Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Event Raphael spends $350 to purchase a sleep test from the Medical Clinic. Raphael earns $525 per week working for Guilherme's Garden. Susan earns $850 per week working for the Medical Clinic. Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all th apply. Susan's labor Market for Factors of Production Market for Goods and Servic The $350 Raphael spends to purchase a sleep test from the Medical Clinic The $525 per week Raphael earns working for Guilherme's Garden True or False: For the economy as a whole, expenditures must equal income. True
Q: In the above graph, if the economy is currently producing at point C and then shifts production to…
A: The curve is the production possibilities frontier which shows different combinations of two goods…
Q: How many years will it take an investment to triple if the interest rate is 6% compounded…
A: Given: Future value = 3 * Present value Thus FV = 3PV Interest rate (i) = 0.06 Time (t) = ?
Q: Q1) Under what circumstances could a producer extract the entire consumer surplus in the below…
A: Consumer surplus is a measure of the benefit that consumers receive from purchasing goods and…
Q: 1. Briefly discuss the various ways monopolistically competitive firms can differentiate their…
A: A market structure known as monopolistic competition is defined by the existence of numerous…
Q: Suppose that AS = 3SAT + 2SAX and that today's price is S(0) = 50. Find (i.e., derive) the PDF for…
A: Given: ∆S = 3S∆t + 2S∆X S(0) = 50 PDF for the price of S(1) after 1 year= ?
Q: Pick one letter for the answer. During the Second World War, Germany's factories were decimated and…
A: Production possibility frontier refers to the locus of all efficient point of production level which…
Q: Which of the above 4 graphs best represents the change in the PPF if the economy decides to place a…
A: Production possibility curve refers to the graph which shows the combination of two goods produced…
Q: a. Suppose that in an economy with no government, the aggregate expenditure function is: AE =…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: If resources R1 and R2 are substitutable, the decrease in price of R1 will Select one: Increase…
A: In economics, two goods or resources are substitutes when one good can replace another good as the…
Q: 6. Foreign aid: Consider a Solow economy that begins with a capital stock equal to $300 billion, and…
A: Solow model is the economic growth model which describes long-run economic growth. It was developed…
Q: What effects do commodities, principally agricultural commodities, i.e., food, have had on the…
A: Agriculture has played a pertinent role in the economic development of many countries. It has…
Q: supply schedules of a certain commodity. Based on this information, answer questions 1, 2, 3 and 4…
A: Equilibrium is the level at which supply and demand curves are equal . At this level there is no…
Q: 500-QD Suppose the demand curve for oPad is P = 10 where P is the price of oPad and QD is the…
A: Price elasticity of demand(ep) is an economic concept that illustrates the level of sensitivity of…
Q: To investigate the impact of wage on the number of workers employed two models of labour demand are…
A: To estimate the impact of wages on the number of workers employed by the German firms two models of…
Q: Determine the dominant economic factors of the energy sector in kenya
A: The energy sector plays a vital role in the development of any country, and Kenya is no exception.
Q: QUESTION 2 Sara finally bought a pair of blue shoes that she had been coveting for a long time. In…
A: According to the endowment effect, a phenomenon in behavioral economics, people regard things more…
Q: Using the graph, complete the table that follows by indicating whether each statement is true or…
A: Price elasticity of demand is measured as the percentage change in the quantity demanded of a…
Q: ich of the following statements is (are) correct? (x) A legal maximum price at which a good can be…
A: A price ceiling is the highest amount that may be charged for an item or service under the law. It…
Q: Problem 1 Find all the mixed strategy Nash equilibria of the games shown below: Game 1: Payoff…
A: Here we have to see the Nash equilibrium. Nash equilibrium is the equilibrium in which it represents…
Q: 1. If Rob would like to purchase a new plasma TV but cannot afford to purchase it, then he does not…
A: Demand is a consumer's desire to purchase a particular good or service.
