Q: The aggregate demand and the aggregate supply model allows us to examine how a variety of events can…
A: In economics, the relationship between the quantity of a good or service that producers want to sell…
Q: Question!: / XP₂ ((1-x) p₁ 1-α in = h₁ (p₁u) b₂(pin) = ((1-4) p.) ² u apz V[p,w) = α²² (1-a)1-a N…
A: Here the highest equivalent lump sum tax would be such that, the utility the consumer receives with…
Q: What are economic benefits of using biodegradable plates? Explain..?
A: Sustainable development is a getting sorted out the standard for meeting human improvement…
Q: Let's consider the market for spaces in medical schools (for doctors, say). Suppose the demand for…
A: i, ii) In equilibrium, Qd = Qs. 120 - 0.5P = 0.5P P = 120 The equilibrium price in this market is…
Q: A heavy equipment manufacturing company has produced its first unit using 3500 hours and $300,000…
A: Production costs can include a variety of expenses, such as labor, raw materials, consumable…
Q: A) -Rhea's MRS is unaffected by the price change, -Rhea's optimal budget decision rule is unaffected…
A: Here we have 2 goods milk (M) and breads (B). And the corresponding marginal utilities are: MU_M…
Q: given goods A and B and a budget, if the relative price of A were to increase, the budget line…
A:
Q: A corporate bond returns 12 percent of its cost (in present value terms) in the first year, 11…
A: Given that, A corporate bond return in first year = 12% or 0.12 A corporate bond return in second…
Q: An engineer borrowed P1,000,000 to start a business with an interest rate of 13% per year. The term…
A: Loan Amount = 1,000,000 r = 13%
Q: Mention and briefly explain the economic consideration in aviation industry
A: Economic considerations refer to aspects of the procurement or production of a good or asset that…
Q: If you win the lottery $1.5 million price, which is the better option - taking the money now, or…
A:
Q: what is the defintion of money? If it is an economic concept, define the concept and describe it key…
A: Money is a good that is widely acknowledged as a means of economic exchange.It serves as the medium…
Q: Mango Systems believes that demand for its pet e-mouse follows a linear demand equation: Quantity =…
A: A connection between cost, sales, and profit is established via the contribution margin idea. The…
Q: Draw a circular flow diagram. Identify the parts of the model that correspond to the flow of goods…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first 3 subparts for you as…
Q: List and discuss the two (2) main instruments of fiscal policy
A: Fiscal policy is one of the significant action of the government as it is used to influence the…
Q: Question 35- 100 80 30 What is the deadweight loss of monopoly? 1275 1125 1500 O1000
A: Monopoly is where the only single firm exists. There will always be a deadweight loss in case of…
Q: Assuming that a few firms control gasoline supply and talk to each other to reduce supply, what…
A: Supply: It refers to the goods and services that are available in the market. The increase in the…
Q: 10. Dependent & independent variables; positive & inverse relationships: Consider the curve labelled…
A: Equilibrium refers to the point where demand curve intersect supply Curve
Q: If the price level rises and the money wage rate remains constant, what happens to the quantity of…
A: Real wages are those that are calculated with inflation taken into account. On the other hand, cash…
Q: Please explain why this statement is (False). The unbiased expectations hypothesis of the term…
A: The unbiased expectations hypothesis expresses that the forward loan costs are unprejudiced…
Q: What is NOT a reason for governments to fund education?
A: Education is good which creates positive externalities in an economy . This means by educating…
Q: ABC Co. has $400,000 in taxable income. $100,000 of this is active and $80,000 is foreign business…
A: Tax liability is the total amount of tax that people and companies owe to the federal, state, and…
Q: Consider an economy that only produces the two goods of Pizza and Calzones. What is Nominal GDP if…
A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…
Q: Question 5 [Consider a small open economy such as Australia. If Australia’s saving rate (gross…
A: A trade surplus is a positive indicator of a country's trade balance in which exports exceed…
Q: B. Suppose that the economy is characterized by the following behavioral equations: • C= 240 +0.75…
A: Here we are given various components of the demand function: consumption , investment &…
Q: Your friend deposits $100,000 into account paying 8% per year. He wants to know how long it will…
A: The monthly interest payment represented as a percentage of the lent, deposited, or borrowed money…
Q: Nominal and effective interest A building is priced at $300, 000. If a down payment of $20,000 is…
A:
Q: Suppose Billy started working at a graphic design firm in 2014 at a nominal wage of $16 per hour. In…
A: Real wages are salaries that have been increased to account for inflation, or salaries that are…
Q: he aggregate demand for a cup of coffee in Chicago for each day is given by q = 4,000 - 500 p, where…
A: Given The aggregate demand equation for a cup of coffee in Chicago is q=4000-500p…
Q: Why does the government control trade?
