The major economy in world relies on the open trade.  Justify the statement with examples.

Q: a. In the long run, aggregate supply will adjust to move the economy back to the full-employment…

A: Short-run equilibrium in the economy occurs at the intersection of the AD and AS curves.  Long run…

Q: Consider preferences for cookies (on the x-axis) and ice cream bars (on the y-axis) for different…

A: the indifference curve refers to the curve that is drawn as a downward-sloping convex to the origin.…

Q: Visit the websites for the World Bank (www.worldbank.org) and the International Monetary Fund…

A: The World Bank is an international institution whose mission is to lessen poverty and encourage…

Q: Gouge-em Cable Company is the only cable television service company licensed to operate in Backwater…

A: The yearly rate of return is the % change in the value of an investment. For example: If you assume…

Q: The graph to the right depicts the daily total cost and total revenue curves for a firm. If the firm…

A: The equilibrium occurs where the MR = MC. Firm does not have incentive to change the level of output…

Q: The desired reserve ratio is 10 percent of deposits, and the currency drain ratio is 1 percent of…

A: Money multiplier is used to calculate the value of change in money supply.  Change in money supply…

Q: 1. Consider a pure exchange economy with two goods and two consumers. Let F denote food and C denote…

A: Pareto efficient: It is that allocation (A) where there doesn't exist any allocation which is pareto…

Q: PRICE 63 36 24 15 240 QUANTITY 420 Supply Social Value Demand Refer to Figure 10-5. The socially…

A: The socially optimal quantity refers to the level of production or consumption of a good or service…

Q: Which tax is good progressive or regressive and which situation? Kindly explain.

A: A tax is a financial charge or levy that a government imposes on people or organizations in order to…

Q: Suppose that a manufacturer produces two brands of a product, brand 1 and brand 2. Suppose the…

A: Profit maximization refers to the determination of the price and output level that will yield the…

Q: Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.…

A: The dead-weight loss refers to the loss of consumer surplus and producer surplus. The decline in the…

Q: Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of…

A: In monopoly ,  Profit is maximized where MR = MC  MR is the marginal revenue  MC = Marginal Cost…

Q: O a. $1,250 b. $2,500 c. $625 d. $5,000 C.FS F5 PRICE F6 300 F7 250 200 150 100 50 25 F8 50 Refer to…

A: The larger the producer surplus, the greater the incentive for producers to continue supplying goods…

Q: Use the graph to the right for a monopoly to answer the questions. What quantity will the monopoly…

A: A price ceiling refers to a restriction that is imposed by the government on the price of a specific…

Q: Two countries the US (U) and Fiji (F). Each country i E {U, F} can decide whether to impose a…

A: The model presented in the problem describes a situation in which two countries, the US and Fiji,…

Q: 4. A loan of P8,000 has an interest of 10% compounded annually is to be paid by equal annual…

A: Future Value: The future value is the magnitude which is the accumulation of the annual interest…

Q: Assume that the economy is initially operating at the natural level of output. Graphically…

A: IS-LM Model: Economist like, Hicks and Hansen have explained the integration of the real and money…

Q: When we measure and record economic value, we use money as the Select one: O liquid asset O medium…

A: Money is a medium of exchange that is used to do transaction for goods,services and debts. Money…

Q: Price competition in an oligopoly leads to a high probability of : a. higher prices b. price…

A: An oligopoly is a market structure characterized by a small number of large firms that dominate the…

Q: Consider a government which collects tax on wages received by workers to provide public goods. This…

A: Labor demand refers to the amount of labor that firms are willing and able to hire at a given wage…

Q: QUESTION 3 When firms have multi-market contact, it is always optimal for cartel to set the cartel…

A: An economic scenario known as a monopoly occurs when there are no close substitutes available to…

Q: Refer to the above diagram where Ig is gross Investment, X is exports, G is government purchases, S…

A: For the equilibrium in the economy , the general condition is that the real GDP (Y) in the economy…

Q: Please no written by hand solutions complete a STEP (social, technological, economic, political)…

A: The technique of analyzing how people, businesses, and entire economies behave economically is known…

Q: Choose a company that produces a specific product Illustrate how the effect of diminishing marginal…

A: The concept of diminishing marginal returns in economics refers to a situation where the increase in…

