Answered: Increase in transfer payments will lead…

Increase in transfer payments will lead to a. Leftward shift in IS curve b. Rightward shift in IS curve c. Slope of IS curve will increase d. Slope of IS curve will decrease

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter10: Cost Functions

Section: Chapter Questions

Problem 10.11P

See similar textbooks

Related questions

Q: If sales are $60,000 and change in stock is 30% of sales Calculate Value of output

A: The information being given is:- Sales = $60,000 Also change in stock is 30% of sales so we have:-…

Q: Who is william smith

A: William Smith was born on March 23, 1769 and lived for 70 years. He was born in Churchill,…

Q: If a U.S. citizen buys a coat made in China, the a. U.S. consumption increases and U.S. net…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: International firms will invest in less developed countries at the beginning of their production…

A: According to the product life cycle, when the product is about to launch it is generally firstly…

Q: If household savings is negative then national savings a.must increase to preserve living standards.…

A: National saving: It refers to the saving that is not used or that is used being saved. The more the…

Q: Applied to the loanable funds market, the Law of Supply dictates that.. A)Lenders will seek to…

A: law of supply - It other things are remain unchanged then quantity and the price of a product is…

Q: when deciding upon the optimal amount of capital, a firm will decide to purchase capital if all of…

A: An optimal amount of capital is such an amount of investment that would result in maximization of…

Q: Question 14 Leontief was trying to test the Heckscher-Ohlin Model. He assumed that the US was…

A: Leontief paradox: In economics, Leontief's paradox states that the capital/labor ratio in exports is…

Q: The production of goods and services valued at constant prices

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…

Q: transfer payment is a sum of money... (choose one option that best fits this) A. spent by government…

A: Expenditure approach: GDP=consumption+investment+government expenditure+net exports

Q: What is the difference between production cards and move cards?

A: Instruction/visual card is a communication tool used in the field of manufacturing. These are…

Q: The decrease in savings causes the decrease in supply of loanable funds. Select one: True False

A: The main source of loanable assets is saving. Families set aside cash, these investment funds are…

Q: Is this possible or not that the rate of interest fall to zero? 300 words

A: The interest rate refers to the payment rate that is charged by a lender on a borrower for using the…

Q: Compare the assembly line in China to that in San Francisco along the following dimensions : ( 1 )…

A: Answer 1) comparing the volume or rate of production, China's assembly line has a better…

Q: The functional relationship between savings and income is known as _________ function

A: # Saving is one of the component of income which remains unconsumed. Savings can be zero or even…

Q: Which of the following is an example of economic investment? ABC Corporation buys an a run-down…

A: Economic investment are, by definition, increases to the capital load of an organization. These can…

Q: Land is a factor specific to producing olives. When Padua starts to trade, it exports olives. Using…

A: In a simple adjustment of a "specific model of features, there are two categories (goods), one item…

Q: If aggretate exppenditure is greater than total income: investment will decrease because such…

A: In an economy, aggregate expenditure refers to the total amount of money spend by the people of a…

Q: Capital is a particular kind of money that incorporates ___________. a proxemics b symbols c…

A: Capital can be thought of as an accumulation of working hours. It enables a firm to hire labor, and…

Q: True or false: transfer payments alter household income, but they do not reflect the economies…

A: Income is the amount received regularly for your work or the amount received as interest on savings.…

Q: The decision of United States to banned Huawei from investing in United States may discourage other…

A: An FDI { Foreign Direct Investment} is the type of investment in which a firm or an individual…

Q: There are 2 commodities X and Y. Total amount of labour required by X and Y = 400 units. Labour is…

A: Economic essentials refer to the attending state of the economy in a nation or region. These…

Q: Of means-tested programs and IRA’s, which lower the rate of return on saving? a. Both…

A: Option (d) is correct.

Q: Explain with graphics) A consumer, who is initially a lender, remains a lender even after a decline…

A: Even if interest rates fall, a customer who was formerly a lender remains a lender. This customer…

Q: Purchasing power measures the value of a currency in terms of ____. a. the quality of products…

A: Purchasing Power is the currency's value expressed in the amount of goods and services that a unit…

Q: Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees…

A: It will increase.