Q: Economies of Scale What will happen to the cost of producing Teslas if the Shanghai gigafactory…
A: Economies of scale refer to the reduction in the average cost per unit of output that can be…
Q: Economic Costs Owner/operators of small gas stations rarely pay themselves an hourly wage. How does…
A: The economic cost of a product or service refers to the total cost of production, including all of…
Q: A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand of the customers.…
A: To decide whether the presently owned machine should be replaced now or after 3 years from now, find…
Q: If the multiplier equals 4.5 and the AD shortfall is $82.0 million, the desired fiscal stimulus is…
A: Introduction The Marginal propensity to consume (MPC) is an important concept in Keynesian economics…
Q: Suppose you deposit $2,000 at the end of each quarter for five years at an interest rate (APR) of 8%…
A: Given: Interest Rate: 8% Compounded monthly Initial amount: $2000 No. of years: 5
Q: Define rate-of-return relative to medical school education
A: Economics rely on an approach of the rate of return instead of physician to population ratio to…
Q: Suppose that a consumer in Germany buys a Ford Mustang for a price of $30,000. Do U.S. exports…
A: Exports refer to goods and services that are produced with in the country but are supplied to…
Q: Temperature is an example of a variable that uses O the ratio scale either the ratio or the ordinal…
A: A variable can be used to measure any person, place, thing, or phenomenon in some way.
Q: 3.3. KINDOFBLUE JEANS. Two years ago, KindOfBlue jeans were priced at $72 and 121,000 units were…
A: profit is the difference between revenue and cost and more of gap between them means more profit,
Q: Suppose that, in a competitive market without government regulations, the equilibrium price of soft…
A: The price ceiling is the government-imposed maximum price for a product. A price ceiling is binding…
Q: QUESTION 9 B only Firms C and D A and B OC only A B с D Markets for Goods and Services Markets for…
A: Here we are provided the circular flow of income model in the presence of 2 sectors a) Household B)…
Q: If a tariff is introduced to a market with a downward sloping linear demand and an upward sloping…
A: A tariff is a tax imposed by a government on imported or exported goods. The purpose of a tariff is…
Q: Suppose the demand curve for a market is given by P = 64 - 4Q. Using the formula for price…
A: Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a…
Q: Price Discrimination: (short Answer) Why do airlines charge different fares for the same flight?
A: Monopoly is a market arrangement in which there is just one seller and only one type of goods…
Q: Refer to the News Wire to answer one question. NEWS WIRE: DISCOUNT RATES Fed Cuts Key Interest Rate…
A: Given: Interest rate at the beginning = 2.75% Interest rate now = 0.25%
Q: In an effort to increase the amount of housing development in Los Angeles a new zoning ordinance has…
A: Market equilibrium is a state in economics where the supply of goods or services in a market is…
Q: What is the main purpose of a social welfare function? O To help us match buyers and sellers in…
A: A social welfare function is a mathematical depiction of a society's total well-being that accounts…
Q: If the CPI for January 2008 is 208.837 and the CPI for December 2018 is 255.539, wh is the average…
A: CPI measures the value of market basket of goods and services purchased by a buyer. Inflation in an…
Q: Can a “Black Market” be justified? First answer either YES or NO. Describe why be explaining your…
A: A black market is a platform in which lots of transactions are carried out either physically or…
Q: Suppose the labor market is initially at its equilibrium, i.e., labor supplied equals labor…
A: Since you have asked multiple question, we will answer first question for you. If you want any…
Q: 1. What is meant by opportunity cost? Give an example. Suppose that you need to take a class at 3PM,…
A: Opportunity cost alludes to the cost of an alternative that should be provided up to seek after a…
Q: A minor league baseball team raised the average price of its tickets from $8 to $8.90 and found that…
A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…
Q: Question: You read a newspaper report that compares wages paid to employees at Starbucks in India…
A: Hourly pay rates refer to the amount of money that an employee is paid for each hour worked. It is a…
