Question 7 You are currently at the bundle (x, y) = (4, 2) with a utility function U = ln(x) + In(y). I offer you one additional unit of x for 2 units of y. Do you make the trade with me? Explain.

Q: Define the production function, f(x), and the average product associated with it. How do you…

A: Production is the process of transformation of inputs into output by using factors of production .…

Q: Which of the following events would be expected to result in an upward shift of the standard…

A: Philips curve shows inverse relationship between inflation rate and unemployment rate.

Q: Frances sells pencils in the perfectly competitive pencil market. Her output per day and costs are…

A: In perfect competition there are large number of firms selling identical goods.

Q: What is the fundamental problem of econometrics? 2. Explain in words and with the formula we

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first question for you. If…

Q: Mean Raw Processing Time Number of Parallel Machines Installed Capacity (jobs per Bottleneck? (Yes…

A: Answeing the first question. Total hours in a day = 24 Processing time = 5 Total utilisation = 24/5…

Q: 4. The demand for good X has been estimated by Qx= 12 - 3P, + 4Py. Suppose that good X sells at $2…

A:

Q: Consider two economies, A and B. Economy A has a marginal propensity to consume of 0.9, a net tax…

A: In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate…

Q: Suppose a firm produces according to the production function Q=3K/3L/3 and faces a wage rate of $5…

A: The Production function Q = 3K1/3L1/3 Wage rate(w) = $5 Rental rate of capital(r) = $2 Output price…

Q: ii) Consider two firms producing differentiated products and competing on price choice. Their demand…

A: First, we find the inverse demand functions for both firms. 4p1 - p2 = 100 - q1 -p1 + 4p2 = 100 - q2…

Q: Suppose there is a country importing tires. The government of that country imposes a tariff on…

A: A tariff basically refers to a charge levied by one nation on products and services imported from…

Q: bought pichi for $36 less 40%, 15%. Overhead is 25% of the regular selling price. a) If the store's…

A: The cost of a coffee maker is $36 less 40% and 15%.   Now the actual cost is $18.36, which is 85…

Q: 1) When disposable income increases from $14,500 to $18,700, consumption increases from $12,300 to…

A: "Marginal propensity to consume represents the proportion of addition to the disposable income spent…

Q: Please make a cash flow diagram for this problem. An example of the

A: Answers given below,

Q: In 2018, several European couptries were faced with the problem of increasing intation At the same…

A: We know that inflation is the rate of increase in prices over a time period. It is a general measure…

Q: Demsetz argues that many market failure arguments are wrong because they ignore that real life is…

A: Economists look at a variety of issues known as "market failure" - conditions that, at the very…

Q: for Chepter 8 rwrket for Persanal Computers qastrms S-16 is Which of the Pra/Tanther puoth P. World…

A: The quota is the non- tariff barrier. It restricts output or import to certain level. It reduces…

Q: Suppose expected future short rates and the liquidity premiums are given by the following:…

A: We have given E(r1)=1%E(r2)=2%E(r3)=3%and liquidity premium=(2t+1)%

Q: When you purchase a T-shirt for $25, money is serving which function?     Medium of exchange…

A: Medium of exchange means when you buy something and pay with the money you have. Standard of…

Q: Suppose that in a linear regression model hourly wages are explained as a function of gender, where…

A:

Q: • You offer a lottery ticket {$64, .125}, i.e., 12.5% to win $64 or nothing, to three persons with…

A: Introduction Here 3 persons willingness to pay has given. If they win lottery ticket then they will…

Q: Assume we are currently in an equilibrium where actual output is equal to potential output. If…

A: Equilibrium in the goods and services market is reached at the intersection of AD and AS curves.

Q: The percentage of people who work part-time for non-economic reasons is relatively steady over time.…

A: As an economy grows and contracts, it goes through a series of phases known as a "business cycle,"…

Q: If Total utility function Tu= x3-30 X2 Find number of consumption where is Average Utility moxim

A: Average utility refers to the utility that is obtained by the consumer per unit of commodity…

Q: s there any relationship between the monthly percentage change in rail carload traffic (RCLDPCH) and…

A: Answer -

Q: B. Determine the inflation rate of Country ABC using its CPI from 2020 and 2021. Price Price Price…

A: We are Assuming 2020 as the base year. The formula used to calculate the cost of basket:- Cost of…

Q: Consider the aggregate supply-aggregate demand (AD-AS) model that we saw in class. Assume that…

A: Answer -

Q: A farmer sells $150,000 of apples to individuals who take them home to eat and $75,000 of apples to…

A: A farmer is selling the apples to two individuals one is final consumer and one is the producer.

