universal Basic Income) policy, what are some ways using which…

A: Universal Basic Income (UBI) is a type of transfer income that all the citizens of a country receive…

Q: Annual Worth Analysis - 3 A The AW values of three revenue alternatives are $ 30,000 for A, $ 40,000…

A: The time value of money refers to the concept that tells a sum of money is worth greater now than…

Q: If two countries have differing opportunity costs of production for two goods, then: a) each country…

A: Opportunity cost is the cost of producing 1 good in terms of other. Comparative advantage is where…

Q: You can afford a $250 per month car payment. You've found a 3 year loan at 3.6% annual interest…

A: We know that to calculate the EMI we can use the formula as below, Equated Monthly Installment =…

Q: 11. The diagram below shows a profit-maximizing monopolist's cost and revenue * curves; the firm…

A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…

Q: Which of these is a possible cause of the value of the Gini coefficient increasing from 30 to 35? a.…

A: The Gini coefficient is an economic indicator that represents the income distribution in the…

Q: Assume that in December of 2021, the market for electricity was in a short-run equilibrium. Draw a…

A: Equilibrium price is the price at which quantity demanded equals quantity supplied and the market…

Q: 1.2 Which of the following conditions would not be studied by the macroeconomist? a) The level of…

A: Introduction  Macroeconomics is that part of economic theory which studies the behaviour of…

Q: QUESTION 16 Assume that we have the following two alternatives to choose from: • Option A:…

A: Economic profits is = Revenues - Explicit cost - opportunity cost.  Accounting profits = Revenue -…

Q: You have been asked to analyze what will happen to the New England market for electricity if the…

A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…

Q: Initial values are:      PX = $9500     PY = $10000   I = $15000      A = $170000   W = 160 This…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: 12 Study the following diagram and answer the question that follows. Expenditures (billions of…

A: Consumption function is consists of autonomous consumption and consumption dependent on Income.    C…

Q: Suppose that two countries (A and B) are exactly alike in every respect except that the citizens of…

A: The Solow Growth Model, an exogenous model of economic growth, examines changes in an economy's…

Q: If a bank with a required reserve ratio of 15 percent receives a deposit of $600, it now has a   a.…

A: Reserve ratio The reserve ratio is the percentage of available rent liabilities that commercial…

Q: Which of the following was a common 1970s policy response to economic shocks? a. Creating a…

A: Stagflation refers to a type of inflation that combines low rate of employment, high rate of…

Q: Use the cost and revenue data to answer the questions. Quantity Price Total Revenue Total Cost 15 90…

A: In a monopoly,  Profit is maximised where MR = MC.  MR = Marginal revenue MC = Marginal cost  In a…

Q: Consider the lottery x=(: 80, 20, : 30). Assume : RDU with u(a) = a and w(p) =p2. What is the rank…

A: Given information Lottery has outcome 80 with a probability of 1/6 20 with a probability of 1/3 30…

Q: 1.24 Study the table below and answer the question that follows. Afghanistan US 1.25 Carpets 100 500…

A: The foreign currency market plays a significant role in both the global economy and society. They…

Q: How will each of the following scenarios impact the market for money The central bank conducts an…

A: Money market equilibrium is where the money demand curve intersects the money supply curve.…

Q: QUESTION SEVEN Given the revenue function R(x) = √x²+5 a. Find the approximate marginal revenue…

A: Marginal revenue is defined as the the increase in revenue which is resulting from selling one…

Q: Long run macroeconomic equilibrium is when a. AD = LAS. b. SAS = LAS. C. AD = SAS = LAS. d. AD =…

A: Aggregate demand is the collective demand made by all buyers in the economy. Aggregate supply is the…

Q: only part b, c, d (please draw the graph manually if you can)

A: A small open economy is one that engages in international commerce but is sufficiently unimportant…

Q: 1.2 Which of the following conditions would not be studied by the macroeconomist? a) The level of…

A: macroeconomics deals with the aggregate level of economic issues. such as inflation, money supply,…

Q: When the government sector is included in the income-expenditure model, the equation for aggregate…

A: Aggregate demand is the sum of all individual demand and expenditures.  Aggregate income includes…

Q: Suppose the nominal interest rate on car loans is 11% per year, and both actual and expected…

A: An increase in the nominal price of products and services in the economy for a given period is…

Q: Firm A and Firm B sell coffee and engage in Bertrand competition. They have a constant marginal cost…

A: In Bertrand equilibrium, firms have control on prices and they change prices according to the…

Q: QUESTION 4 Assume that there is an implicit cost. Which of the following must be true? a. Accounting…

A: Explicit Costs are the actual monetary payments that are made in order to conduct business. These…

Q: input prices are w 4, and r ", what is the least cost input combination required to produce 40 units…

A: Production function: q = 4 K0.5 L0.5 Cost function: C = w L + r KC = 4 L + K The cost function is…

Q: why is Universal Basic Income not inflationary?

A: Inflation is the rate at which prices rise over a given time period. Inflation is typically defined…

Q: How will each of the following scenarios impact the market for labour The country receives an influx…

A: Equilibrium is where labor demand curve intersects labor supply curve.  Wage rate is determined…

Q: The MPs propose that we should eliminate the higher education debts of women. In line with the human…

A: Economy growth is made possible by human capital. Human capital growth in fields like science,…

Q: MPs are more interested in education policies than in childcare programs. The MPs propose that we…

A: According to the human Capitals model there is a causality betweens educational and health. When the…

Q: At an output level of $1,200 billion, there is an unplanned inventory change of   Group of answer…

A: In a closed economy, aggregate expenditure is the sum of consumption spending, investment spending,…

Q: Suppose there are 500 identicsl competitivd firms producing widgets and assume the total cost curve…

A: Profit is referred as the difference between the total revenue and total cost of production . Profit…