Why is credit so important to our economy? Can the economy function without credit

Q: Mary buys cell-phone services from a company that charges a minimum of $25 per month. For that $25,…

A: Fixed Cost For first 100 minutes=$25 It is the fixed cost that Mary has to incur irrespective of the…

Q: 2. The following table gives information about the quantity of glasses of lemonade sold on sunny and…

A:

Q: A consumer’s utility function is given by:  U(X1,X2)= X(α),X(1-α)   where A>0,   0<α<1  The…

A: Utility function:  u(x1, x2) = x1α x21-αThe budget equation: P1 x1 + P2 x2 = M

Q: 43

A: The investment in the goods or services or financial assets or companies outside the domestic…

Q: You borrowed P5,000 from a bank and agreed to pay at the end of 9 months. The bank discounted the…

A: The rate tells you just how much interest you'll make or pay on a loan. Rate is the percentage that…

Q: The coefficient of income in a regression of the quantity demanded of a commodity on price, income…

A: The term "income elasticity of demand" describes the degree to which the quantity of a specific item…

Q: 10.Before starring in Iron Man, Robert Downey Jr. had appeared in 45 movies that grossed an average…

A: 10. a)  Robert Downey Jr. was partly responsible for Iron Man's popularity, he now requires a higher…

Q: 2. The graph below is set of hypothetical production possibilities for a nation. Consumption goods 7…

A: Production possibility curve shows the combination of production of two different goods by the using…

Q: c) Explain why it is inefficient to give each firm an equal number of pollution per mits (if they…

A: Given, Each of the two companies, X and Y, emits 80 units of pollution. The government wishes to…

Q: Explain any three weaknesses of IDZs that led to the establishment of SEZs

A: An Industrial Development Zone (IDZ) is a carefully designed modern bequest connected to a global…

Q: How does agriculture contribute towards transfer of capital

A: A capital transfer requires disposal or acquisition of an asset or assets by minimum one of the…

Q: X4

A: In a market, decreasing cost industry refers to the one that has the ability o reduce its average…

Q: What is the value of the exercise price? $

A: An option refers to a contractual agreement that gives the buyer the right but not the obligation to…

Q: according to the scale and substitution view of money, identify the factors that causes individual…

A: Money  People can get the things they need to survive thanks to money, which serves as a medium of…

Q: Table 2 summarizes John's Total Benefit from consumption of pizza per month (measured in dollars).…

A: Marginal benefits = It measures the change in the total benefits if consumer consumes one additional…

Q: Explain the U.S.'s growing population. How will the changes affect the difficulties and obstructions…

A: The world's population is growing every day. Various nations across the world are dealing with…

Q: In year 1 the average price of X is $10, and in year 2 the average price of X is $23. If consumers…

A: The law of supply is a basic rule of economic theory which implies that keeping other elements…

Q: On a diagram of a production possibilities frontier, economic decline (negative growth) is…

A: Production possibility curve is defined as the combinations of different outputs with given amount…

Q: Given a US firm’s average revenue function: AR = 36 – 1.5Q     Calculate the price and total…

A: Introduction Here we have given average revenue of a firm. As we know that when average revenue is…

Q: Given the production function y=(ip - Kp )1/p , what is the technical rate of substitution, the…

A: Introduction Production function An equation in economics that describes the relationship between…

Q: An increase in interest rates in New Zealand all other things constant would Select one: a.raise the…

A: Currency exchange rate is the value of one country's currency with respect to other currency.

Q: Required: i) Under a fixed exchange rate, a continuous increase in domestic credit will finally…

A:

Q: Social security payments are a form of _____ and available to ____

A: Benefits from Social Security are payments paid to eligible retirees, persons with disabilities, as…

Q: Question 1) Dave is an expected utility maximizer and his von Neumann-Morgenstern utility function…

A: Let us simplify the utility function - U(W) = 0.8(w)1/3  Initial Wealth = 27000

Q: Why can't an economy generate its own aggregate demand when needed?

