The economy is characterized as: C=100+0.8Yd G=T =50 I=50-25i MS=200 P=1 Md=Y-25i Tax T=50 1. Is tax a lumpsump, specific, ad valorem or proportional tax? 2. What is the equilibrium income? 3. What is the total investment?

The economy is characterized as: C=100+0.8Yd G=T =50 I=50-25i MS=200 P=1 Md=Y-25i Tax T=50 1. Is tax a lumpsump, specific, ad valorem or proportional tax? 2. What is the equilibrium income? 3. What is the total investment?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 3.10P

See similar textbooks

Related questions

Q: The Briggs and Stratton Commercial Division designs and manufacturers small engines for golf turf…

A: Given; Pull System:- First cost= -$1300000AOC per year=-$720000Salvage value=$110000Estimated life=…

Q: what is the formula for the rate on long-term Treasury bonds?

A: Suppose:Amount paid for bond=$10,000Face value=$15,000Counpon rate=$2000

Q: swer the following in the space provid ne attributes of a "good" econometric model? at are the…

A: A)The attribute of a good economic model are:- i) high R squared value which explains the…

Q: If we examine the effects of an iPhone price change on the quantity sold "holding everything else…

A: In economics when an economists wants to determine the relationship between two factors, he requires…

Q: If you make $83200 in Alaska, how much would you need to make in Arkansas to keep the same standard…

A: Real income which means how many goods can be bought with given level of income . If we want to…

Q: True or False. Please explain The production function f(x1,x2,x3) = (min{0.5x1;0.75x2 })0.5 ·x30.5…

Q: A manufacturer's total cost equation per day is given by the equation TC = 440 + 4q+,0001Q². If each…

A: Given Manufacturer's cost function TC=440+4q+0.0001q2 .... (1) Demand function:…

Q: Solve as soon as possible... Suppose a 4 percent increase in income results in a 2 percent…

A: In economics, different types of goods tends to change differently when the consumer incomes…

Q: 2. In a particular economy, currency held by the public is 1,000 shekels, bank reserves are 200…

A: Given; Currency held by public= 1000 shekels Bank reserves= 200 shekels Desired reserve-deposit…

Q: forecasts? 7. Contrast the use of MAD and MSE in evaluating forecasts. 8. What advantages as a…

A: 7. Introduction MAD (Mean Absolute Deviation) is a measure of variability which measures how far…

Q: Exchange rates a. are always fixed between the currencies of two countries. O b. fluctuate to equate…

Q: Ithy by working out, eating healthier, and taking preventive care. Assume that the cost of becoming…

A: 1. No. Becsuse, The only employer in the town is giving the job to everyone irrespective of the…

Q: How much will a person get when redeeming a bond worth $1,200,000.00 today that will mature in three…

A: Present worth of bond = 1200,000 $ Time = 3 months Bank charges = 4 % per month

Q: Price (dollars per unit) 120 100 80 60 40 80 20 0 20 40 60 Quantity efer to the figure above. Which…

A: The law of demamd expresses that at greater costs, purchasers will demand less of a economic…

Q: SuuLLure is defined as having no barriers. meaning firms can freely enter and exit based on profit…

A: A firm produces at the output level where MC equals MR in order to maximize profit.

Q: Taxes adversely affect the allocation of resources because Othey do not always fall more heavily on…

A: Taxes imposed by the government, as well as rent regulation, Invisible hands are hindered when the…

Q: If at the current level of advertising the firm estimates that its advertising elasticity is e ( A )…

A: The advertising elasticity is the responsiveness of demand with the change in advertising…

Q: If median weekly earnings of $865 were to increase by 9%. at a time when the inflation rate were to…

A: given that, median weekly earnings of $865 increase by 9% the inflation rate was to drop by 4%

Q: Assume the velocity of money and real gross domestic product are constant. According to the quantity…

A: Quantity theory of money :

Q: according the concepts of Islamic finance and banking ,explain 2 ways that can raise enough capital…

A: Islamic finance and banking refer to how firms and individuals respond in accordance with Sharia or…

Q: What led to the demise of the Bretton Woods Exchange Rate System?