Q: A society will put more investment on consumer goods than capital goods if it values more of present…

A: Consumerism is the possibility that expanding the utilization of goods and administrations bought in…

Q: real value will increase only when prices increase. Select one: True False If the real value for…

A: The nominal values do not reflect true change in the quantities or real GDP. it is the real GDP…

Q: Traders often buy foreign currency in the hope of making money when the currency’s value changes.…

A: " Since you have asked multiple-subparts, we will solve the first three subparts for you. To get…

Q: Movement of Labor and Capital Between Countries In the short‑run specific‑factors model, examine the…

A: a. The decrease in labour supply will decrease the supply curve for labour from S to S1. Therefore,…

Q: : Decreasing the value of coins by reducing the amount of precious metals they contain is called…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: ve example of FDI that invest in internalise production within the firm that vertically integrate or…

A: A foreign direct investment refers to the purchase of an interest in a company by a company or an…

Q: We must draw on an existing body of knowledge in order to develop new theoretical approaches to…

A: Media economy is a concept in which the economist studies theories and concept of the media…

Q: What is the relationship between the rising cost of living and low-income communities’ savings in…

A: The cost of living is referred as to the level of price or cost of purchasing goods and services.…

Q: In the Specific Factors Model, assume that in Country A, "wheat" is produced by using land and…

A: If the price of any good increases but the cost of production remains the same then the producer…

Q: What is foreign direct investment and why is it important in terms of countries? Please explain the…

A: The purchase of a share in a company by a business or investor from outside of the country's borders…

Q: Foreign entities O a) typically require a smaller inflation premium than domestic borrowers. O b)…

A: The funds that are available for borrowing money in the economy are known as loanable funds. These…

Q: uppose a Japanese manufacturer wants to take advantage of the cheaper labor available in China.…

A: Foreign Direct Investment occurs when a firm invests directly in a market of a foreign country to…

Q: What are "in-kind" transfers? What would be an example? What are some criticisms made against…

A: In every country, society is divided into two groups poor and rich . Larger the gap between them…

Q: We can think of an increase in government transfer payments as a- a decrease in G b- an increase in…

A: Transfer payments are those payments which are made without providing any services or goods in…

Q: f nominal GDP is $1,200 billion and, on average, each dollar is spent three times in the economy…

A: Gross domestic product (GDP) is the standard proportion of the worth added made through the creation…

Q: Definition of circular flow

A: Circular flow diagram shows the flow of goods and services in an economy. I.e.inputs and outputs.

Q: The capital earns an interest return on investment in the structure of production because A.…

Question

Increase in transfer payments will lead to

Leftward shift in IS curve

Rightward shift in IS curve

Slope of IS curve will increase

Slope of IS curve will decrease

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The production function describesA) the relationship between quantity of inputs and quantity of output.B) how inputs are most profitably used in production.C) the most cost effective method of combining various inputs in the production process.D) the relationship between a firm's revenue and level of production.
Please find the effect of Y and r if there is a decrease in the tax rate. Use the following equations and evaluate the total derivative.
S-Curve. Clearly draw and label the curve with a working example.
Define the strict gradient series?
Refer to Exhibit 4-5. A change from Point A to Point C represents a(n):
Consider the Cobb-Douglas production functionf(x, y) = 40x^(1/4)y^(3/4)where x is the number of units of labor, y is the number of units of capital, and f(x, y) is the number of units produced. Use differentials to estimate the change in production if the number of units of labor is increased from 64 to 65 and the number of units of capital is increased from 81 to 80. If at the current levels the number of units of capital decreases by 4 units, approximately how many units of labor should be added to keep the production level unchanged?
Uniform gradient pls
Constrained Optimization using Lagrange Multiplier: Cost MinimizationA clothing company produces two goods namely pants (P) and sweaters (S) whose combined cost function is C = 6P2 + 10S2 − PS + 30.In a day, the clothing company is limited by a production quota of 34 units of output only. Inequation form: P + S = 341. State the cost minimization problem of the clothing company.
The correct answer turned out to be AA and DD will Shift. Now it's asking me to draw new AA and DD lines.
Law of Diminishing Return and Shape of the curve
Find the rate of change of the function f(x) =x + 2 /1 − 8x with respect to x when x = 1. (ii) The number of units Q of a particular commodity that will be produced with K thousand dollars of capital expenditure is modeled by Q(K)=500 K 2/3
the first stage of the law of variable proportions a. Total product falls b. Total product rises at an increasing rate .C. Total product is constant d. Total product rises at a diminishing rate