Q: For the following statements, identify whether it would be included or excluded in calculating GDP.…
A: GDP is made up of commodities and services generated for market sale as well as certain non-market…
Q: A consumer of two goods has indirect utility v(p,w) = 1/2 -1/2 √w + P₂ P₁ (a) Find the indirect…
A: Money Metric utility Both income and expenditure metrics will be the center of the research on…
Q: Find the present value, in pesos, of an annuity of P20,000 payable annually for 8 years, with the…
A: Given Annuity =P20,000 Rate of interest =10% The first payment is made after 5 years and then the…
Q: 4. According to the Solow growth model, what kinds of public policies should governments of…
A: The Solow-Swan model or exogenous development model is an economic model of long-run financial…
Q: Explain how the CPI is constructed. Why do you suppose most economists agree that it tends to…
A: By monitoring variations in the prices consumers pay over time for a selection of goods and…
Q: Which two policies that we discussed can create an excess burden? Price floors and price ceilings…
A: Price floors and price ceiling are two different price control measures adopted by the government in…
Q: If you obtained a loan of P1.5Million at the rate of 12% per year interest rate to build a house,…
A: A loan means the money is lent by individuals or organizations.
Q: 2. Find the equivalent annual payment of the ff. obligations at 20% interest End-of-Year Payment 1…
A: Any sum of money subject to a rate of interest will grow over time. As a result, the time value of…
Q: Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E):…
A: If the act of production or consumption affects the cost function or utility function of the third…
Q: Teascent is selling candles in Pleasantville. The incremental costs of wax, wick, and other…
A: Price Response function / Demand function : d(p) = 11000 - 980p Two prices at which Teascent sells…
Q: 1. Compute the present worth at time zero of deposits of $1,000 a year for 10 years with nominal…
A: Given Time Period = 10 Years Interest Rate = 18.23% Periodic Payment = $1,000
Q: The company AffordableStuff sells cell phones. The marginal cost for each cell phone is given by the…
A: The provided equation is: Marginal cost function:C(x)=0.01x2-3x+229Marginal revenue…
Q: The ABC Company recently started producing a new product, in addition to two others it has been…
A: First Cost of the Machine = 7000 Life = 5 years Cost of required shed = 2000 Material Cost = 1.1…
Q: Example: U(X,Y) = (XY)-5, Px =2, Px = 1, M = 10 • What will be the consumer's optimal consumption? ●
A: At Optimal bundle, slope of indifference curve given by ratio of marginal utilities, is equal to…
Q: Given the utility function U = X0.5+Y0.5 and budget constraint I=Px X+ Py Y, (a) Is this utility…
A: According to guidelines if multiple questions are given then we have to solve only first 3 The…
Q: Sam likes Pepsi (P) twice as much as he likes Coke (C). Assume the price of Pepsi is $3 and the…
A: Budget constraint shows different combinations of two goods that a consumer can afford with the…
Q: I need help with all of them
A: Over the last two years, the unemployment rate in Wester light has risen from 4% to 8%, while GDP…
Q: A house and lot can be acquired at a down payment of Php500,000.00 and a yearly payment of…
A: The present value factor is used for estimating the current worth of a sum of money that will be…
Q: You are given the following market data for Venus automobiles in Saturnia. Demand: P = 35,000 - 0.50…
A: Equilibrium is the state where demand is equated to the supply maintaining the balance in the market…
Q: Define marginal utility. (50 words)
A: Utility means the satisfaction that a consumer gets after the consumption of a good or service. It…
Q: how does an increase in population effect a countries GNI?
A: GDP stands for the finished products and services generated in an economy during a specific time…
Q: hat type of unemployment might older workers be more prone to experience? Explain how the…
A: Unemployment refers to the economic condition where a worker wants to work and capable but unable to…
Q: Consider a perfectly competitive firm choosing a profit-maximizing level of output. However, there…
A: C = 10 + 2Q + 4Q2 60% market price is $42 40% market price is $22 MC = 2 + 8Q
Q: Which individual is cyclically unemployed?
