Which of the following is included into the income measure of the US GDP? O salary salary of Maria, a citizen of Mexico, working legally at a dental office in Queens salary of Jane, a US citizen accountant working in Korea Oprofits of Randy the Illegal Drug-Dealer amount of a cash gift an ESC student receives from parents the value of a new garage Sam the School Teacher built himself in his back yard

Q: Proportional

A: If low-income families pay 10% of their income in taxes while high-income families pay 20% of their…

Q: A company earns $18 annually. You discount its future profits by 2% a year due to your impatience…

A: Discount rate is the interest rate used to calculate the present value of future cash flows. It…

Q: Explain how travel, trade, and other aspects of globalization contribute to health, disease, and…

A: Globalization is the process of tying and connecting the world through trade and technology. The…

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A: The term unemployment implies a condition where a person actively searches for employment but is not…

Q: Consider a firm that estimates that its price elasticity of demand equals -1.5. Price equals $36 and…

A: Elasticity of demand measures the quantitative change in the demand in response to the change in the…

Q: Is it appropriate for Fiji to undertake Fiscal consolidation?  Justify your opinion.

A: Fiscal consolidation refers to a set of policies or measures implemented by a government to reduce…

Q: Let's say the autonomous Investment = $5,000, autonomous consumption = $12000, autonomous government…

A: Autonomous investment refers to expenditures made by the government or private companies in economic…

Q: Adding product differentiation to the Bertrand model has which of the following consequences: O It…

A: The Bertrand model is a simple economic model used to analyze competition between firms that produce…

Q: The classical dichotomy is the separation of real and nominal variables. The following questions…

A: Given information: Lucia spends all of her money on magazines and doughnuts.  In 2013 she earned $15…

Q: The single most important element in managerial economics is the microeconomic theory of the firm.…

A: In essence, managerial economics is the act of applying economic theory and methodology to business…

Q: Consider an industry with identical firms. Suppose the cost function of firm i, i=1,...,n, is given…

A: First order condition for profit maximization dπdq=0where π is profit

Q: You have been tasked with developing a research report based on an economy of your choice anywhere…

A: Economic fundamentals are the core ideas and elements that underpin how an economy operates. These…

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A: The demand function is the mathematical relationship between the quantity demanded and the price. It…

Q: The phrase "the greatest good for the greatest number" embodies which of the following concepts…

A: The greatest good for greatest number means  those actions should be preferred that benefit the more…

Q: Scenario: Aggregate banking statistics show that collectively the banks of CountryA hold $300…

A: Given:Required reserves = $300 million Excess reserves = $75 million Deposits = $7,500 million…

Q: ADVERSE SELECTION Somet Health Insurance Company wants to sell a health insurance product for $700…

A: Adverse selection is likely to occur when the sellers possess more information than the buyers, or…

Q: Answer in detail: How the development of education system contribute to the economic development?

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Q: For all questions be sure to explain your answers and to use graphs whenever appropriate. 1.…

A: a. If there is a fall in world price of shoes then, there would be increase in production of the…

Q: If the Cross Elasticity of demand between two goods is Negative, then the two goods are goods.…

A: The elasticity of demand (E) depicts the responsiveness of the quantity demanded (Qd) of a good…

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A: Monopolistic competition is a type of market structure in which many firms compete by selling…

Q: 4 Jill and Jack both have two pails that can be used to carry water down from a hill. Each makes…

A: Game theory is a branch of mathematics that studies decision-making in situations where two or more…

Q: Suppose government purchases increase by billion dollars, and as a result, real GDP incre by 15…

A: The multiplier is a measure of how much the overall income will increase for each dollar of…

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A: MPC is the marginal propensity to consume.  Multiplier is calculated using the following formula :-…

Q: Argentina can produce either 50 bushels of cherries or 25 bushels of apples using all of its…

A: A country, person, or business that can produce goods or services at a lower opportunity cost than…

Q: The table shows the demand and supply schedules for raspberries. Suppose that the government…

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Q: A two-person game in which each person has access to only two possible strategies will have at most…

A: Nash equilibrium is a concept in game theory that describes a state in which each player in a game…

Q: Which of the following best describes health care expenditure based on the level of education?…

A: Health care expenditure includes all expenditures for the provision of health services, nutrition…

Q: PRICE (Dollars per unit) 140 Region Between W and X Between Y and Z Between X and Y QUANTITY (Units)…

A: Elasticity measures the percentage change in quantity due to percentage change in price.  The demand…

Q: Suppose that you calculate the income elasticity of demand for ramen noodles to be 4. Based on this,…

A: Income elasticity is calculated as the percentage change in quantity divided by the percentage…

Q: 2. You are working as the chief economist for the Ministry of Economy in Peru. For each of the…

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Q: Cyclical unemployment is O when workers stop looking for jobs because they feel no jobs are…

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Q: Suppose that demand is perfectly elastic and supply is a basic upward sloping curve (so neither…

A: The demand curve is the graphical representation of the relationship between the quantity demanded…

Q: for th below two machines and based on AW analysis which machine we should select? MARR=10% Machine…

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

Q: Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household…

A: Aggregate demand: Aggregate demand signifies the total value of all the spending made within the…

Q: Derive the Solow model with human capital and discuss the structural policies predicted by the…

A: Capital is the term used for anything that gives benefit. The machinery and equipment that create…

Q: Explain the characteristics of mixed economy???

A: A Mixed economy framework is a mix of both entrepreneur and communist goals permitting security of…

Q: Cost Schedule for Firm X: Output Total Fixed Cost Quantity 0 1 2 3 4 5 $21,500 $20,000 $1,500 $240…

A: Marginal product is the change in total product due to an additional input used.  Marginal cost is…

Q: Consider a perfectly competitive market where the demand for the good is given by Q=769-5p, where Q…

A: The demand function is the mathematical relationship between the quantity demanded and the price. It…

Q: Hansel has been making a cuckoo wristwatch, which he sells over the web.  Customers are willing to…

A: Optimal quality is the level of quality that increases customers' satisfaction and firms' profit. To…

Q: Use the graph below and the following information to answer the next question(s). The world price of…

A: Producer surplus is the difference between the price actually received and the minimum willingness…

Q: Ralph and Graham have identical utility functions, U(x, y) = x² + y². There are 10 units of x and 10…

A: Given that; Roger and Gordon have identical utility functions, a fair allocation would be one in…

Q: How much money is in the account now

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Q: Neuroeconomics attributes time-inconsistency to high levels of the oxytocin hormone the…

A: Neuroeconomics is an interdisciplinary field that studies the neural and psychological processes…

Q: You have been tasked with developing a research report based on an economy of your choice anywhere…

A: A society's organization of the production, supply, and consumption of products and services is…

Q: In the line of corruption and scams, explain the three layers of Money laundering. What is…

A: The act of making unlawfully obtained monies look legitimate is known as money laundering. It…

Q: How can a tax cut increase investment, and what is the impact on the economy?

A: A tax is a compulsory financial charge or levy imposed by a government on individuals, businesses,…

Q: Assume a monopolist faces the demand schedule given below and a constant marginal cost of $2 for…

A: In Monopoly, one seller has complete control over the market. The firm sets prices. By producing…

Q: Which of the following is a strong economic factor in the existence of mid for medieval cities?…

A: Economic factors refer to the various conditions and elements that impact the economic performance…

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A: Introduction  According to behavioral economics, willing to pay refers to the highest price at or…

Q: Assume that the total productivity in our country decreases (a negative shock to the production…

A: The amount of output produced for every unit of input is referred to as productivity. The…