Q: QUESTION 13 Consider a market where two firms (1 and 2) produce differentiated goods and compete in…

A: A situation in which each player in a game is making the best choice feasible given the choices of…

Q: Which of the following is some evidence we discussed in lecture that trade affects firms of…

A: Introduction: The "China shock" refers to the period from the early 2000s onwards when China emerged…

Q: A Php 12,000 face value discount note has a term of two and a half year. The simple discount rate is…

A: Discounts are price reductions that are provided to customers as a perk for making a purchase. It is…

Q: Labo r (wor kers) 0 1 2 3 4 5 6 Total product (units) 0 14 19 Marginal product 3 3 1 Ave rage prod…

A: Total product is the total no. of units produced with the use of resources.  Marginal product is the…

Q: Two countries the US (U) and Fiji (F). Each country i E {U, F} can decide whether to impose a…

A: (a) Only the US imposes a tax: If the US imposes a tax of $2 on its polluting firms, then the…

Q: Your friend Tim wants to open a checking account, but he's not sure how to do it. Explain the…

A: A checking account is a type of bank account that allows individuals to deposit money, withdraw…

Q: An upward – sloping demand curve doesn’t make sense in my business. All I know is that if I raise my…

A: Demand curve and the law of demand The demand curve depicts the relationship between price and…

Q: If Sasha works for 7 hours she can rent out 6 apartments, and if she works for 8 hours she can rent…

A: The marginal benefit of an activity will be computed as additional benefit received with an…

Q: If a tin of sardines creates a noxious odor for non-sardine-eaters equivalent to $1 per tin, the…

A: Externality is the external cost or benefit that is borne by the third party.  Positive externality…

Q: Suppose the demand and the supply for lumber (harvested wood processed in a sawmill) used for…

A: Demand-supply equilibrium: An individual’s willingness to pay for each unit of the quantity he or…

Q: ADTF Distributors produces and sells a line of virtual sketch pad devices with a micro-USB…

A: Fixed cost of production: Fixed costs are that part of the production which is independent of the…

Q: 1. In a manufacturing company, a new equipment cost P200,000 and has a useful life of 10 years. The…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Which of the following car loan options would require a buyer to pay the LEAST amount back for a car…

A: here, we have to find the repayment value of different types of loan and need to compare which one…

Q: Explain why this curve has the shape that it does. Be specific and provide examples in your…

A:

Q: Differentiate the function. 기 dx y= || 6 30

A: The derivative of a function refers to the rate of change. The derivative of the variable “y” with…

Q: In a perfectly competitive market, if market supply increases, price Question 15 options: decreases…

A: The equilibrium occurs where the demand and supply forces are equal. The Single firm or buyer can…

Q: Use a diagram to describe block pricing of a supermarket product

A: Price is the method businesses use to determine and establish the value of a good or service. This…

Q: Current Attempt in Progress Galvanized Products is considering purchasing a new computer system for…

A: The value that represents the aggregation of all the cash flows related to the current value of the…

Q: DesGames used your table from the previous screen to create a revenue model: r(p)=p(20000-500p). p…

A: Total revenue is the product of price and quantity.  Marginal revenue is the revenue generated from…

Q: Social security benefits have exceeded/will exceed payroll taxes starting in O 2030. O 2020. 2010.…

A: The Social Security benefits are funded through payroll taxes. The employers and their workers will…

Q: 44. In a perfectly competitive market for a good with a downward sloping demand curve and an upward…

A: The measure that depicts benefits or costs that are not being not received or incurred financially…

Q: Consider the following data on an asset: $203,000 5 years $70,000 Cost of the asset, / Useful life,…

A: Cost of Asset = 203,000 Life = 5 Salvage Value = 70,000

Q: I got confused with this one and thought the transaction would not be recorded in the balance of…

A: - New Yorker buys a $100 telephone answering machine in New Jersey . The New Jersey company deposits…

Q: Is a competitive market “efficient”? Define efficiency and explain.

A: A competitive market is a market in which there exist a large number of buyers and sellers, the…

Q: is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable…

A: Equilibrium in market for loanable funds is achieved at a point where demand curve intersects the…

Q: Consider the UK automotive sector, where firms with heterogeneous productivity, subject to…

A: A monopolistically competitive corporation produces the amount where marginal revenue equals…