A: Unemployment is the situation where a person who is willing abd able to work is not getting a job.…
Q: Five friends plan to establish a consulting firm after 5 years. The plan is for each to make…
A: The formula that will be used to solve the given question: Equal payment series compound amount…
Q: 16. In the short run, the profit maximization for a firm in a perfectly competitive market would be:…
A: A perfect competition market is one in which there are many buyers and sellers, all of whom are…
Q: Question 05 The figure below shows the supply and demand of two related markets: eggs and omelets.…
A: Hi! thanks for the question but as per the guidelines, we answer one question at one time. Kindly…
Q: a. With the data above, clearly show your steps including the economic variables involved and…
A: The Gross Domestic Product (GDP) is the measurement of the monetary value of all the final goods and…
Q: 1. Each of two players simultaneously announces either Rock, Paper, or Scissors. Paper beats Rock,…
A: Rock-Paper-Scissors game is a kind of simultaneous game. Simultaneous game is also known as static…
Q: If nominal retail sales increase then Select one: a. real retail sales must also have increased.…
A: Meaning of Retail Sales: Here, the term retail sales are all about selling various commodities…
Q: Suppose that the price of capital decreases. Explain how the firm adjusts its use of capital and…
A: We will answer this question by assuming that the firm have the cobb-Douglas production function…
Q: 4.9 Sky Aviation is purchasing aircraft structural components, fairings, and wing flaps for its…
A: The formula to derive the present value is given as: P = F / (1 + R/c)t Where P : present valueF :…
Q: If the inflation rate is 4.95% compounded annually, how long will it take for prices to double?…
A: The following is the formula to calculate the amount if the principal is compounded at r percent…
Q: a. How does the country’s employment (L) at point D compare to that at point B? Explain your…
A: If we have a production function like Y = AF(K,L) and we draw just the relationship between the Y…
Q: 2) Suppose the following game of "Matching Pennies." In this game, each player chooses heads or…
A: In a Nash equilibrium each player choose the approach that, given the approaches taken by their…
Q: 1. Consider a wine dealer who has k bottles of wine. The dealer can sell them now (t = 0) or can…
A: This question asks us to calculate the sales revenue for selling k bottles of wine. We are given the…
Q: Explain why the short-run marginal cost curve must intersect the average variable cost curve at the…
A: Marginal cost is the additional cost bear by the producer for the production of an additional unit.…
Q: . The seafood restaurant you manage has daily specials. You have observed that the fresh salmon is…
A: Given The price elasticity of demand for salmon is -1.2 The required increase in the sale of salmon…
Q: 1.1 Which represents the law of demand: a shift of the demand curve or a movement along the demand…
A: According to the law of demand, which is a cornerstone of economics, customers will demand fewer…
Q: 1. Consider an economy that produces and consumes bread and cars. The data for two different years…
A: According to the question, it is given that : An economy that produces and consumes bread and cars.…
Q: A utility function is given as U = √MB where B represents the quantity of books consumed and M…
A: In economics, the term "utility" describes the overall satisfaction or benefit from consuming a good…
Q: Economics jj Consider the partial data set in the table represents online hours spent shopping by…
A: ID Income Age Online Hour 2201 57000 51 5 2202 57000 48 4 2203 54000 45 5 2204 17000 35 9…
Q: As a society the US has one of the lowest savings rates in all of the developed countries. Why do…
A: The majority of Americans save money for retirement or unforeseen expenditures. Considering retirees…
Q: 17 Medicaid work disincentive effffects. Consider Figure 18.7, which depicts the labor market…
A: Disclaimer: “Since you have asked multiple sub-part questions, we will solve the first 3 sub-part…
Q: 6. John consumes strawberries and cream together and in the fixed ratio of two boxes of strawberries…
A:
Q: Dana was dating Wade, a wealthy real estate entrepreneur. Wade was much older than Dana and knew he…
A: A contract occurs if a promise was made by a promisor to a promisee and the promisee was adversely…
Q: What distinguishes economic queuing from rationing
A: When people's needs are limitless, economics is the study of how to allocate scarce resources in the…
Q: A6 b4. Elaborate on any four current external risks that may affect trade activity of Singapore.
