Suppose Alice faces the following prices and income across two periods. Prices Income Period 10 1 200 Period 12 2 250 Suppose the interest rate is 5%. Using the equation editor, write down the intertemporal budget constraint for Alice.
Q: What can you say about Tax incidence in our country, who carries the burden more? Give examples and ...
A: Taxes are unintended fees placed on individuals or companies and levied by a government agency – reg...
Q: Suppose profits are less than zero. From this it follows that: Group of answer choices A.aggregate...
A: Profit formula: Profit = Total Revenue - Total Cost
Q: Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The...
A: Firms maximise profit at a point where marginal revenue is equal to marginal cost and price is deter...
Q: what mechanisms should be used to ensure the integrity of traders in the trading function
A: Trading Mechanism The logistics of trading assets are referred to as trading mechanisms.Intangible a...
Q: Which province has the highest union rate in Canada? Newfoundland and Labrador Nova Scotia Ontario Q...
A: When talking about union rate in Canada, there are different provinces that holds different share of...
Q: Halliford Corporation expects to have earnings this coming year of $3.325 per share. Halliford plans...
A: Answer-
Q: 2 Imperfect competition (2022) Two companies, Thomas Inc and Edison Inc, are the only producers of e...
A: Introduction Here are the two companies: Thomas Inc. and Edition Inc. Demand of electrical vehicles ...
Q: Identify and describe a distinction between the monetary policy tools of the Fed and those of the Eu...
A: Despite the Great Recession's initial perception as a US crisis, the Eurozone was involved from the ...
Q: Perfect Competition: What are the key features of a perfectly competitive market? Many buyers and...
A: Question 1 is only answered. Post the remaining question again.
Q: 7. ( equilibrium which allows them to relax price competition. ) In markets in which products can be...
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...
Q: Assuming a unitary elastic demand and supply, a tax on the sellers of coffee will cause the price bu...
A: Equilibrium is at a point to demand come into six the supply curve. When the tax is imposed on the g...
Q: hat if the Global Initiative for Mental Health is not achieved?
A: To become developed, the country needs to have a healthy population. A healthy population will engag...
Q: A central bank that increases the money supply in its economy has more effect on spending the more i...
A: It's typical to hear that the central bank "increased interest rates" or "lowered interest rates" wh...
Q: Marginal cost is equal to the change in average variable cost divided by the change in total output ...
A: Total cost is the sum of fixed cost and variable cost. Variable cost increases with increase in outp...
Q: The groups who spend aggregate income are: O Households, businesses, governments and foreign sector ...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Assume that the annual rate of inflation is expected to be 4 per cent per annum for the next five ye...
A: When a currency's value decreases over time, it is called inflation. Over some time, an economy's av...
Q: Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natura...
A: A perfectly competitive firm is a price taker as it accepts the market price as given.
Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice, O, $1 each. Her income is...
A: Budget line shows the different combinations of two goods that a consumer can purchase with the give...
Q: 2. There are three student canteens serving different types of foods located at the campus. Table be...
A:
Q: 6. A transfer payment is a govermment payment A not made in exchange for a good or service. B. to co...
A: Note: We will answer the first question since the exact one wasn't specified. Please submit a new qu...
Q: 4. In an attempt to calculate the optimal strategy for Row [x (1 – x)]. Calculate the matrix RP. Wha...
A: Payoffs of the game are in following manner : Player 2 Probability -3,3 1, -1 (x) ...
Q: Explain how any technological advancement (increase in our A from production function) could affect ...
A: Technological advancement reduces the cost of production and increases the labour productivity whic...
Q: Describe the main assumptions of perfect competition and monopoly. please provide detailed answe...
A: Perfect competition can be described as a situation where there are large number of buyers and selle...
Q: Country X can produce 1,000 units of food and 2,000 units of clothes. Country Y can produce 1,000 un...
A: Country X can produce 1000 units of food and 2000 units of clothes. Country X's opportunity cost of...
Q: The demand for goods of an industry is given by the equation PQ = 100, where p stands for %3D price ...
