Two sector economic model involves the following activities except O Households will get rents, wages, interests or profits in the factor market O Firms will produce goods and services to be sold in the product market O Households will pay consumption expenditure on goods and services Government will collect taxes from Households and Firms
Q: A machine purchased 3 years ago for $140,000 is now too slow to meet growing demand. The machine can…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
Q: a There are disputes sometimes even after the goods have been delivered. Explain five ways of how…
A:
Q: During the initial months of the COVID pandemic, the number of unemployed people in the State of…
A: Unemployment is the situation where a person is looking for job and interested to work at prevailing…
Q: 1. Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000,…
A: Fixed cost=$25,000 Variable cost= $0.15 Selling price= $0.40
Q: 4. X generator has a first cost of $20,000, AOC of $15,000, and S of $5000 after 4 years. Y…
A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…
Q: 2. What two features of the Indian economy meant that an increase in rice prices was likely to…
A: In the India economy, it can be seen that agriculture is the primary activity performed by a larger…
Q: Consumer surplus is equal to: the consumer's willingness to pay for the good, minus the marginal…
A: "Consumers in economics satisfy there demands by buying commodities and services. Consumer surplus…
Q: Suppose a two-person household. Person 1 has h1 units of time available and takes l1 units of…
A: The budget constraint requirement is the limit of the opportunity set — all potential combinations…
Q: Tariff on tennis racquets Suppose a country imports tennis racquets. If the government introduces a…
A: A tariff is a type of tax levied by a country at the border on an imported good. Tariffs have…
Q: c) Obtain information on the following two funds: Colonial First State Developing Companies Fund…
A: An investor refers to a person who puts money into a business in the hopes of making a profit or…
Q: find the total utility given the maximum umbination of good x and y. Use. Lagraangian approach. w…
A:
Q: 1.C Suppose the Federal Reserve buys Treasury Bills and Treasury Bonds in the open market. Compared…
A: Here, it is given that the Federal Reserve buys treasure bonds and treasury bills in the open market…
Q: Identify 5 areas of the economy where the influence of the 4IR was either positive, negative or…
A: Smart gadgets will have increased access to data as the Internet of Things grows more ubiquitous,…
Q: Would you expect the presence of the labor unions to lead to higher or lower pay for worker-members…
A: a labor union is an association of laborers shaped to propel its individuals' advantages in regard…
Q: A cash flow has the following income values: $100 at end of year 2, $200 at end of year 3, $300 at…
A: Payment at the end of 2nd year = $100 Payment at the end of 3rd year = $200 Payment at the end of…
Q: TVC 0 65 105 135 167 a. 203 244 293 d. 8 55 355 9 432 10 527 6. Suppose the price determined by the…
A: TC = TFC + TVC AVC = TVC/Q ATC = TC/Q MC = Change in TC / Change in Q
Q: he monetary policy instrument the Reserve Bank chooses to use is the ___ discount rate.…
A:
Q: According to the Reserve Bank of Australia (RBA), which of the following is a monetary policy goal?…
A: Reserve bank of Australia has different policy targets which it tries to achieve.
Q: Suppose in our two-period model of the economy that the government, instead of borrowing in the…
A: Budget constraints can be defined as all the combination of goods and services that the customers…
Q: a) Identify the type of market structure the firm is operating in. Justify your answer. b) What is…
A: Average total cost (ATC) refers to total cost divided by the total quantity of output produced, .…
Q: An electronic-parts manufacturer with U-shaped short-run cost curves is producing 15,000 units per…
A: Cost function shows how the cost of the production of a good changes with the change in the quantity…
Q: Country A is increasing tariffs on steel imports to protect country A's local steel industries. How…
A: Exchange strategy is the arrangement of arrangements, guidelines, and practices by an…
Q: Question 30 The short-run Phillips curve is based on the assumption that there is_____.…
A: A. W. Phillips is credited with inventing the Phillips curve, which says that inflation and…
Q: Why does productivity growth in high-income economies not slow down as it runs into diminishing…
A: Productivity alludes to the proportion of the result of a business, or an economy contrasted with…
Q: Salesperson X and Salesperson Y are with the same brokerage office Salesperson X lists a property…
A: In a market, when an individual acts on behalf of another individual, he is known as an agent.
Q: During the pandemic, stockpiling behaviours have been criticized in the newspapers and described as…
A: A socially desirable outcome is such an outcome that maximizes overall society's payoff.
Q: The Supply and Demand equations for the Whatsit market are given by Supply: p = 6 + 0.19² 。 Demand:…
A: Demand and Supply, in economics, is the connection between the quantity of a commodity that…
Q: The Time of Payment of Claims provision requires that an insurance company pay Disability Income…
A: The Time of Payment of Claims provision requires that an insurance company pay Disability Income…
Q: Ed received an income tax refund of $3,200 in September 2019. He put the money in a drawer and spent…
A:
Q: Suppose a bank has $2,500,000 in checkable deposits and the required reserve ratio is 10%. Also, the…
A: Given information, Checkable deposits: $2,500,000 Required reserve ratio: 10% Total reserves:…
Q: the Reserve Bank increases the quantity of monetary base, then: the cash rate falls —…
A: Reserve bank is the central bank of the country that controls money supply.
