What good is economic theory if it can't predict the behavior of a specific individual?

Q: For the following scenarios, use the supply and demand graph to predict the resulting changes in the…

A: The national savings rate is the GDP that is saved instead of spent in an economy. It is computed as…

Q: Why Keynes argues that the “Classical” approach is a “special case” while his approach is the…

A: Introduction The classical economist believes that there is full employment exists in the economy.…

Q: why is competition good for the consumer from an economics perspective

A: We know that firms in a perfectly competitive market produce the socially optimum quantity of output…

Q: The following equations represent the quantity demanded (Qd) and the quantity supplied (Qs) for…

A: A price ceiling is the established upper limit on what a seller is allowed to charge for an item or…

Q: Suppose a firm has an average cost function given by AC = 20q - 10+ Determine the output that will…

A: Cost function determines the functional relationship among the cost and output. Average cost (AC)…

Q: An individual is observed throwing money into the sea. Is this behaviour consistent with the…

A: In economics, optimization aims at achieving efficient usage of the resources—maximization of…

Q: Ques 1. Sally consumes two goods, X and Y. Her utility function is given by the expression U=3XY².…

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Q: Find dy dx = x² +7. for y = √u and u= (Simplify your answer. Type an expression using x as the…

A: A derivative is a measure of how quickly one thing changes in relation to another. Derivatives are…

Q: 3. Explain in detail and without the aid of graph how an economy starting at a level of capital per…

A: Steady state level of capital per capita is the level of capital per capita where the capital per…

Q: Consider the following pairs of goods. In each case, which would you expect to have the more elastic…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What kind of externality is in the market above? a. negative consumption externality b. positive…

A: An externality refers to an indirect cost or benefit to an uninvolved 3rd party that arises as an…

Q: How much would the investment be at an interest rate of 10% per year? Question 6i, If a company…

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Q: all that a consumer with utility Marshallian demand u(7₁, 7₂) = min{7₁, 27₂} 2w W x(p, w) = (2p₁ +…

A: utility functions show the relationship between the utility and commodities that are consumed.

Q: A commodity has a demand function modeled by p= 112 - 0.5x and a total cost function modeled by C =…

A: The profit is maximized where the Marginal revenue is equal to the marginal or MR= MC.

Q: 2) An industry consists of three firms with identical total cost functions C(q) = 20q+q². Market…

A: Given that, Three firms with identical total cost function: ?(?) = 20?+?², Market demand: ?(?) =…

Q: Suppose in Cape town there is only one producer of Wine knowns as Cape Town Wines. Cape Town Wines…

A: Import quota refers to the physical limit on the quantity of the good that can be imported and it is…

Q: PROBLEM 7. At a certain interest rate compounded semiannually, P7,000 will amount to P30,000 after…

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Q: Suppose real GDP per capita in Sweden is 328,689 krona, and the price level in Sweden (measured…

A: Given information, Real GDP per capita in Sweden: 328,689 krona  Real GDP per capita in Botswana:…

Q: The following income distribution data are for Lesotho: Quintile Percent Share Lowest 10% 2.2%…

A: Given information National income 1.69 Population Income Share Lowest 10% 2.20% Lowest 20%…

Q: For the cost function below, where c is the cost of producing q units of a product, find the…

A: Marginal Cost is the additional cost incurred due to production of an additional unit of output.…

Q: Carefully explain what is happening in the market for a regular cup of coffee. Indicate the impact…

A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…

Q: The table below shows output for the country of Copernicus. Compute the nominal GDP. GDP data…

A: GDP is the market value of final goods and services produced by an economy under its domestic…

Q: How much time it take for an amount of Rs.450 to yield Rs.81 as interest at 4.5% per annum of simple…

A: A simple interest computes the interest on savings or loans without compounding. It is simple to…

Q: PROBLEM 7. At a certain interest rate compounded semiannually, P7,000 will amount to P30,000 after…

A: P = 5000. 7000 r = ? n1 = 10 n2 = 15 F1 = 30000 m = 2(compounding factor)

Q: Using the data, provide estimates of the following key National Accounting Aggregates a. Gross…

A: In National Income Accounting from Expenditure Method - National Income : GDP = C + I + ( G - T )  +…