Q: Which of the following is not considered a characteristic of money?   Question 3 options:   It is a…

A: Money is used as a medium of exchange, store of value, unit of account and standard of deferred…

Q: If apples have an own price elasticity of -1.2, we know the demand is elastic. Can you explain why?

A: In the question, elasticity of demand for apples is -1.2. In price elasticity, we ignore the…

Q: • Describe various opportunity costs of attending college. Given these opportunity costs, why do…

A: As a matter of first importance we want to comprehend what opportunity cost is:- OPPORTUNITY COST is…

Q: 5. A profit-maximizing firm is producing where MR = MC %3D and has an average total cost of $4, but…

A: Profit maximization is the process by which firms ensure that they have the best output and pricing…

Q: employer sends cach employee a Form W-2 at the end of cach year showing what taxes were withheld.…

A: Taxes are compulsory commitments required on people or partnerships by an administration substance.

Q: Define the production function, f(x), and the average product associated with it. How do you…

A: Production is the process of input transformation into output by uses of factors of production .…

Q: B. Determine the inflation rate of Country ABC using its CPI from 2020 and 2021. Price Price 2020…

A: Here we are Assuming the base Year is 2020 Formula Used  to Calculate cost of Basket basket= Cost of…

Q: Microeconomics 2 - Factor Market - Pareto Optimum Consider an economy in which only 2 factors are…

A: On the supply side of the economy, we look at two different markets: the factor market, and the…

Q: Cieck A ion 14 of 23 Sort the pros and the cons of Employment Insurance (EI). Pro Con Answer Bank…

A: The correct answer is given in the second step.

Q: The Solow Growth Model assumes a closed economy. This implies   a.savings equals investment   b.…

A: PLEASE FIND THE ANSWER BELOW.

Q: 1. Consider the following demand and supply functions: Q- 1000 - 2P (Demand) Q --500 + 3P (Private…

A: Disclaimer: Since it is a multiple part question, I am providing the answer to the first three…

Q: (15 marks) Public utilities, like local electricity providers, are likely natural monopolies. They…

A: The answer is as follows:-

Q: 16. The demand for good X is estimated to be Q, = 10, 000 – 4Px + 5Py+ 2M + Ax where Px is the price…

A: Cross price elasticity of demand measures the responsiveness of quantity demanded of good 1 with…

Q: Give an example of one tool used to conduct state guidance in a state guided capitalism. What are…

A: State capitalism is an economic system in which the government engages in commercial (for-profit)…

Q: Anthony and Brandon have a utility possibility frontier that is given by the following equation: U,…

A: Production means converting raw materials into finished goods. It means two or more inputs are used…

Q: Assume we are currently in an equilibrium where actual output is equal to potential output. If…

A: Outpap refers to difference in actual output and potential output

Q: Suppose that a perfectly competitive firm's marginal revenue equals $12 when it sells 10 units of…

A: The correct option is A. If the marginal cost of producing the 10th unit is $14, to maximize its…

Q: B. Determine the inflation rate of Country ABC using its CPI from 2020 and 2021. Price Price Price…

A: We are assuming the base Year as 2020 The formula for calculation of the cost of bucket:- cost of…

Q: A firm finds the following relationship between workers’ productivity and the amount that workers…

A:

Q: If $2,000 is withdrawn from the bank by a customer, the bank's     Assets and liabilities decrease…

A: The correct option is assets and liabilities decrease. If $2,000 is withdrawn from the bank by a…

Q: 2. For a firm in a perfectly competitive market, the total revenue curve is unusually easy to draw.…

A: Perfectly competitive market refers to those Markets where large numbers of sellers and buyers…

Q: Which of the following choices is not part of capitalism? O free enterprise O private ownership of…

A: Capitalism is an economic and political system in which the ownership of the private enterprise is…

Q: The new generator, which has an initial cost of S80,000, has annual operating costs of S15,000 ove…

A: Initial Cost = 80,000 Operating Cost = 15,000 Life = 15 Year Salvage Value = 10,000 interest rate =…