A: The total number of commodities and services that an organization anticipates will be bought…

Q: In one hour, Sue can produce 70 caps or 21 jackets and Tessa can produce 50 caps or 25 jackets. Who…

A: Opportunity cost is the benefit lost while making a different decision. You must compare the…

Q: You have the following annual data for the New Zealand economy ($bn): GDP (Y)…

A: ECONOMIC DATA OF NEW ZEALAND: AMOUNT ($bn): GDP (Y) 190 Gross National Disposable Income (Yd)…

Q: Explain the IS schedule, and how the IS curve is derived in a Closed Economy.

A: The IS bend is the timetable of blends of the interest rate and the degree of income to such an…

Q: 3. A firm has a production function, q = k0.5 10.5, where q is daily output (in kilogram) and I and…

A: We are given:  Production function: Q = k0.5 l0.5k = 40 (as it is short run)Per unit cost of capital…

Q: F7

A: We know that Final goods are goods that do not need any further processing. Final goods are produced…

Q: The following information is available for Product 7TY which EOQ is of 125 kg. The maximum usage…

A: The maximum level of inventory is the maximum quantity of material which we should keep in store as…

Q: DEMAND IN-CLASS WORKSHEET 3 This question examines the market for apples. You will identify a demand…

A: Introduction Here we will examines the market of apples when we have given a demand function and…

Q: In 2012 the nominal value for household spending on clothing and shoes was equal to $5013m and in…

A: To monitor inflation, a nation's prices for a variety of products and services are recorded in the…

Q: Assume two consumers with utility functions of the form UX (x₁, x₂) = x¹/²x¹/² and UY (3₁, 32) =…

A: Given information Utility function for consumer X U=X10.5X20.5 Utility function for consumer Y…

Q: Refer to Table 2-3. Ming faces the production of banjos and harps. A increasing opportunity costs in

A: Production possibiltiy forntier depicts the combination of two goods that can be produced by using…

Q: In the two-entity circular flow, are on the receiving end of payments for goods and services.

A: Circular flow of income represents the flow of money, goods and services among the major section of…

Q: It is often observed that when house prices are falling, houses remain on the market longer than…

A: The endowment effect depicts a situation in which an individual sets a higher value on an object…

Q: The graph above shows the graph of 2 lines (W and V). The numbers on Y-axis and X-axis are…

A: C + E forms the triangle so to find the area of C+E we can find the area of the triangle formed.…

Q: 5. Alphadelphia and Omegemetro are negotiating a trade agreement. The table below shows the…

A: The terms of trade is the rate at which two trading partners agree to exchange two goods. It is the…

Q: What determines the market area of a shopping centre?

A: A market area is a surface over which a demand or supply presented at a particular area is…

Q: 5. Correcting for negative externalities - Regulation versus tradable permits Imagine the government…

A: Government-issued permits known as "tradable pollution permits" allow businesses to produce up to a…

Q: Clearly distinguish between expansionary and contractionary fiscal policy.

A: Introduction Fiscal Policy Fiscal policy is controlled by the central government of the country.…

Q: Compare and contrast the shapes of the loss distributions for market, credit and operational risk

A: It's virtually accurate to say that taking risks is what bank management is all about. Financial…

Q: Pizza subs S The producer of pizza is able to get tomatoes for half the regular price. What will be…

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: A home appraisal company would like to develop a regression model that would predict the selling…

A: Given information: A regression model is given to predict the selling price of a house based on the…

Q: 2. A firm combines three inputs (21, 22, 23) to produce output y according to production function: ƒ…

A: We are going to use marginal rate of transformation method to answer this question.

Q: n't skip. 4 Suppose that a bank has a leverage ratio of 25. In this case, the bank will be…

A: Leverage ratio is important for banks as it helps them keep a record of the capital that is…

Q: 6.- Andrew Thomas, a sandwich vendor at Hard Rock Cafe, created this table with the different…

A: Business firms use decision analysis as a technique in operation management to make informed…

Q: H8

A: Inflation rate = 3.5%  Number of years

Q: Trade costs affect the following EXCEPT O how a firm responds to competition in a market. O how a…

A: Trade costs include transaction costs, transportation costs, and other costs that are incurred when…