Which of the following is a challenge of government setting a price floor? Which of the following is a challenge of government setting a price floor? Firms choosing to leave the market A risk of excess supply of the good A risk of excess demand for the good Prices falling below margin

Q: Suppose that under free trade a final good F has a price of $1,000 and that the prices of two…

A: Price of Good F = $1000 Given, Price of Input A = $300            Price of Input B  = $500 Tariff on…

Q: Foreign exchange rate O the price of one country's currency in terms of another country's currency O…

A: Foreign exchange rate refers to the rate at which foreign currencies are bought and sold.

Q: Problem 5 Based on the graph below, explain what would happen to the optimal level of abatement if…

A: The Optimal Level of Abatement refers to the costs incurred by the firms that are likely to cause…

Q: Choose the best answers using the circular flow model. The resource market provides the government…

A: The circular flow model for the market economy reflects interactions between households and firms in…

Q: From the following data Total orders (Q) 8 13 18 21 26 O Q=L+ 4K O Q=3L + 5K Which is the correct…

A:

Q: Which of the following statements is not true? O Unemployment is associated with less output in the…

A: Unemployment refers to a situation where people who are willing to work can not find a paid job.

Q: The most frequent argument used to support trade barriers is that they O protect domestic jobs O…

A: Trade barriers refer to policies such as import tariffs and quotas.

Q: An amortization of a debt is in a form of a gradient series of P10,000 on the first year, P9,500 on…

A: Given, Value at Year 1 = P10,000 Value at Year 2 = P9,500 Value at Year 3 = P9,000 Value at Year 4 =…

Q: If marginal cost is below average total cost, then average total cost    Question 10 options:   a)…

A: Marginal cost is the additional cost incurred when production is increased by one unit.

Q: 2) Ernesto is looking to purchase a new vehicle as his income has increased from $2,000 per month to…

A: Income elasticity of demand is defined as the percentage change in the quantity demanded for a good…

Q: n the ruins of an ancient Mesopotamian civilization, Dr. Jones has found what appears to be a…

A: GDP or Gross Domestic Product is the sum total of the market value of the final goods and services…

Q: Maria has $7.00 to spend on breakfast. Unfortunately, the snack bar in the building where she works…

A: Budget constraint shows the various combinations of price and quantity that can be purchased from…

Q: Use the formula: F = P (1 + i) 1. You wish to invest money now in order to have $600,000 after four…

A: Future value is the value of investment at the end of planning horizon.  Present value is the value…

Q: Free Traders O limit placed on the quantities of a product that can be imported O people who favor…

A: There are two types of group of people, one who favor trade barriers and the other who are against…

Q: a. What are Caroline’s explicit and implicit costs?  b. What is Caroline’s accounting profit?  What…

A: (Solving the first question).  Answer 1:  a. Explicit costs are those costs which are required to…

Q: Which of the following is most likely to be a monopoly? local fast-food restaurant local electricity…

A: Monopoly is known as a market structure in which only one seller exists who has complete market…

Q: Suppose the demand curve for a product is given by Q=10-2P+ Ps, where Pis the price of the product…

A: Information Given :  Q = 10 -2P + PsPs =$2P =$1 for  part (a)P =$2 for part (b)

Q: Assume the price of good Y increases by 2% and the cross price elasticity of demand with good X is…

A: Cross price elasticity (CPE) measures the percentage change in quantity of one good due to…

Q: A computer production facility has a daily demand rate of 6 and a daily production rate of 20. Set…

A: EPQ(Economic production quantity) is an optimum quantity for a good/item that is produced by the…

Q: Theodore is considering a 1-year training program, which charges $20,000 in tuition, to learn how to…

A: Present worth estimate the effect of time on money. PW is what a sum of money or a series of cash…

Q: Briefly (in a few sentences) discuss wheher and how advancements in smart phones (plus improvements…

A: Smartphones and internet has helped the individuals to cope up with current needs of job market.…

Q: 4) Jerry, an addict of Jamba Juice finds out about his 3% increase in pay, so he plans on increasing…

A: Cross Price Elasticity of demand measures the percentage change in quantity demanded of a good or…

Q: Let's suppose you have $1 million to invest.  You are considering to invest in UK first, then…

A: Covered interest rate arbitrage is the practice of utilizing favorable interest rate differentials…

Q: Over the past few year's consumer tastes and the number of buyers in the market for a game called…

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

Q: Question 13 Rhodri has a lottery ticket which will pay £80 with probability 0.5 and zero otherwise.…

A: Risk premium of risky consumption bundle is difference between expected consumption and certainty…

