Explain 4 limitations that National Income Statistics have in determining a country's economic welfare

Q: price D' The movement from D to D' could be caused by O a decrease in price of a complement O an…

A: Demand curve shows how much quantity is demanded at a given price.

Q: What type of variable is Log GDP per capita?

A: GDP per capita - Gross Domestic Product it is a measure of the economic total output of a country.…

Q: Examples of climate mitigation policies include all of the following except. Select one: O carbon…

A: Mitigation involves the stabilization and/or reduction of emissions of greenhouse gas and their…

Q: A: Reserves on hand $38,000 Deposit in the Fed $30,000 US government bonds $12,000 Checking account…

A: The monetary base, also known as the monetary or high-powered money, refers to the total amount of…

Q: A car costs $30,000 in the United States and 3,300,000 yen in Japan. The exchange rate is $1 = 102…

A: Purchasing power parity (PPP) is a popular metric used by macroeconomic analysts that compares…

Q: A company estimates that the weekly sales q of its product is related to the product's price p by…

A: Given the function of company sales, q and product price p is q=11900p103. We have to find the…

Q: value of the land. The more planes that fly, the lower is the amount of profits that the developer…

A: Airports total profit = 48X - X2 Developers total profit = 60Y - Y2 - XY

Q: Exercise 6.4. Suppose there are only two companies (1 and 2) that fix flat tyres in the local…

A: The Duopoly model is a type of oligopoly model where there are two sellers and numerous buyers in…

Q: Checking account deposits are first counted in this official measure of the money supply. OM2 O M1 O…

A: Money supply refers to the total stock of money available in an economy at a given point in time. It…

Q: c. The United Nations have constructed an index of overall 'world happiness' that is given by the…

A: World Happiness = 2×(Happiness Score) + 3Life Expectancy

Q: When the Fed says it's a "lender of last resort," it means

A: The Fed is the Country U's central bank. It was created by Congress to give the nation a secure and…

Q: Derive the constant growth rate rule. You want to start from the following equation: Yt+1 - Yt Yt 9…

A: Constant growth rate refers to a fixed rate at which a variable or entity increases or decreases…

Q: Machine X has an intial cost of $10,000. It is expected to last 12 years, to cost $200 per year to…

A: The initial cost of the machine (FC)=$10,000 Life =12 years Annual maintenance cost =$200 Salvage…

Q: Using the appropriate graphs and terminology, explain why a city with 30,000 people is likely to…

A: The hospital industry is a monopoly industry here as it is highly regulated industry and not…

Q: a) Suppose a firm A produces a product q, but also pollution x that affects a second firm B. Firm A…

A: Cost function of firm A =  q2 + (x- 4) 2 Price of good A's firm = 12    Cost function of firm B = r2…

Q: c) Suppose the inverse demand curve in a market is D(p) =a-bp, where D(p) is the quantity demanded…

A: The concept of price leadership refers to a situaton where one firm in a  market , known as the…

Q: 1. Define the unique characteristics of the GDP gap.

A: GDP (Gross domestic product ) refers to the monetary value of all final goods and service that is…

Q: List the stages of economic integration

A: Economic integration: It is the process by which countries or regions eliminate trade barriers and…

Q: 4. Assume that fruit-picking can be done by children or adults, but that adults are twice as…

A: Production function Q=10*(2LA+LC) LA--- adult labor LC---child labor Price of LA=100 per day Price…

Q: Explain the effect of tax increases on savings on aggregate supply using the model of the…

A: Aggregate supply depicts the combination of the price level and aggregate quantity supplied by the…

Q: The period of time long enough to allow a firm to vary all of its inputs, to adopt new technology,…

A: We have to identify which time is long enough for a firm, to vary all of its inputs, to adopt new…

Q: Suppose that the market interest rate in an economy is 9 percent and a bond promises to pay $735…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Money held for emergencies represents the: A. Crisis demand for money. B. Disaster…

A: The transactions demand for holding money occurs when the money is hold by people to transact…

Q: = Priyanka has an income of £90,000 and is a von Neumann-Morgenstern expected utility maximiser with…

A: The Von Neumann-Morgenstern (VNM) utility index is an index that depicts an individual's preference…

Q: The Return of Detroit City: Enpar manufactures engine parts for Ford using steel as an input. Enpar…

A: The two plants have different production functions. The total amount of steel available to the…

Q: Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each…

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

Q: Bank AAA has $15 million of fixed-rate assets, $30 million of rate-sensitive assets, $25 million of…

A: DISCLAIMER  “Since you have asked multiple questions, we will solve the first three questions for…

Q: wo of the candidates-Manuel and Poornima-are currently viewed as right of the median voter, and Shen…

A: Here we are given the distribution of voters on the extreme left to extreme right scale. And these…

Q: Long run monetary neutrality implies that fiscal policy can only change output, not prices, in the…

A: Money neutrality says that money is neutral in the long run.