A:
Q: With free trade, for a world price of $4 per wrench, Spain is importing _________wrenches. 5. If the...
A: A country becomes an importer if the world price is less than domestic equilibrium price as quantity...
Q: 1. If demand is equally elastic, and price increases from 5 to 7, what is the total change? If price...
A: A change in price would increase the total revenue or decrease the total revenue depends on the pric...
Q: B). The firm produce two products A and B. Demand are independent and marginal costs are zero. The p...
A: An effective marketing technique known as bundling makes it easier for customers to buy many items a...
Q: ej Maximize f=g00sc t1200 Y-33CY -1-5x²-3Y? The totet cost functon C=29=+ 2000 -409-0493, find the n...
A: f) C=2q2+2000-40q-0.1q3AC=2q2+2000-40q-0.1q3qAC=2q+2000q-40-0.1q2∂(AC)∂q=2+2000(-q-2)-0.2q ...
Q: Define the meaning of ‘Economics’ and ‘Development’ within the context of Economic Development of na...
A: Economics is all about making wise decisions in the face of shortage. Economic growth is the most ba...
Q: Scenario 2: An investment tax credit effectively lowers the tax bill of any firm that purchases new ...
A: The repeal of the investment tax credit will reduce corporate investment, causing demand for loanabl...
Q: $/4 MC 6.70 6.00 ATC 4.90 4.00 AVC d = MR 2.80 2.60
A: A price taker firm produces at the intersection point of demand and MC curve in the short-run in ord...
Q: 3. Briefly explain how a hike in fuel prices would affect your business costs, sales,competitiveness...
A: Cost refers to the total expense that is incurred in the production of a product in any firm. Cost i...
Q: A telephone switchboard 100 pair cable can be made up with either enameled wire or tinned wire. Ther...
A: Number of soldered connection= 400 The cost of soldering a connection on the enameled wire= P16.50 T...
Q: advertises, Expresso makes a higher profit if it chooses doesn't advertise, Expresso makes a higher ...
A: All answers given below,
Q: Explain how an increase in oil prices will accelerate transition to a backstop technology.
A: A backstop technology is a new technology that produces a near counterpart for an exhaustible resour...
Q: Which of the following government policy will not have long term effects on th economy. O the Canada...
A: The one government policy that will not have any long term effects on the economy is that the Canada...
Q: 40 The following cost data is for a firm which is selling in a perfectly competitive market It the m...
A: In perfectly competitive market prices constant so it is equal to marginal revenue. Profit is maximi...
Q: Consider the following game Gn, known as the Traveler's Dilemma(Basu, 1994). Two business executives...
A: Since the question you have posted consists of multiple parts, we will answer the first two parts fo...
Q: In the hypothetical economy, the AD curve and SAS curve are given by the following equations: AD: Y=...
A: Given Functions Aggregate demand function Y=560-20P+3G Aggregate supply function Y=8+5P-3P(oil)
Q: Accordingtothetextbook,whichofthefollowingstatementsis(are)correct? (x) An advantage of a consumpt...
A: A consumption tax is a taxing system in which people are charged on how much people consume rather t...
Q: 12. A ceramics manufacturer sold cups last year for P7.50 each. Variable costs of manufacturing were...
A: The dollar amount of revenue at which a company earns a profit of zero is referred to as break even ...
Q: A monopoly is designing two take-it-or-leave-it contracts of the form (q., r,) for two consumer type...
A: Utility function A : Ua = y - x2/3 + 41 x Price of x = rA Price of y = 1 (Income spent on other...
Q: Assume the definition of deductible elasticity that gives non-negative figures for normal demand. A ...
A: Elasticity Elasticity is a term that refers to describe how a percentage change in one economic vari...
Q: Suppose the price of McDonald's meals rise. All else equal, the GDP deflator will fall, and the CPI ...
A: GDP Deflator is the ratio of nominal GDP and real GDP.
Q: Briefly distinguish the specific tax and Ad Valorem tax?
A: Taxes are primary source of income for the government.