A: Government plays a significant role in managing an economy especially the trade transactions among…
Q: two firms face the direct market demand curve given Q = 15-p, where Q = 9₁ +92 and q2 are the…
A: There are only two firms in the cournot duopoly. These two firms competes on the basis of output.…
Q: Section 2: Long Answer 1. A firm has technology described by q = KL. Set out the firm's long-run…
A: Cost = w*L + r*K where w is wages and r is rent for capital
Q: An engineer who was contemplating retirement had $1.6 million in his investmen portfolio. However, a…
A: Present worth (PW) is the current worth of a future amount of money or stream of cash flows given a…
Q: Depository institutions, nondepository institutions, and commercial banks Group of answer choices?…
A: A financial institution in the United States that is legally permitted to take deposits of money…
Q: B. Suppose that the economy is characterized by the following behavioral equations: • C = 240 +0.75…
A:
Q: 1. A tiny economy only produces baseball bats and sells them in dollars. In 2020, they produced 500…
A: Nominal GDP will be a Gross domestic product that is assessed at the current market costs. Gross…
Q: 10. Which of the following is usually considered a cost of GDP growth? A. Higher life expectancy B.…
A: GDP refers to the total amount of goods and services produced in an economy in a year. GDP is…
Q: The marginal product of effort, a typical worker in fast-food burger joint, is one-…
A: The marginal product of an input is the extra output that results from adding one unit of that input…
Q: Consider an economy with production function given by Y = AK0.5 10.5 where A is the total factor…
A: At optimum, marginal product of labor is equal to real wage rate. Marginal product of labor is the…
Q: On the example of your interst precisely explain circular market flow including factor market and…
A: There are basically three kind of market which are goods and service market, factors market and…
Q: ce; B: trade restrictions; C: currency differences).
A: International trade aims to export and import goods and services with lower barriers on trade…
Q: The company that you manage has already spent $8 million on developing a new product – a website…
A: A finished good or consumer good is a final product ready for sale that is utilized by the consumer…
Q: Jerry James might consider buying a nominal Treasury Bond rather than Treasury Inflation Protected…
A: Treasury Inflation-Protected Securities (TIPS) are one type of debt securities offered by the U.S.…
Q: Suppose that the economy is characterized by the following behavioural equations: • C = 300+ 0.3 Yd…
A:
Q: A consumer has preferences over two goods, carrots and turnips, each measured in kilograms. For each…
A: Consumer preference is a term that alludes to consumers' decisions to expand their fulfillment.…
Q: Is this a positive economic statement: The 2022 FIFA World Cup is scheduled to be the 22nd running…
A: Positive economic statements are not based on opinions and judgment; rather these are objective and…
Q: Suppose the utility function of a consumer is characterized by U(x1, x2) = 2x1 + 3x2. Find the…
A: The given utility function is a utility function for 2 perfect substitute goods X1 & X2. And…
Q: Which of the following is NOT true about price floors if they are binding (i.e., above the…
A: The Floor price is fixed by the government or government designated authority. The price can not…
Q: You borrow $ 27965 at 12.25 % interest compounded monthly. If you are unable to make any payments…
A: We use the compound interest formula to calculate the amount due at the end of 5 years. The formula…
Q: Four Seasons Brewery has a variety of costs. Label which cost is EXPLICIT and which cost is…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Step by step
Solved in 2 steps with 2 images
- You just made an investment in an insurance policy that is guaranteed to pay you $1.8 million 20 years from now provided you live that long. What will be the purchasing power of that amount with respect to today’s dollars if the market interest rate is 8% per year and the inflation rate stays at 3.8% per year over the 20-year period?You are saving to buy a car which in 2022 costs $30,000. You intend to make 36 equal consecutive payments to an account starting one month from now. The interest rate is .5% per month, compounded monthly. If the inflation rate is 4% per year compounded annually, how much in actual dollars should the periodic payments be.The future amount of P100,000 for a period of 8 years is equal to P341,655.49. Considering money is worth 10% per year with an inflation rate of "x " per cent per year, find the value of inflation rate.
- If the Consumer Price Index was 208.5 on January 1, 2010, and 10 years after it was 516.71. What was the inflation rate, compounded annually, over that 10-year period? If that rate continues to hold for the next 10 years, what Consumer Price Index can be expected on January 1, 2030?A mutual fund investment is expected to earn 11% per year for the next 25 years. If inflation will average 3% per year during this 25-year period of time, what is the compounded value (in today’s dollars) of this savings vehicle when $10,000 is invested now?Calculate the present worth of $35,000 to be received 6 years from now, if the predicted real rate of return is 15% per year and the inflation rate is 10% per year. The present worth of $35,000 is $ .
- Well-managed companies set aside money to pay for emergencies that inevitably arise in the course of doing business. If a commercial solid waste recycling and disposal company puts 0.5% of its after-tax income into such an account, how much will the company have after 7 years, provided the company’s after-tax income averages $15.2 million per year? The inflation and market rates are 5% per year and 9% per year, respectively.A machine cost $2,550 on January 1, 2014, and $3,930 on January 1, 2018. The average inflation rate over these four years was 7% per year. What is the true percentage increase in the cost of the machine from 2014 to 2018? (a) 14.95% (b) 54.12% (c) 7.00% (d) 17.58% (e) 35.11%.Find the cost of each item in five years, assuming a constant inflation rate of 9% E.) HD TV set, $1600 F.) Small car, $19,000 G.) Large car, $28,000
- If the market interest rate is 12% per year and the inflation rate is 5% per year, the number of future dollars in year 7 that will be equivalent to $2000 now is best represented by the equation: (a) Future dollar amount = 2000(1 + 0.198)7 (b) Future dollar amount = 2000/(1.198)7 (c) Future dollar amount = 2000(1 + 0.12)7 (d ) Future dollar amount = 2000/(1.07)7You just made an investment in an insurance policy that is guaranteed to pay you $2.3 million 20 years from now provided you live that long. What will be the purchasing power of that amount with respect to today’s dollars if the market interest rate is 8% per year and the inflation rate stays at 4.7% per year over the 20-year period? The purchasing power of this amount is $ .WHAT IS THE INFLATION RATE IF THE PRICE OF AN ELECTRIC FAN BECOMES P2000.00 IN 5 YEARS FROM THE ORIGINAL PRICE OF P1200.00?