Q: The price of a product was $0.88 in the year 2008 and $1.28 in the year 2018. What is the average…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A person needs $17,700 immediately as a down payment on a new home. Suppose that she can borrow this…
A: The practice of earning income on an investment over a typical amount of time is known as…
Q: Why are supply functions typically assumed to slope upwards in competitive markets? Because barriers…
A: Supply curve is a graphical representation of the correlation between the cost of a good or service…
Q: QUESTION 5 If Asma can produce donuts at a lower opportunity cost than Reem, then O A. Asma should…
A: There is always a trade off among good when a decision is made. Opportunity cost refers to the loss…
Q: QUESTION 4 Estimate the selling price per cover, Sales and costs (E0000) 15 13 - Break-even point…
A: Total Sale Value = Price per unit * number of units sold => Price per unit = Total Sale Value /…
Q: why do major events such as wars cause the national debt to increase
A: Government expenditure refers to the expenditure taken by the government on various developmental…
Q: What is the value of a preferred stock that pays a perpetual dividend of $120 at the end of each…
A: Preferred stock provides the Fixed income to investors when the stock is issued. It gives priority…
Circular flow model shows how the money transfers among house and firms through markets of goods and services and factors of production.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- DI=Y OUTPUT/INCOME CONSUMPTION(C) SAVINGS (S) MPC MPS APC APS 0 80 ______ ____ _____ _____ _____ 100 140 _______ _____ _____ _____ __ ____ 200 200 _______ _____ _____ _____ _____ 300 260 _______ _____ ______ ______ _____ 400 320 _______ ______ ______ ______ ______ a. Complete the following chart above b. Show graphically ( what is the equilibrium level of output)? c. Assume the following general forms of a…i need this in word not handwritten Q7. Assume that in 2015, the following prevails in the Republic of Nurd: Y = $200 G = $0 C = $160 T = $0 S = $40 I (planned) = $30 Assume that households consume 80 percent of their in- come, they save 20 percent of their income, MPC = 0.8, and MPS = 0.2. That is, C = 0.8Yd and S = 0.2Yd. Is the economy of Nurd in equilibrium? What is Nurd’s equilibrium level of income? What is likely to happen in the coming months if the government takes no action? 2. If $200 is the “full-employment” level of Y, what fiscal policy might the government follow if its goal is full employment? 3. If the full-employment level of Y is $250, what fiscal policy might the government follow? 4. Suppose Y = $200, C = $160, S = $40, and I = $40. Is Nurd’s economy in equilibrium? 5. Starting with the situation in part d, suppose the government starts spending $30 each year with no taxation and continues to spend $30 every period. If I remains constant, what…3. An economy shows the following featuresConsumption, C = 50 + 0.9YdTax Revenue, T = 100Investment, I = 150 – 5iGovernment Expenditure, G = 100Money demand, L = 0.2Y – 10iMoney Supply, M = 100Exports, X = 20Imports, M = 10 + 0.1YN/BYd is the disposable incomeRequired,(a) Obtain the IS and LM equations of the economy(b) Find the equilibrium income and rate of interest(c) Find the balance of trade
- 1. What would happen to multiplier if investment were to be positively related to income? 2. is it possible for total saving to fall when people beome more thirfty? 3. What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on consumption?Please see attachment Answer neatly Show all your work. Based on the above diagram: 1. Calculate MPC? 2. If Private Investment increases by 100, calculate the new level of NI. 3. If full-employment NI is at 3000, by how much should Government spending change? 4. What is the new NI, If 1/2 of those government expenditures are financed through taxes?Consider the following NIPA data for 1Q2021 (First Quarter 20210 $ billlion) Investment: Non Residential $2,948.3 Exports $2,305.3 PCE Goods $5,183.5 Investment: Residential $1,043.7 Government Expendiures Federal $1,557.0 PCE Services $9,857.7 Imports $3,152.3 Governemnt Expenditures : State and local Goernent Expenditures $2,395.9 Change in private inventories -$90.1 2a. Compute the weights of each of PCE, GPDI, NX and GOV) in GDP 2b. Consider the following rates of change (%) for each of the above items. % change PCE 10.70% GPDI -5.00% NX -6.80% GOV 6.30%
