In your own words, explain the concept of the “invisible hand” as it relates to economic theory. Why is it that an entrepreneur with seemingly selfish motives can create benefits for the larger society? Why is this a benefit that arises from capitalism and not from other economic systems?

Q: A mortgage where the borrower pays only interest during the construction phase and then rolled over ...

A: The answer is - B. Construction to permanent Mortgages.

Q: Given one procedure or service provided by certain hospital, all different payers would be charged t...

A: The market is a location where the transaction of services and commodities takes place. It is import...

Q: As a manager of a chain of movie theaters that are monopolies in their respective markets, you have ...

A: Pricing Strategy is an apparatus used to fix the cost of a specific item or administration by consid...

Q: A. Imagine the labor demand for low-skilled workers. Graph the market for low-skilled labor services...

A: Below is the given values: Equilibrium wage = $12 Equilibrium quantity = 100  

Q: Check My Work The Widespread Reach of Economies. Explain why the science of economics is roncerned w...

A: Studying economic events at the micro-level and macro-level answers different economic questions

Q: In a private closed economy where MPC = 0.90, if consumers reduce their spending by $5 billion and f...

A: Given the MPC = 0.90 Reduction in consumption = $5 billion Decrease in investment  = $4 billion  

Q: A man wishes to have P35,000 when he retires 15 years from now. If he can expect to receive 4% annua...

A: Formula for future value of annuity due is as follows, F = (1 + r) * A * [{(1 + r)n - 1} / r]

Q: If there is a surplus of loanable funds, then

A: When there is any excess supply of anything above the demand then it will cause surplus. Note:- We’l...

Q: Which one of the following is a characteristic of the service sector? O Intangible products O Little...

A: the main characteristic of the service sector is that it considers services as an intangible product...

Q: What are the different views of Advertising? Topic: Monopolistic Competition

A: Advertising is information about a company's product or operation distributed by the firm, usually t...

Q: If the income effect is smaller than the substitution effect following a change in productivity, var...

A: Income effect is the effect of change in income on the purchasing decisions or consumption. If the i...

Q: The controversial campaign spending decision of Citizens United v. Federal Election Commission Selec...

A: The citizen's united versus federal election commission The supreme court of America prohibited the ...

Q: (3) You are an accountant for a manufacturer of radios. The demand function for the tablets is p= 40...

A: The relationship between the quantity demanded for a commodity (dependent variable) and the price of...

Q: In a small economy the disposable income, consumption, and saving in some country are $200 billion, ...

A: Marginal Propensity to Consume is the proportion of an increase in income that gets spent on consump...

Q: Suppose $55 is the equilibrium price in the bicycle market. The equilibrium quantity is 30 bicycles....

A: The consumer surplus is given as the area of the triangle above the equilibrium price and line and b...

Q: Consider the following scenario to understand the relationship between marginal and average values. ...

A: Game free throw percentage= Free throw made/Free throw attemptedAverage free throw percentage=(Total...

Q: Which of the following equations is correct for an economy that does not have a government or a fore...

A: An economy that does not have the government sector or a foreign sector satisfies the following at e...

Q: How does a growing trade deficit affect a country's GDP?  Explain your answer.

A: GDP refers to the final value of goods and services produced in an economy during a year. The GDP is...

Q: 18. Markets are gooc outcome? f so,

A: The market works through the market forces of demand and supply. The changes in the demand and suppl...

Q: Finding the Economic Life of the NewCNC Machine. Find TC and EUAC for each year.

A: ANSWER   The economic life of the the defender is often 1 year so a proper analysis may be between d...

Q: Which one of the following is a characteristic of the service sector? Intangible products O Little c...

A: The service sector produces services rather than producing products.  

Q: The z-score interval that bounds a middle area of 0.75 is _____. a ± 1.08 b ± 1.10 c ± 1.13 d ± 1.15

A: We have to find value of Z score such that 

Q: ume thhe GDP - $100.000; taxes $22.000; government purchases - $25.000; national saving $15,000. Ref...

A: Solution:- 1)  Consumption = ( Y-T) - private saving Here, Y=GDP, T= taxes Private saving = 25000+15...

Q: Exercises: • What are the benefits of registering a business? Comparison be limited company and limi...

A: India has the world's 2nd highest number of unregistered enterprises, with an estimate 127 unregiste...

Q: Which of the following could explain an increase in the equilibrium interest rate and a decrease in ...

A: Market for loanable funds shows demand and supply for loanable funds and equilibrium in the market i...

