The free-rider problem is that: free public transportation is overcrowded. people will not voluntarily pay for something that they can obtain without paying. government supplies goods at no charge to people who can afford to pay for them. public goods often create large external costs.

Q: We are given the following information for UWI Land. At the start of the period, there are 334,250…

A: unemployment refers to a state in which an individual actively looking for employment but is not…

Q: Which of these is a possible cause of the value of the Gini coefficient increasing from 30 to 35? a.…

A: The Gini coefficient is an economic indicator that represents the income distribution in the…

Q: 1)The overshooting model attempts to explain; Select one: a.why purchasing power parity plays no…

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

Q: Firm A and Firm B sell coffee and engage in Bertrand competition. They have a constant marginal cost…

A: In Bertrand equilibrium, firms have control on prices and they change prices according to the…

Q: Consider a competitive industry (firms take the market price as given). Market demand is Each firm…

A:

Q: Suppose the Bank of YMM has deposits of $50000 and target reserves are equal to actual reserves of…

A: Commercial banks must hold a specific amount of their total deposits either with themselves or with…

Q: Function u(x₁, x2) A. Consider a consumer whose preferences can be represented by Cobb-Douglas…

A: Note: “Since you have posted multiple questions, we will provide the solution only to the first…

Q: QUESTION NO. 3 Complete the following table and estimate the equilibrium levels of output and…

A: The aggregate expenditures model calculates the relationship between aggregate expenditures and real…

Q: The law of demand states that: price and quantity demanded are inversely related. the larger the…

A: Demand curve is the graphical representation of demand schedule.  Demand schedule is the tabular…

Q: Price Level (average price) PE P₁ AD 3 C) $600 billion. D) $800 billion. AD₂ 5.2 AD₁ C 6.0 AS 5.6 QF…

A: Equilibrium is where aggregate demand equals aggregate supply.  Inflationary gap is when the actual…

Q: Long run macroeconomic equilibrium is when a. AD = LAS. b. SAS = LAS. C. AD = SAS = LAS. d. AD =…

A: Aggregate demand is the collective demand made by all buyers in the economy. Aggregate supply is the…

Q: If the slope of the total productivity line is decreasing as output increases, what does that say…

A: Marginal product is the increase in units if goods due to the additional unit of worker.    Marginal…

Q: Suppose the information in the table is for a simple economy that produces and consumes only four…

A: Nominal GDP is the value of goods and services produced within the boundaries of the nation. The…

Q: Quantity Variable cost Total cost 0 vats of juice $0 $30 1 10 40 12 55 3 75 14 100 5 130 16 165 10 1…

A: Average cost The average cost is the price per unit produced during a production run. It denotes…

Q: Landia production possibilities: Fish Chips B с Fish 8 6 Chips 0 10 Scandia production…

A: Comparative advantage is the ability of the country or individual to produce the good at a lower…

Q: If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound, then:…

A: Equilibrium is achieved at the output level where Qs=Qd

Q: assume that total sales revenue for 2018 is projected to be $1,290,518. Assume also the following…

A: %NMC=Net market contribution/Total sales revenue Net market contribution=Total sales revenue-Total…

Q: that 4 percent of capital depreciates each year. Assume further that country A saves 24 percent of…

A:

Q: Consider a perfectly competitive firm in short run. If this firm faces a market equilibrium price…

A: A market is said to be perfectly competitive when the participants in the market are in large…

Q: The consumer's utility function for Consumption (C) and Leisure (L) is given as U(C,L) = √CL His…

A: Consumer utility function: U(C,L)=CL          .......(1) Hourly wage w =$10 Non-labor income (V)=…

Q: Campus Bookstore is the only textbook supplier in the town, a profit-maximizing business. Customer…

A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…

Q: True or False. There is an approximate 50/50 split in total revenue of prescription vs.…

A: In U.S. Food and Drug Administration (FDA) regulated and approved the prescription and…

Q: Draw a graph that shows the typical relationship between weighted probabilities (in prospect theory)…

A: Prospects theory is one of the theory comes under behavioral economics. It aims to describe the…

Q: a) Write out the extensive form of a game between a farmer (playing in the first round) and nature…

A: An extensive-form game is a detail of a game in game theory, permitting (as the name proposes) for…

Q: (a) What is the equilibrium level of real GDP in this economy? (b) Compute the marginal propensity…

A: Aggregate expenditure is the sum of consumption, planned investment, government spending, and net…