- 1. Suppose that the economy can be described by the following equations: C = 400 + (8/9)*DI I = 300G = 800T = (1/2)*Y (X – M) = 0. a. If national income (Y) increased by $1, by how much would consumption increase? What is the name of this concept?b. Find the equilibrium level of output.c. The budget for this fiscal year increases government spending by $50. i) Sketch the effect of the increase in government spending.ii) Calculate the new equilibrium level of income.iii) Calculate the change in income and compare to the increase in government spending. Comment.iv) Given your numerical answer in part (iii), calculate the change in national income when government spending increases by one dollar.v) Derive the actual value of the fiscal multiplier using an algebraic equation. Compare to part (iv).Now G assumes its original value of G = 800.d. Congress decreases the tax rate from (1/2) to (1/4) i) Sketch the effect of the decrease in the tax rate. ii) Calculate the new equilibrium level of…2. In macroeconomic theory, total or aggregate spending is denoted by A and total or aggregateproduction of income by Y. Which one of the following statements is incorrect? A When A is greater than Y, there is disequilibrium and Y will tend to increase.B When A is equal to Y, there is equilibrium and Y will remain unchanged.C When A is less than Y, there is disequilibrium and Y will decrease.D When A is greater than Y, there is disequilibrium and A will decrease.part 4 5 6 neede d i need this in word not handwritten Q7. Assume that in 2015, the following prevails in the Republic of Nurd: Y = $200 G = $0 C = $160 T = $0 S = $40 I (planned) = $30 Assume that households consume 80 percent of their in- come, they save 20 percent of their income, MPC = 0.8, and MPS = 0.2. That is, C = 0.8Yd and S = 0.2Yd. Is the economy of Nurd in equilibrium? What is Nurd’s equilibrium level of income? What is likely to happen in the coming months if the government takes no action? 2. If $200 is the “full-employment” level of Y, what fiscal policy might the government follow if its goal is full employment? 3. If the full-employment level of Y is $250, what fiscal policy might the government follow? 4. Suppose Y = $200, C = $160, S = $40, and I = $40. Is Nurd’s economy in equilibrium? 5. Starting with the situation in part d, suppose the government starts spending $30 each year with no taxation and continues to spend $30 every period. If I…
- 4. A country’s consumer spending is defined by the following equation:Consumer spending = 365 + 0.75 (Disposable Income)a. Draw a diagram to represent this equation. b. Assuming no government, what will the Marginal Propensity to Save (MPS) in this country.c. What will be Consumer spending if disposable income in this country is 1000? d. If suddenly this country’s wealth increases, how do you think the equation might change.Also show it in a diagram.Suppose we are in an economy with rich households and poor households. Rich and poor households have different consumption functions, with Cpoor = 100 + 35(Y poor − Tpoor) Crich = 100 + 15(Y rich − Trich) where Y rich, Y poor are the incomes of rich and poor households and T rich, T poor are the taxes faced by rich and poor households. We also have I = 200,G = 100, T = T poor + T rich = 100. Closing out the model, Y = C + I + G = Cpoor + Crich + I + G a Suppose that Y poor = Y rich Y2 (in other words, the total income of poor households is equal to total income of rich households.) Supposing further that T rich = T poor = 50, calculate equilibrium output Y . b Now suppose that Trich = 40,Tpoor = 60. What is equilibrium output now? c How can the government increase output without changing the deficit (hint: think about the difference between output in b and output in c.) d Now assume that T rich = 40, T poor = 60, but instead of output being split equally between rich and poor…Hi there . can you please assist on the folloiwng question below. Use the following information on economy X to answer the questions below.Consumption function: C = 250 + 0.8YInvestment spending: I = 150Government spending: G = 500Exports of goods and services: X = 200Imports of goods and services: Z = 150Proportional tax rate: t =25%Full employment level of income = 3575 Q1.1 Calculate the change in government spending required to reachfull employment level of income.