Q: 1. An industrial plant is considering the purchase of a centrifugal pump. Three offers were received...

A: The economic life of an asset is the amount of time it is useful to its owner.Salvage value is an as...

Q: A firm has the following revenue and cost functions. TR = 120 Q – Q2 TC =  Q2 +30 Q + 10 Determin...

A:

Q: Question 13 Two of the economy's most important financial intermediaries are suppliers of funds and ...

A: Financial Intermediaries:- Financial intermediaries play a role of middlemen for fund transfers, mos...

Q: chine is P 70,000. If the cost of making a forging is P 56 and its selling price is P 125 per forged...

A: Given annual maintenance cost = 70000 Variable cost = 56 Selling price = 125 per unit  

Q: Economics Explain and illustrate (with a graph), the Lewis "Two Sector Model". and How does this rel...

A: In development economics, the dual-sector model is a model. After its creator, W. Arthur Lewis, it i...

Q: If the governments efforts to reduce demand are effective, what happens to price and usage of mariju...

A: If the demand is reduced by imposing heavy taxes and excise duty, then it would lead to the high pri...

Q: There are two main models explained in the chapter, i.e. the big-push model and the O-ring model. Ho...

A: The Big-push model is a notion in development or welfare economics that highlights that a firm's dec...

Q: Consider the market for gas in the US. Suppose that due to Covid-19 that there is a fall in the pric...

A: When the price of oil falls due to Covid-19 which is used to produce gas, this leads to an increase ...

Q: Exhibit 30-3 Costs of Eliminating: Firm A Firm B Firm C lat ton of pollution $ 30 $ 50 $ 600 2nd ton...

A: Given are the cost of eliminating 4 tons of pollution for each firm A, B and C. There are two cases ...

Q: How can we reconcile these four classical models? In other words, what are some positives that can b...

A: Linear stages theory - This a historical growth model given by Walter Whitman Rostow in 1960. His th...

Q: 2. Consider the supply of pizza. If the price of cheese (an input) goes up and the price of hot sub ...

A: If there is a commodity that has substitutes available in the market then the increase in price will...

Q: When a rational individual elects to save a portion of his/her disposable income then what does that...

A: Disposable income is the amount of money available to an individual or household to spend or save af...

Q: Explain price discrimination. What are the conditions to make price discrimination  effective? Provi...

A: Price discrimination is a marketing approach in which a vendor charges varying price for the product...

Q: Engr. Budoy bought a bond having a face value of P 10,000 for P 9,700. The bond rate was 14% nominal...

A: *Answer:   

Q: Government spending increases from G1 to G2. Which of the following diagrams best represent the chan...

A: Picture A is the correct one. If  Y=C+G. C=Y-G with h-l = 24 hrs or labor =0, Y=0, C=-G

Q: mortgage where the unpaid balance is refinanced every few years at the current rate, whatever that r...

A: A mortgage is an understanding among you and a moneylender that gives the bank the option to take yo...

Q: A sample of 60 observations will be taken from an infinite population. The population proportion equ...

A: Given that, Sample observations (n ) = 60 population proportion  (p) = 0.85  

Q: Price ($) 40 25 15 5 3\ Quantity 15 25 50 75 100 200 Refer to the graph above. Suppose that the gove...

A: The answer is - Option a. No surplus or shortage, only equilibrium.

Q: Ruby loves dividing her free time between going to the movies and reading. She has 20 hours per week...

A: Given: Amount per week=60 Cost of going of movies=6 Cost of books=15  

Q: 1. International expansion is one pathway for growth for established firms, particularly when their ...

A: When a business decides to enter the international market, it has a number of options. Cost, risk, a...

Q: The market for dog beds currently has a price ceiling at $30. Demand for dog beds is P = 79-0.012Q a...

A: Here we calculate the consumer surplus will they gain by using the given demand and supply , so calc...

Q: 5. It is a common practice in lending companies that the interest is deducted at the time money is b...

A: Given: The amount of loan is = P50,000 The principal amount he receives after 16% deduction is = P42...

Q: What is Business Cycle?  Definition of leading, coincident, lagging indicator?

A: An economic cycle that reflects the rise and fàll of national GDP over the long term. The business c...

Q: 4. If the nominal Gross Domestic Product of an economy is equal to 19,567 and the real Gross Domesti...

A: Given: The nominal GDP for an economy is = 19,567 The real for an economy is = 15,355 To Find: The G...

Q: The graph below shows the budget constraint between income and leisure for an individual. The indivi...

A: A budget constraint is defined as the combination of all the goods and services that a consumer can ...