Q: 4) Monopolist with tax: Suppose the firm faces the following inverse demand function and total cost…

A: A monopoly is a market form where there is only one participant selling the goods and services,…

Q: Year 2001 2002 2003 2004 2005 Output Price Nom. GDP Real GDP 50 $23.00 $1,150.00 $1,350.00 52 $…

A: The better off or worse off can be seen from the real GDP.  If real GDP increases, the economy is…

Q: The following questions all relate to the labour market. What is the participation rate? How does it…

A: Labor market The labor market, often known as the job market, is defined as the supply and demand…

Q: A particular computing company finds that its weekly profit, in dollars, from the production and…

A: Marginal profit is the additional profit earned when an additional unit of output is produced.

Q: 1. Bob and Alice have strategies "Run" and "Stop" in a game. If both of them run, they both get the…

A: Given information There are 2 players: Bob and Alice Strategy: Run and Stop   A dominant strategy is…

Q: Use the information for the question(s) below. The semiannual, 8-year bonds of Alto Music are…

A: Coupon payment is the product of coupon rate and face value of bond.  So,  Coupon payment = Coupon…

Q: Can you explain the way how to measure the income in-equality in the Philippines?

A: The unequal distribution of income among a population is known as income inequality. Income…

Q: The construction cost of the bypass is $20 million, and $500,000 would be required each year for…

A: Given data:  ====Construction cost of the bypass: $20 millionAnnual Maintenance each year:…

Q: 0 10 $5,000 20

A: Formula to figure out the present value is given as:  P = F(1+R)nP : present value F : future…

Q: 1. Define “economies of scale”.

A: Total cost is the cost of production of goods.  And Average total Cost is the cost of production per…

Q: If the internal rate of return on a project exceeds its cost of obtaining the funds, it’s a good…

A: IRR is the internal rate of return.  The IRR is where net Present value is zero.  So, IRR is where…

Q: The Marketing Department has completed its estimates of cash flows for your project and has given…

A: IRR is where NPV is zero.  IRR is internal rate of return.  NPV is net present value.

Q: Exercise 4 Consider a monopolist operating a car park. Customers purchase monthly parking passes.…

A: a)  Inverse demand is given by 2p=520−Qorp=260−0.5Q   The total revenue function's derivative is…

Q: □ A firm hires two people and output increases by 20 units. The firm adds one more person and output…

A: Marginal value is the value derived from the additional unit of variable.  Marginal product of labor…

Q: Consider a pure exchange economy with two goods, r and y, and two consumers, 1 and 2. The consumers'…

A: For pareto efficient allocation Marginal Rate of Substitution of consumer 1(MRS1)=Marginal Rate of…

Q: Question 1. What is the difference between normative and positive approaches to public policy?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: a. Complete the table below                                              Quantity TC TVC AFC ATC…

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

Q: Two bidders compete in a sealed-bid auction for a single indivisible object. For each bidder , the…

A: Let the valuation of two bidders be  : b1 & b2  Also the their valuations for the bid be : v1…

Q: The demand for an economics textbook is given by: Q = 796 - 3p^2 Find the value of Q1 when demand is…

A: Price elasticity measures how sensitive the supply and demand of your product are to price…

Q: Consider the macroeconomic model show C= 1,500+0.80Y 1= 2,000 G=1,250 NX-500 Y=C+I+G+NX Fill in the…

A: Aggregate expenditure is the sum of consumption, investment, government spending, and net export.…

Q: A small business owner can invest any amount of effort e ≥ 0 to produce output valued at 2e. The…

A: Value of product = 2e Cost of production = e2 Government expropriates a fraction = 2e (1-t ) - e2 In…

Q: Part 1: Spatial Equilibrium The demand in market 1 is D₁ = 24 - P₁ The supply in market 1 is S₁ = -2…

A: Equilibrium is attained in the market at the point where the demand and supply are the same. At the…

Q: 12% per year. For the cash flows shown, use an annual worth comparison and an interest rate of First…

A: The annual worth (AW) value for an alternative will be inclusive of the two components: capital…

Q: As more firms enter the market: O the short-run market supply curve shifts to the left. the…

A: The market place is the path that is providing an opportunity for trade. Here, the consumers and the…

Q: Provide strong arguments in favor of Universal Basic Income/Basic Income Guarantee.

A: Under the socio-political financial transfer idea known as universal basic income, the government of…