PRONC I2 IT PRODUCT B a4 True False Q6-Q2 is the substitution effect. Q4-Q2 is equal to the income O True O False effect. True False Q6-Q4 is the total effect.
Q: 7
A: The IS curve is the curve that shows the inverse relationship between the interest rate and output.…
Q: SA hits record unemployment rate South Africa's unemployment rate reached a record 34.9% for the…
A: "Unemployment refers to a situation where people who are employable and actively seeking for a job…
Q: Question 3 a. In a closed economy, GDP is $195,000, consumption is $120,000, private saving amounts…
A:
Q: Why might Maslow's hierarchy not apply to a underdeveloped country? * Your answer
A: When talking about Maslow's hierarchy, it can be seen that Maslow beleives in following a specfiic…
Q: An increase in supply and demand will lead to an increase in the equilibrium price and an…
A: An increase in demand and supply shifts the demand and supply curve towards right.
Q: he relationship between inflation and unemployment
A: Inflation refers to the fall in purchasing power of a given currency over time. A mathematical…
Q: a) Explain the lender of last resort (LOLR) function of central banks. Provide some examples of the…
A: One of the most significant and essential functions of a central bank is to manage the country or…
Q: The unemployment rate dropped to 6.6 per cent in January 2022, which is lower than the pre-pandemic…
A: The expanded definition of unemployment refers to a situation when people are not looking for any…
Q: Consider a competitive market with a perfectly elastic supply curve and a perfectly inelastic demand…
A:
Q: Reserve Checkable Actual Excess Requirement (%)| Deposits Reserves Reserves (1) W $100,000 $10,000…
A: The fund amount held by the bank in reserves for ensuring that it is able to meet liabilities when…
Q: When money is used as medium of exchange A. the need for a barter system diminishes B. the cost of…
A: In an economy, when money is used as the medium of exchange, it is the situation when purchasing a…
Q: Suppose the value of a bank's variable-rate assets is, liabilities is $100 million. Since this bank…
A: In the banking sector, when there is mismatch between the assets and liabilities of a bank, it is…
Q: A copper wire has a material cost that varies proportionally with the cross-sectional area (A)…
A: When discussing optimization problems, the term "optimal value" refers to the minimal (or highest)…
Q: For a small open economy with a fixed exchange rate: а. monetary policy is effective and fiscal…
A: In the international market, there are two types of exchange rate system that are fixed exchange…
Q: Consider a situation with two goods. Which of the following statements are true, which are false? If…
A: In a market, goods are classified as normal good, inferior good, and giffen goods.
Q: Consider two ice cream sellers competing at a beach that is 1000 metres long. Ice cream prices are…
A: In game theory, Harold Hotelling discovered the location game, which is frequently referred to as…
Q: Consider a competitive market with aggregate demand function QD = 100 2p and aggregate supply…
A: Consumer surplus is the surplus which is earned by the consumers due to the difference between the…
Q: Smaller firms tend to rely more on financial intermediaries to obtain funds externally due to high…
A: Financial intermediaries are the people that fulfil the fund requirement of the businesses.
Q: Assume Bolivia and Chile use the same amount of resources to produce tin and copper. The following…
A: A country is said to have a comparative advantage if it can produce the good at a lower opportunity…
Q: The price elasticity of demand for good x shows how: A A change in price of good x affects the…
A: Elasticity is a concept that is used to measure the changes of one in response to other. It can be…
Q: Ana decides every day how many hours to work and how much beef to consume. She spends all income…
A: given that in the question, U(t,y)=2t^1/2 + y W=1 t=24-h where, Y is the consumption of beef and,…
Q: Name at least 2 trade barriers in existence today, and discuss their effect on trade.
A: Exchange boundaries or trade barriers are limitations forced by the public authority of a nation on…
Q: d) Undesired investment occurs.
A: Demand pull inflation is due to when aggregate demand exceeded aggregate supply. AD -AS > 0,…
Q: Explain in technical details why the Lagrange multiplier is currently used in analyzing the theory…
A: In economics, the Lagrange function is used to address optimization issues.
Q: 1. Your rich uncle has offered you two living trust payouts for the rest of your life. The positive…
A: The minimum acceptable rate of return also known as (MARR) is the rate of return a management or…
Q: Mr. Edwards borrowed P 200,000 and agrees to pay P X annually for 5 years at the rate of 6%…
A: Amount Borrowed = 200000 Annual Payment = x n = 5 r = 6%
Q: Explain what is meant by serial correlation and discuss its underlying causes.