A: The US dollar was tied to the value of gold under the Bretton Woods System, and other currencies…

Q: Explain why does the government act as a producer of health insurance for certain population group?

A: Health care/insurance coverage is a kind of protection that covers clinical costs that emerge…

Q: Which of the king staten OA. When a large proportion of income is spent on a product or service, the…

A: The demand for the good is considered to be more elastic if change in quantity demanded is more than…

Q: ges are high in poor countries because businesses are run D a. True b. False efficiently.

A: Wages are the remuneration that are recieved by the labors.

Q: he demand and supply functions for product M are P = 83.6 - 0.037 Q P = 15.7 + 0.056 Q. A P10 tax…

Q: A firm’s production function is given by q = min{M, L1/2}, where M is the number of machines and L…

A: Given production function q=min(M,L1/2) Price of Labor, W=1 Price of Machine, Pm=2

Q: 5. Tertiary sources are aids to discover primary or secondary sources or an interpretation of a…

A: Sources helps in giving information. Primary, secondary and tertiary sources are the materials that…

Q: Which of the following would most likely shift the production possibilities curve inward?…

Q: Nominal Average Hourly Year Earnings $10 2018 2019 10 2020 12 Looking at the table, what is the…

A: Average hourly earnings (AHE) is a significant mark of work cost expansion and of the snugness of…

Q: What are the expected effects of austerity measures over the longer

A: Austerity measures Austerity measures are economic strategies used by governments to cut spending in…

Q: How does the size of deadweight loss (DWL) depend on the price elasticities?

A: Deadweight loss is cost to one or the other shopper or maker made because of shortcoming in…

Q: Consider the following hypothesis test Η με 20 H₁ μ<20 A sample of 80 gave a sample mean of 19.4.…

A: We have been given sample of 80 which gives sample mean of 19.4. Standard deviation of population is…

Q: Refer to the figure above. If Good Z is an inferior good and consumers' incomes decrease at the same…

A: Given Good Z is inferior good. A good is inferior when its demand decreases as the income…

Q: Waldo buys only two items, pretzels and ham sandwiches. Waldo has $24 in income, pretzels cost $0.60…

A: In the question, it is given that the income of Waldo is $24. Cost of pretzels is $0.60 per bag.…

Q: Complete each of the following problems showing ALL your work. Answer the following questions…

A: The given utility function is U(x,y) = 0.5x0.4y0.6

Q: True/False and Explain. Evaluate whether the following statement is true or false and explain why.…

A: Monetary policy refers to the name given to the macroeconomic stance taken by the central bank.It is…

Q: Consider a particular market-clearing price and quantity under a perfectly competitive equilibrium.…

A: Consumer surplus is the economic proportion of a customer's overabundance benefit. It is determined…

Q: 3) Diminishing marginal rate of substitution can be seen when indifference curves A) become flatter…

A: The curve that depicts combinations of goods that could provide the consumer with an equal level of…

Q: A monopolist has the following production function Q-L050s where Lis the number of units of labour…

A: Here we have:- Market demand=P=24-Q and Q=L0.5K0.5w(wage rate)=$4r(rental rate of capital)=$16 Total…

Q: 38. If the cost price of 20 articles is equal to the selling price of 25 articles, what is the %…

A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…

Q: he time to assemble the first unit on a production line is 11 hours. The learning rate is 0.86.…

A: Given: First Unit (T₁) = 11 We need to find T5 (fifth unit). Formula for the learning curve would be…

Q: The deterrence hypothesis, outlined in the abstract and introduction of Gneezy and Rustichini's…

A: According to the deterrence hypothesis, criminals are rational actors who assess the costs and…

Q: If the supply of financial capital increases Interest rates will remain unchanged. Interest…

A: Interest rate is determined by the demand and supply of financial capital.