Q: Q2. Consider the simple Keynesian model of income Determination Ct = Bo + B₁Yt + Me 0<B₁<1 Y₁ = C₁ +…

A: First of all, we have to know the term simultaneous equation model. Simultaneous equation model is a…

Q: You produce shoes (Q) with labor (L) and capital (K). The production process is as so: Q = 400L -…

A: Production Function: A production function represents the level of output produced given the inputs…

Q: The average total cost of baking 5 cookies is 80 cents and the average total cost of baking 6…

A: Average total cost will be calculated as the sum total of all costs of production divided by the…

Q: The following table shows cost data for a perfectly competitive firm. Output 1 2 3 4 5 6 7 8 9 10…

A: Abbreviations;- AFC = Average Fixed Cost AVC = Average Variable Cost ATC = Average Total Cost MC =…

Q: Goods Grapes Textiles Spain 8 4 Note: figures are hours of labor per unit of output France 15 5

A: Comparative advantage occurs when the nation involved in the trade are not holding an absolute…

Q: Suppose the price level reflects the number of dollars needed to buy a basket of goods containing…

A: Inflation happens when prices in an economy rise and/or the purchasing power of money declines.…

Q: You have bought a car for $50,000. You were so excited. However, you then found out that the car you…

A: Formula for the future value of an asset is given as:  F= P(1-d)t F: future value of the assetP :…

Q: If the firms in a monopolistically competitive market are earning economic profits in the short run,…

A: In a monopolistically competitive market the difference among the short run and the long run is that…

Q: Q1. Consider a monopolist which produces two different products, each having the following demand…

A: Demand functions faced by monopoly for two products - q1 = 14 - p1/4  =&gt;  p1 = 56 - 4q1  q2 = 24…

Q: One hypothesis for the lack of success of the rapid fiscal expansion in Japan financed by increased…

A: In 1990s, Japan government use the debt financing (i.e., financing government expenditure through…

Q: The economy's AS curve will shift downward in the short run if there is: A. an increase in the cost…

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

Q: If X follows a normal distribution with µ = 30 and σ = 4, what is P(X ≤27)? Answer Choices: a.…

A: X follows a normal distribution with mean (µ) equals to 30 and standard deviation (σ) equals to 4…

Q: Trade Deficit O the price of one country's currency in terms of another country's currency O occurs…

A: Exported products are the goods sold by domestic producers to foreign residents. Imported products…

Q: The demand curve facing a firm operating under monopoly is given by; P = 170 – 5Q The cost…

A: "Monopoly is a market structure in which there exists only one single firm. A monopolist is a price…

Q: The daily demand for pizzas is where P is the price of a pizza. The daily costs for a pizza company…

A: Demand function; Qd = 780 - 25P25P = 780 - QP = 31.2 - Q/25 Fixed cost, FC = $50Variable cost, VC =…

Q: Which ethical issues may arise by speculating with the price of rice at the commodities market?…

A: Commodities markets are known for the trade of products or output. Rice is also a part of the…

Q: Payoff Matrix Yellow's Output Strategy Low High White's Output Strategy Low High $120 $120 $50 $160…

A: A payoff matrix shows the values/ payoffs earned when a particular strategy is choosen.    Nash…

Q: Suppose a consumer seeks to maximize the utility function U (x, y) = (x+2) (y + 1), where and y…

A: Given  Consumer utility function: U(x,y)=x+2y+1            ...(1) Price of goods x and y are px and…

Q: A good's demand is given by: P = 286 - 3Q. At P = 197, the point price elasticity is: Enter as a…

A: The measurement of change in the quantity demanded of a good owing to changes in the determinants of…

Q: Question 13 Rhodri has a lottery ticket which will pay £80 with probability 0.5 and zero otherwise.…

A: Risk premium : Risk premium is the amount that a person is willing to pay to avoid the risk.

Q: A fast food chain in the United States, Simpson’s Kitchen, got its supply of chicken from a local…

A: Environmental economics refers to the study of the cost-effective allocation, use, and protection of…

Q: Problem 4: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three…

A: Interest rate is the amount charged over and above the principal amount by the lender from the…

Q: (1) Specialization increases productivity which results in of a De creasing revenue b increa song…

A: Specialization enhances the productivity i.e. the ratio of inputs to outputs. Specialization…

Q: If Country A's opportunity cost for produc 1 pound of cashews is 5 pounds of coffee, and Country B's…

A: The movement of products, services, capital, and technology between nations is referred to as…

Q: Could I have a graphical representation of question c?

A: In this case, we have to know the term private savings, public savings and national savings. Private…