A: Serial correlation is a statistical term that describes the relationship between observations of the…
Q: QUESTION 23 In the foreign exchange market, if the U.S. interest rate rises relative to interest…
A: In the foreign exchange market, the currency of one country is exchanged for another country's…
Q: Imagine a firm that employs two types of workers – some with computer skills and others with no…
A: When more labour is employed, the marginal product of labour is the additional increase in total…
Q: Suppose that output q is a function of a single input, labour (L). Describe the returns to scale…
A: amazon work space client google download and install zoom meeting install okta in phone The…
Q: the shift of money curve depends on all of the following except A. income B.the price level C.…
A: Money curve refers to the money demand curve and money supply curve, at the marketplace, which are…
Q: A CDO divides securities into different risk classes, called tranches. O True O False
A: Introduction : Tranches are bits of a pooled assortment of protections, typically obligation…
Q: Refer to the following table. Suppose the CPI basket consists of 10 pies of pizza and 20 bottles of…
A: Inflation rate is the rate at which prices of goods and services increase over a period. It is…
Q: AMFI -X is a type of mutual stock fund which does not invest in companies engaged in gambling,…
A: Social Darwinism Social Darwinism refers to the social practices which apply to Charles Darwin's…
Q: Use the Mundel Fleming model to compare and contrast the effects of an expansionary fiscal policy in…
A:
Q: All of the following might explain a firm offering quantity discounts except: a. lower costs of…
A: At the marketplace, firm uses various strategies to attract consumers and grow their business.
Q: 4. Suppose that an amusement park is a local monopoly. It has daily fixed costs of $30,000 and…
A: Utility function :U (x , m ) = 10x - x2/4 + m Income of visitors = 200 Price of ride (x) = p Price…
Q: Economics 2. give two curvilinear equations of three sector economy: IS, where Y = 2000 – 5000r ISz…
A: The IS curve illustrates interest rates and production levels that equal budgeted spending. The IS…
Q: Inflation distorts relative prices. what does this mean and why does it impose a cost on society?
A: Inflation means an increase in prices during a period of time.
Q: **Now suppose the government imposes a $20 per unit tax on the monopolist. Calculate the…
A: Monopoly is able to generate the highest possible profits because it produces at the point where…
Q: Consider the endogenous growth model AK, in which the production function is given by Y = AK.…
A: . It's computed by average price increases across all items in a defined basket of commodities. The…
Q: A man deposits P 1000 at the end of each month for 3 years at a nominal rate of 12% compounded…
A: Future value = Payment per period [ {(1+r/12)n*12 - 1} / r/12 ] Where r = Interest rate, and n =…
Q: During the great depression the economy was suffering from a recessionary gap, with the unemployment…
A: Assume the economy degrades and employment falls below the Federal Reserve's maximum employment…
Q: b. State and explain the First and Second Welfare Theorem and discuss their economic implication and…
A: First Welfare Theorem serves as a theoretical justification for the efficacy of markets. The first…
Q: A manufacturing company plans to expand their production and logistics facility into one of the…
A: The most optimistic approach is taken by the Maximax criteria. In this situation, the most hopeful…
Q: Right now, the USA is facing inflation. Which of the following would we LEAST likely see as a…
A: In the United States, if there is a high inflation, it explains the expansionary situation in the…
Q: Suppose the current money supply is $8,000. For each of the following situations, determine the…
A: Individuals and banks' liquid assets are referred to as the money supply. Coin, currency, and demand…
Q: 1. Assume a neo-classical aggregate supply model with both long run and short run aggregate supply…
A: Aggregate demand is characterized as the all out interest of every single last product and…
Q: Explain what is meant by heteroskedasticity and discuss why this problem needs to be addressed if…
A: (Q) Explain what is meant by heteroskedasticity and discuss why this problem needs to be addressed…
Q: Compute single-factor productivity
A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…
Step by step
Solved in 2 steps with 1 images
- A consumer consumes two goods and her utility is form by Cobb-Douglas utility function. Her MRS is 0.9 * (q2/q1) Using these information find Marginal utility levels of first amd second goodsKhan lives in a world with two consumption goods x and y. Her utility function is U (x, y) = √x² + y². a. If px = $3,py = $4, and her income, I, is equal to $50, what will be the quantities of x and y that Maya should buy to maximize her utility? Make sure that you write out the Lagrangian and the first-order conditions. (Hint: It may be easier to maximize U² than U). Have you found a true maximum? Explain your answer.Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8 If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing Multiple Choice 3 units of J and 7 units of K. 5 units of J and 5 units of K. 4 units of J and 5 units of K. 6 units of J and 3 units of K.