A: The voluntary exchange of goods or services between various economic actors is referred to as…
Q: QUESTION: Use the sheet 1( picture below) utility function and parameter values to find the optimal…
A: Given u(x1,x2)=ax1-b2x12+cx2+d2x22 for 0≤x1≤ab ......... (1) Given x1<a/b Price…
Q: For each of the following utility functions, find the Marshallian demand function, the indirect…
A: The factors of spending and commodity price are used to generate the indirect utility function from…
Step by step
Solved in 3 steps
- Suppose that at current consumption levels an individual's marginal utility of consuming an extra sandwich is 10 whereas the marginal utility of consuming an extra coffee is 2. Then the MRS (of coffee for sandwiches) that is, the number of sandwiches the individual is willing to give up to get one more coffee is a 5 b. 2 C.1/2 d. 1/5Julio loves gardening. His favourite plants are tulips and hydrangeas. His utility function is ' u(t,h)= t +100h -h^2 where t is the number of tulipsin his garden and h is the number of hydrangeas in his garden. suppose he has a 500 square feet for his garden. each tulip takes up 1 square foot of space and each hydrangeas takes up 4 square feet. he gets both plants for free.If he wanted to maximize his utility, how many tulips should he plant, what about hydrangeas? b) if his yard was only 144 square feet, how many tulips would he plant? How many hydrangeas? C) In order to plant both tulips and hydrangeas, how big does his garden need to be. carfeully explain.A consumer utility function is U = 1 log x1 + log x2. His budget constraint is given by 2x1 + 4x2 = 36. Find out how many units of x1 and x2 should the consumer buy in order to maximize his utility.
- A consumer prefers to consume 1 unit of x with each unit of y. if the price of x is $12 and the price of y is $4 , and he has income of $120, what is the optimal pair (x*,y*) to consume? a. (12,12) b. (20,20) c. (22,22) d. (40,40)You have £20 per week to spend, and two possible uses for this money: telephoning friends back home, and drinking coffee. Each hour of phoning costs £2, and each cup of coffee costs £1. Your utility function is U(X,Y) = XY, where X is the hours of phoning you do, and Y the number of cups of coffee you drink. What are your optimal choices? What is the resulting utility level? You can use the standard result on the constrained maximization of such a function, but must state it clearly. Now suppose the price of telephone calls drops to £1 per hour. What are your optimal choices? What is the resulting utility level? How much income per week will enable you to achieve the same quantities at the new prices as the ones you chose before? What income will enable you to attain the same utility as you did before? Comment on your answer in the context of equivalent variation and compensating variation.A student spends 165 HUF on books (x) and renting bikes (y). The price of an average book is 12 HUF and renting a bike for 1 hour costs 15 HUF. The preferences of the student are given by her utility function U(x,y) = x^(0.9)y^(0.1). Assuming that the student is rational, for how many hours is she renting a bike if she can only rent the bike for round hours?
- If Fred's MRS of salad for pizza equals -5 (where salad is on the vertical axis), then which of the following is True? He will eat 5 times as much pizza as salad He would give up 5 salads to get the next pizza He will eat 5 times as much salad as pizza He would give up 5 pizzas to get the next salad xYou have k20 per week to spend and two possible uses for the money: telephoning friends back home and drinking coffee. Each Hour of phoning costs k2 and each cup of coffee costs k1. Your utility function is U(X,Y)=XY,where X is the hours of phoning you do and Y the number of cups of coffee you drink. What are your optimal choices? What is the resulting utility levels? You can use the standard result on the constrained maximization of such a function, but must state in clearlyRoman loves corn bread. He buys corn meal and wheat flour in order to make corn bread. His recipe calls for two cups of corn meal and one cup of flour for each batch that he bakes. More corn bread is better for Roman. He can bake fractions of a batch, but has no use for corn meal or flour that is left over. What of the following is Roman’s utility function on cups of corn meal, denoted by c, and cups of flour, denoted by f?
- Ceja has utility function U=A2*B2 , where A equals the number of apples she eats each week, while B is the number of bananas she eats each week. Ceja has $20 to spend on fruit each week. The price of an apple is $1, while the price of a banana is $0.25. Find out the combination of Apples and Bananas that maximize Ceja’s satisfaction. If price of Banana is increased by $.25, what will be the new combination of A and B that would maximize her utility? Show graphically and drive the demand curve for BananasThe utility function of a certain good is given by U(x) = 60x - x2 where x represents the number of units produced and sold during a month.How many units must be produced and sold to maximize utility? What is the maximum utility?You have k20per week to spend and two possible uses for this money,:telephoning friends back home and drinking coffee. Each hour of phoning costs k2 and each cup of coffee costs k1. Your utility functions U(X,Y)=XY,where X is the hours of phoning you do and Y the number of cups of coffee you drink. Now suppose the price of telephone calls drops to k1 per hour. What are your optimal choices? What is the resulting utility level