Q: 1. How do you think Fed policy might change if it included energy and food prices in its measure of…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: Let’s consider an economy where all firms are favouring remote work to favour physical distancing…
A: Due to pandemic to reduce from spreading remote work is the good option that a firm can offer to…
Q: The U.S. economy is faltering, so the value of its associated currency, the dollar, is likely to
A: Here, it is given that US ex experiencing a faltering of the economy, which explains a slowdown of…
Q: Assume George and Abe are stranded on an island and can only produce two goods: fish and coconuts.…
A:
Q: Question 5 Consider the graph below. Should this firm stay open or shut down in the short run and…
A: Shut down point:- A shutdown point can be explained as a phase in production activities where a…
Q: 1. Phil's Carvings, Inc. wants to have a weighted average cost of capital of 8%. The firm has an…
A: The debt equity proportion is a proportion of the overall commitment of the banks and investors or…
Q: Why is this answer different to the other answers for the same question?
A: Cournot model is an economic model wherein contending firms pick an amount to create freely and all…
Q: Question 34 Use the information in the table below to calculate the Real GDP for each year during…
A:
Q: In the Solow growth model, suppose that the per-worker production function is given by y=zk2/3 . The…
A: "Production function demonstrates the relationship between factor inputs involved in the production…
Q: Let's consider an economy where all firms are favouring remote work to favour physical distancing…
A: Subsidy to promote remote work is the good idea to stop the spreding of the virus in the pandemic…
Q: company has purchased a large new trucktractor for over-the-road use (asset class 00:26). It has a…
A: The monetary worth of an asset reduces over time due to use, wear and tear or obsolescence. This…
Q: demand function for a firm's domestic and foreign markets are: AT) (5.4) P¡ = 50 - 401 Pa=40-…
A: Given information
Q: Question 20 Njeri works part-time but she is a full-time student at PGCC. She can go to school by…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: Lucia lives in Denver and enjoys drinking lattes and eating scones. The price of a latte is held…
A: Budget constraint shows all combinations of two goods that can be produced with the given level of…
Q: You've decided to sell sweatshirts for the upcoming game. You project that at a price of $36.48 per…
A: Profit is maximized at a point where marginal revenue is equal to marginal cost.
Q: q TVC 0 0 1 65 2 105 3 135 4 167 5 a. 203 6 244 7 293 8 55 355 9 432 10 527 4. Explain why the…
A: MC(marginal cost) is the change in TC(total cost) when an additional unit of good is produced. MC…
Q: If there is no change in circumstances, what is the only factor that will increase commodity prices?…
A: Demand implies the quantity demanded of a product at each price level. Supply implies the quantity…
Q: Which of the following is an example of a nominal variable? A.) Output B.) Employment…
A: There are two types of variables Macroeconomics is concerned with, nominal and real variable.
Q: Consider the perfectly competitive market for California oranges. Explain the characteristics that…
A: In perfect competition, there are large number of firms selling homogeneous goods.
Step by step
Solved in 2 steps
- By using the concept of the Heckscher-Ohlin model, and information assumptionsbelow this i. Two factors of production, namely Labor and Landii. Two production goods, namely Cloth and Foodiii. Cloth production is labor intensiveiv. Food production is land intensivev. The rest are other HO assumptionsvi. aLC, aTC, aLF, aTF, and a*LC, a*TC, a*LF, a*TF areLabor and Land input units used for the production of eacheach Cloth and Foodvii. w is the factor price of Labor and r is the factor priceLand production a) Show that Cloth is a commodity that is labor intensive and Foodis a land intensive commodity?k) According to the Stolper-Samuelson Theorem, an increase in the relative price of outputPC/PF, how does it affecta) The relative income of the factors of production Labor and Land or w/r?b) Land/Labor Ratio? l) According to the H-O Model, a country has a comparative advantagein producing a commodity when? Give an example. m) According to Rybczynski theorem with an increase in the factor of…Assume an economy produces only two goods ( shoes and computers ) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum. Production in this economy is subjected to the laws of diminishing marginal returns and resources are assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers and vice versa is 1. On the basis of the forgoing assumptions , drawthe economy's production possibility frontier on hindsight of the relevant assumption and why the points outside the frontier unattainable?.Assume an economy producing only two goods (shoes and computers) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions: i. Draw the economy’s production possibility frontier on hindsight of the relevantassumption.