- Is optimal consumption basket the same as associated level of utility?Graph and explain indifference curves for the following situations:(i) An individual has constant marginal utility toconsumption in both periods.(ii) An individual does not derive utility from this period’sconsumption, but does from the next period’sconsumption.(iii) An individual’s utility decreases with consumption inboth periods.Joanna is playing blackjack for real money. She has reference-dependent preferences overmoney: if her earnings are m and her reference point is r, then her utility is v(m − r), wherethe value function v satisfies v(x) = √x for x ≥ 0, and v(x) = −2√−x for x ≤ 0a) Graph Joanna’s utility function as a function of m − rb) Does Joanna’s utility function satisfy loss aversion? Does it satisfy diminishingsensitivity?Suppose that Joanna has linear probability weights (that is, she does NOT have prospecttheory’s non-linear probability weighting function). Hence, if she has a fifty-fifty chance ofgetting amounts m and m′, and her reference point is r, her expected utility is1/2v(m − r) + 1/2v(m′− r) (2)For parts (c), (d), and (e), assume that Joanna’s reference point is $0 (that is, no winsor losses) and answer the following questions for each part: (i) What is the g for whichJoanna would be indifferent between not gambling and taking fifty-fifty win $g or lose$4 gamble? (ii) Does this reflect…
- Households have utility u(C,D,I) over consumption C education D and investment I. The house-hold has income Y which it sp ends on these three go o ds at cost 1. Therefore the household's maxi-mization problem is:maxC,D,I u(C,D,I)s.t. Y = C + D + I A. Suppose that the household's utility function is u(C,D,I) = C1−φ−θDθIφ, with 0 <φ + θ ≤1, φ > 0, and θ > 0. Using this functional form, combine the first order conditionsfor C,D,I into two equations, by eliminating the Lagrange multiplier. B:You now have three equations (the budget constraint and your answer from b) andthree unknowns (C, D, and I). Use these equations to show that aggregate educationand investment are always prop ortional to aggregate income Y .There two goods, candy and soda, available in arbitrary non-negative quantities (so the consumption set is R2+). A consumer has preferences over consumption bundles that are represented by the following utility function:u(x, y) = −|4 − x| − |4 − y|where x is the quantity of candy (in grams), y is the quantity of soda (inliters), and |.| denotes the absolute value: for any real number r ∈ R, |r| = r if r ≥ 0 −r if r < 0. The consumer has wealth of w > 0 Dirhams. The price of candy is p > 0 Dirhams/gram, and the price of soda is q > 0 Dirhams/liter. (a) Find the demand for candy and soda as a function of wealth w > 0for the following specific prices, explaining how you arrived at youranswers:(i) when p = 1 and q = 2,(ii) when p = 2 and q = 1,(iii) when p = q = 1. For each part (i), (ii) and (iii), illustrate the demand for candy as afunction of wealth in an appropriate diagramThere two goods, candy and soda, available in arbitrary non-negative quantities (so the consumption set is R2+). A consumer has preferences over consumption bundles that are represented by the following utility function:u(x, y) = −|4 − x| − |4 − y|where x is the quantity of candy (in grams), y is the quantity of soda (inliters), and |.| denotes the absolute value: for any real number r ∈ R, |r| = r if r ≥ 0 −r if r < 0. The consumer has wealth of w > 0 Dirhams. The price of candy is p > 0 Dirhams/gram, and the price of soda is q > 0 Dirhams/liter. Now consider a different consumer who has preferences represented by thefollowing utility function.u(x, y) = −|2 − x| − |8 − y| if x ≤ y −|8 − x| − |2 − y| if x > y,where x is the quantity of candy (in grams) and y is the quantity of soda(in liters). (a) In an appropriate diagram, illustrate the consumer’s map of indifference curves.(b) Are the consumer’s preferences monotone? Are the preferences…