Q: 1. Hertz and other car rental companies charge much more to rent luxury cars such as Ferraris and…

A: As per the guidelines of BNED, we have to attempt the first question from multiple questions. Please…

Q: 1. Consider a deterministic DGE model where time lasts for two periods. = Σt=0Btu(ct); The…

A: Dynamic stochastic general equilibrium (DGE model) is a macroeconomic method of explaining…

Q: Suppose there is a country called Solowland whose output (Y) is produced using capital (K), labour…

A: In this question, we are exploring the concepts of the Solow growth model in the context of two…

Q: onsider a homogeneous goods industry where two firms operate and the linear demand is given by p(y1…

A: Given information Market demand curve: py1+y2=a-by1+y2 Here p is the price and y1 and y2 is the…

Q: In this market, the equilibrium hourly wage is $ Suppose a senator introduces a bill to legislate a…

A: The research and analysis of the job market and the connections among workers, their employers, and…

Q: Using the table below, if business investment expenditures now becomes: is decreased to

A: Aggregate expenditure is the sum of consumption (C), investment (I), government purchases (G), and…

Q: 4. Explain why firms in perfect competitive markets have no incentive to advertise for their…

A: Perfectly competitive markets are market structures characterized by the presence of numerous buyers…

Q: Consider a homogeneous goods industry where two firms operate and the linear demand is given by p(y1…

A: Cost function for leader firm :  c1(y1)=cy1 Demand function: D(p) =a-bp Y = a -b p  p = ( a - y) /b…

Q: What does the term ‘globalization’ mean to you, and how does it relate to the idea of world…

A: Economic development refers to sustained and concerted efforts to improve the overall economic…

Q: 8. a) Suppose a firm A produces a product q, but also pollution x that affects a second firm B. Firm…

A: Cost function of firm A  CA(q,x) = q2 + (x - 4)2 PA = 12   Cost function of firm B CB(r,x) = r2 + xr…

Q: Suppose a firm A produces a product q, but also pollution x that affects a second firm B. Firm A is…

A: A competitive market is a market where there are many buyers and sellers, all of whom have access to…

Q: Suppose a monopolist's per-period demand curve for a new computer chip is given by p = 100 - 0.25q,…

A: A monopolist is a single entity or firm that has exclusive control over the supply of a particular…

Q: Given attribute cutoffs of Price = 5, Quality = 5, and Weight = 4, which of the following would be…

A: The disjunctive decision rule will make an establishment minimum performance level for each vital…

Q: The amount of education the typical person receives varies substantially among countries. Suppose…

A: According to the neoclassical model, or Solow growth model, economic growth cannot be produced by…

Q: MARKET SEGMENTATION: Type III Discrimination: Price per customer segment A company has…

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

Q: If a monopolistic firm has an increasing marginal cost (MC) curve, it is not in its interest to…

A: Monopolistic market is the type of market in which there are many buyers and sellers. The product…

Q: Mike has two identical brothers. Each of them have the same utility function below. If Mike and his…

A: To determine the aggregate demand at each price of X, we need to find the optimal quantity of X and…

Q: Nancy’s Notions pays a delivery firm to distribute its products in the metro area. Delivery costs…

A: The present worth of an investment or a project refers to its current value based on its expected…

Q: Suppose that a person's wealth is $40,000 and that her yearly income is $60,000. Also suppose that…

A: Money demand in economics refers to the desire of individuals and businesses to hold money for…

Q: Three GenCos and three LSEs (load serving entities) participate in a centralized electricity market.…

A: Multiple generators offer to sell power at various rates in a centralized electricity market, while…

Q: (a) What is the main economic argument against the 1998 Copyright Term Extension Act (which extended…

A: Copyright is a legal concept that grants the creator of an original work exclusive rights to control…