- Assume an economy produces only two goods ( shoes and computers ) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum. Production in this economy is subjected to the laws of diminishing marginal returns and resources are assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers and vice versa is 1. On the basis of the forgoing assumptions , ( i )economy's production possibility frontier on hindsight of the relevant assumption ( ii ) why the points outside the frontier unattainable? ( III ) identify three ways by which the economy can attain the level of production outside the production possibility frontier. ( iv ) what happens to the production possibility frontier when the economy discovers an improved technology for shoes ( v ) what happens to the production possibility frontier when technological change overwhelmingly favors the production of computers. ( vi ) assume now the sacrifice…Assume an economy produces only two goods ( shoes and computers ) with a fixed amount of productive resources and technology and employing all its productive resources to the maximum. Production in this economy is subjected to the laws of diminishing marginal returns and resources are assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers and vice versa is 1. On the basis of the forgoing assumptions , ( i )economy's production possibility frontier on hindsight of the relevant assumption ( ii ) why the points outside the frontier unattainable? ( iv ) what happens to the production possibility frontier when the economy discovers an improved technology for shoes ( v ) what happens to the production possibility frontier when technological change overwhelmingly favors the production of computers. ( vi ) assume now the sacrifice ratio is greater than 1, show what will happen to the shape of the production possibility frontier. (vii) mention two conditions…2. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Based on this model, firms earn revenue when purchase in product markets. Suppose Latasha earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $10 to have breakfast at Dinah's Diner. Dinah's Diner pays Jake $350 per week to work as a short-order cook. Jake uses $250 to purchase air travel to Hawaii from Flyaway Airlines. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Latasha earns $550 per week working for Flyaway Airlines. Jake spends $250 to purchase air travel to Hawaii from Flyaway Airlines. Latasha spends $10 to have…
- A production possibilities curve is drawn basedon which of the following assumptions?a. Resources are fixed and fully employed, andtechnology advances at the rate of growth ofthe economy overall.b. Resources such as nonrenewable resourceswill decline, but labor remains fullyemployed and technology is unchanged.c. Resources can vary; most resourcesexperience times of unemployment; andtechnology advances, particularly duringwartime.d. Resources such as labor and capital will growand are fully employed, and technology isunchanged.e. None of the answers correct.Question 2You have been employed as the chief economist for the economy UWI Land. The head statistician has provided you with the following information:Compensation of Employees900Corporate profits 400Factor income paid to the world 325Factor Income received from the world170Indirect taxes 775Subsidies 125Depreciation 120Consumption of goods 850Net interest 75Rent Income 125Consumption of services 475Residential investments 350Non-residential investments525Government Expenditure 925Imports 700Exports 300Proprietor’s income 300Calculate UWI Land’s GDP using the Income and Expenditure ApproachAssume an economy producing only two goods (shoes and computers) with a fixed amount ofproductive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions:i. Draw the economy’s production possibility frontier on hindsight of the relevantassumption.ii. Why are points outside the frontier unattainable? iii. Identify three ways by which the economy can attain the level of production outside thePPF. iv. What happens to the PPF when technological change overwhelmingly favours theproduction of computers? v. What happens to the PPF when the economy discovers an improved technology forproducing shoes? vi. Assume now that the sacrifice ratio is greater than 1, show what will happen to the…
- Consider the model of a firm that produces final goods using R&D and components as inputs, with cost dataas follows:Assembly: Total cost of production = PAQA = 400Earnings of High-Skilled Labor = WHHA = 100Earnings of Low-Skilled Labor = WLLA = 200Earnings of Capital = RKA = 100R&D: Total cost of production = PRQR = 400Earnings of High-Skilled Labor = WHHR = 175Earnings of Low-Skilled Labor = WLLR = 125Earnings of Capital = RKR = 100A) In which factor(s) is assembly intensive? In which factor(s) is R&D intensive?B) Suppose that due to the opening of trade, the price of assembly falls by ∆PAPA= −20%, the price of R&Dremains unchanged, ∆PRPR= 0%, and capital’s share earnings remains constant.C) What has happened to the relative wage of high-skilled/low-skilled labor? Does this match the predictions of the offshoring model?Explain in your words that how equilibrium is achieved in three sector economy? Please solve within 30 minutes and avoid plagiarism.Economics: Public Economics Question: 1 Refer to Graph 2. Suppose the TANF program is established. What is the individual’s consumption if they spent all of their time in leisure? Do not include a dollar sign when writing your answer. Guess: 10,000 (with margin: 0) Question: 2 Refer to Graph 2. For every dollar earned by the individual below the cutoff (such that they are eligible for TANF), benefits decrease by how much? Do not include a dollar sign when writing your answer. Guess: 0.5 (with margin: 0) Question 3: Which of the following types of balanced budget requirements (BBRs) are least effective in restricting deficits? a. ex post BBRs b. neither ex ante nor ex post BBRs c. both ex ante and ex post BBRs d. ex ante BBRs Thank you for your help and support Academic Agent!