Q: If a entrepreneur's accounting profit is positive but their economic profit is negative should they…

A: In a market, an entrepreneur enters and able to make accounting profit, it is the Sita when his…

Q: Provide three examples of public goods and services in your hometown. Explain how each is non-rival…

A: Generally, a public good or service that are available to all the members of a society by the…

Q: Two months after launching the 8 GB iPhone in 2007Applereduced its price from $599 to $399 Unit…

A: Price elasticity of demand The pricing of some items seems to be particularly inelastic, according…

Q: Consumer price index. The consumer price index com- pares the costs, c, of goods and services over…

A: The CPI is determined regarding a base year, which is utilized as a benchmark. The cost change…

Q: For each of the following situations solve for the amount of (1) consumer, (2) producer, and (3)…

A: Producer surplus is the total amount that a producer benefits from producing and selling a quantity…

Q: Draw a graph illustrating the determination of the equilibrium exchange rate between the South…

A: Exchange rate refers to the price of one currency in term of another currency. In other words, how…

Q: Given a Cobb Douglas production function, q = L0.45 K0.55, determine the Marginal Rate of Technical…

A: Given  Cobb-Douglas production function: q=L0.45K0.55          .....(1) We have to find the Marginal…

Q: The interaction of the NZ taxation and welfare (benefits) systems creates Select one: a.greater…

A: The marginal tax rate will be computed as amount of tax paid on for each extra dollar of income. The…

Q: Two of the most fundamental findings in welfare economics describe the relationship between markets…

A: The study of how the allocation of resources and goods affects social welfare is known as welfare…

Q: Why is economics often described as the science of constrained choice?

A: The economics is the science which deals with the allocation of these limited resources to satisfy…

Q: Research has found that poor people in rural, developing societies have many children, even when…

A: The poor people in rural societies in an economy have many children; and use of contraceptive…

Q: Q.3.3 Show how gross national product (GNI) can be derived from gross domestic product (GDP).

A: The term "gross domestic product" (GDP) usually refers to a monetary indicator that calculates the…

Q: A grove of mango trees is expected to yield P15,000 a year for 25 years after the tree come into…

A: Given  The annual expected yield from mango trees is P15000 and this yield continues up to 25 years…

Q: Draw a circular-flow diagram. Identify the parts of the model that correspond  to the flow of goods…

A: Introduction The circular flow of the diagram explains the relationship between households and…

Q: Consider the utility function u(x₁, x₂) = √√x₁+√√x₂. Prices are p₁, P2, and income is I. (a)…

A: Given  Utility function: u(x1,x2)=x1+x2                ..........(1) The price of good 1 is p1 and…

Q: A consumer has utility u(x₁, x2) = x₁ for two goods. The government subsidizes half of the cost of…

A: Given information Utility function U=X1X22 If a consumer buys 2 units or less than 2 units then…

Q: Fiscal drag is where Select one: a.there is a lag in government spending having any effect.…

A: The term fiscal is used to explain the government action or intervention in the market using its…

Q: Use the following table to answer questions about the hypothetical BYU Treats economy, which…

A: The term "inflation" refers to a measurement that is used to express the rise in the average price…

Q: 7. Numbers in the Romer model (II): Now suppose the parameters of the model take the following…

A: The usual value of all goods and services that is produced in a country during a certain time period…

Q: Consider your consumption of good Z. At the old price of $5, you bought 25 units. At the new price…

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Q: Question 9 Which of the following is true in the principal agent model?1. The agent has more…

A: The principal and agent problem is associated with the asymmetric information. The agent tends to…

Q: As the price of good X rises from $10 to $12, the quantity demanded of good Y rises from 100 to 114…

A: To determine how much demand for one commodity will change in response to a change in the price of…

Q: The fisher equation states that, approximately, Select one: O a. the nominal interest rate is equal…

A: A measure of the economy's rate of rising prices for goods and services is called inflation. In the…

Q: The properties of indifference curves can be described as :    a. Lower indifference curves are less…

A: A graphical representation of a combination of products that gives a consumer a similar level of…

Q: Suppose real GDP per capita in Sweden is 328,689 krona, and the price level in Sweden (measured…

A: To find the real GDP per capita ratio between two countries firstly we need adjust the GDP for…