Q: According to the textbook, which of the following statements is (are) correct? (x) As a nation gets ...
A: The answer is - (x) only
Q: 20. In a closed economy without investment and government spending, C = 1000 +.5YD, and taxes T=50, ...
A: Given : In a closed economy with no investment and government spending- Consumption = 1000+0.5YD Ta...
Q: GRAPH SETTINGS Reset Country-X Initial Value ($50 – $10,000) 1,000.00 Value (thousands of dollars) [...
A: The correct answer is given in the second step.
Q: The economy is currently at the potential level of GDP when the Bank of Canada announces that they w...
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts f...
Step by step
Solved in 3 steps
- Edna is living in a retirement home where home where most of her needs are taken care of, but she has some discretionary spending. Based on the basket of goods in Table 22.5, by what percentage does Ednas cost of living increase between time 1 and time 2Mary has income of $2000 today and $1000 tomorrow. She can lend and borrow at an interest rate of 20%. There is 10% inflation. Her preferences for intertemporal consumption are represented by the following utility function u(c, c) = min{c1, 2c2} (a) What is her optimal consumption bundle?Consider the intertemporal consumption problem of Mr Cronus between two periods, say this yearand next year. His utility function takes the form U (c1; c2) = pc1 +0:97pc2, where c1 and c2 arehis consumption this and next year respectively. It can be shown (and you do not have to) thatthis utility function satis es diminishing marginal rate of substitution.His yearly income is stable at 100 unit (let say a unit is ten-thousand). He faces di¤erent interestrates between borrowing and saving. Speci cally, the saving interest rate is 0:02, whereas theborrowing interest rate is 0:04.(a) Describe the budget set facing Mr Cronus.(b) Is Mr Cronus a borrower? Explain your answer.(c) Is Mr Cronus a saver? Explain your answer.
- assume elsa has current income of $50000 and expects income of $60000 next period. interest rate is 6% elsa desires to have the same amount of consumption expenditure during both periods. in the two period certainty framework, determine how much elsa's expenditures are during each period is elsa a saver or spenderAssume a closed economy where the level of investment is 300 and savings function is s = -30+ 0.15y calculatr the equilibrium level of incomeYou are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)
- Which of the following results in an increase in consumers’ lifetime wealth, i.e. an increase in the net presentvalue of lifetime income? (a) Increase in interest rate(b) Decrease in future wages(c) Decrease in interest rate(d) Decrease in current taxes, financed by an increase in future taxesWhich would be more difficult to forecast 10 years fromnow: the number of 60-year-olds or their average disposable income? Why?Explain the relationship that economic variables can have with businesscycles. These have both direction and timing. Give an example economicvariable of each combination of direction timing. Of these two attributes, ifyou had exclusive access to a reliable variable, which relationships wouldyou want this variable to have for forecasting purposes
- A college professor is planning for his retirement years. His utility function is ?(?t , ?r ) = 3c t 0.5+2cr0.5 where ct represents his consumption today (period 1), his active years of teaching, and cr represents his consumption in his retirement years (period 2). During his active years of teaching, he makes a total of ₺3 million, while in his retirement years his total income is ₺1 million. He can borrow or lend at an interest rate of 25% between the two periods. Write an equation that describes the professor’s budget assuming he will spend all his income during his lifetime. If the professor chooses neither to borrow nor to lend during his active years, what will be his marginal rate of substitution between his consumption today and his retirement years? If the professor aims at maximizing his utility, how much does he consume in each period (use the Lagrangian method)? Does he save for his retirement years? If so, how much? At what interest rate would the professor…what is the equilibrium income in this IS-LM model? Y = C +I +GC = 200+0.8(Y-T )I = 1,600-100ｒ G =T = 1,000MS= 5,000 P =2MD/P= 0.5Y - 250ｒ +500 ➀ 5000 ➁ 6000 ➂ 7000 ➃ 8000 ➄ 10000 Please type out the correct answer ASAP within 40 min with proper explanation of the each option given. Will give you thumbs up only for the correct answer.No chatgpt i will give 5 upvotes plz