Q: Assume that the market for soybeans is perfectly competitive. Currently, firms growing soybeans are…

A: There are a huge number of buyers and sellers in a perfectly competitive market. The market forces…

Q: 1. The text details 4 reasons to keep your records up to date and accurate. What are they? Why?…

A: Economic record keeping is used to provide timely, trustworthy, scientifically based data that…

Q: Andy and Cathy are in the sporting good industry. Andy has developed a new lightweight soccer goal…

A: We sequential move game between two players andy and Cathy. Where andy moves first.

Q: A clothing store decreases the price of its T-shirts from $20 to $12. Correspondingly, sales…

A: Total Revenue = Price*Quantity So when the price is $20 then the Total Revenue is 20*1200 = $24000…

Q: Is there any graph that can support this answer?

Q: Suppose the function for the utility from good c is denoted as U(c)=2c1/2 . Which of the following…

A: Given Utility function: U(c) = 2c1/2. ..... (1) Where have to find marginal utility from good c

Q: Discuss the main reasons for the collapse of the Bretton Woods system.

A: The Bretton Woods System required a money stake to the U.S. dollar which was thus fixed to the cost…

Question

The economy is characterized as:

C=100+0.8Yd

G=T =50

I=50-25i

MS=200

P=1

Md=Y-25i

Tax T=50

1. Is tax a lumpsump, specific, ad valorem or proportional tax?

2. What is the equilibrium income?

3. What is the total investment?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 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

Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
A4 Consider a linear income tax system in which one’s tax owed to government, T, depends on one’s income, I, according to the formula T = a + tI, where 0 < t < 1, and a is a constant. (a) What is the marginal tax rate (MTR)? Does the MTR change with income? (b) What is the average tax rate (ATR) when the income level is I? (c) If the income tax is progressive, then what can you say about the value of a?
Why $100 spent by government brings a larger increase in the equilibrium level of income than $100 given in tax cut? Explain your answer.
(a) Assume that Gross Domestic Product (GDP)/Total output (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y – T) where T is the tax. Investment (I) is given by the equation I = 2,000 – 100r, where r is the real rate of interest, in percent. Taxes (T) are 500, and government spending (G) is also 500. What are the equilibrium values of C, I, and r?
If a lump-sum income tax of $30 billion is levied and the MPS is .4, the consumption schedule will shift ______? a. downward by 18 billion b. upward by $18 billion c. downward by $30 billion d. downward by $12 billion
C= C0+cYd. Investment, government spending, taxes and transfer payment is autonomous. Autonomous taxes and government spending increase in the same amount. How do government budget and equilibrium income change?
The government lowers $0.9 trillion in taxes, restoring GDP from $10 trillion to its potential level of $11.2 trillion. What is the value of the tax multiplier? A -1.33 B -0.9 C -0.75 D -1 E -1.2
If disposable income increases from $100 to $200 and consumption increases from $100 to $190 then the tax multiplier = .... (a) 10 (b) 1 (c) -1/9 (d) -9
Assume that Turkey has s a tax rate of 15% on the first 15,000 TRY of taxable income, then 25% on the next 20,000 TRY, then 35% on the next 30,000 TRY, and a tax rate of 40% for all taxable income above 65,000 TRY. Suppose that Turkey provides a 4,000 TRY exemption per child.Hasan has 2 children, and he earns 82,000 TRY in a year.a) Calculate total tax payments of Hasan.b) Calculate average tax rate for Hasan.
Which of the following are used in fiscal policy?A. government purchases, transfer payments and taxesB. taxes and government purchasesC. transfer payments onlyD. taxes and transfer paymentsE. government purchases only
WACC=(VE×Re)+(V/D×Rd×(1−Tc))where:E=Market value of the firm’s equityD=Market value of the firm’s debtV=E+DRe=Cost of equityRd=Cost of debtTc=Corporate tax rate WHY IS THE RD MISSING? THE Answer should be 10%?WACC = 1/3*16% + (2/3 * 10% * 0.7) = 10%?