What are the functions and limitations of an economic model?

Q: Suppose, a country X has a GDP level of 4, 50,000 and a growth rate of 10% in 2007(calculated at the...

A: Given Information: Initial GDP in 2007 = 450000 A principle amount will be double in few years depen...

Q: Tremendous decline has been observed in GDP growth rate of Pakistan identify and explain the reason ...

A: Pakistan's economy is at the 22nd rank in the world in terms of Purchasing Power Parity(PPP) and 42n...

Q: When there is a decrase in the price of Head and Shoulders shampoos, demand curve will shift to the ...

A: Demand curve is a graph depicting the relationship between quantity of that commodity being demanded...

Q: Explain how a policymaker who is considering how to raise tax revenues from fuel and vehicles should...

A: The elasticity of demand is a concept which measures the responsiveness of the change in the quantit...

Q: If the supply function for a commodity is P=Q^2+7Q +16 in the demand function is P= -3q^2+5Q +436, f...

A: The supply and demand function is given as follows:

Q: How low would the market price haveto fall before the firm decided to produce nothing?

A: During production, firm incurs various costs. Some costs are fixed while some are variable. Fixed co...

Q: A foreign exchange intervention is: a. Synonymous with a fixed exchange rate b. The use of public st...

A: Exchange rate: - the exchange rate is the rate at which the currency of one country can be exchanged...

Q: Define GDP – that is national output. (a) Now explain each of the key elements that you have include...

A: Gross Domestic Product (GDP) refers to the total goods and services domestically produced in the eco...

Q: Question 5: We must draw on an existing body of knowledge in order to develop new theoretical approa...

A: Media economy is a concept in which the economist studies theories and concept of the media industry...

Q: Write a note on easy writing and discuss types of eassys

A: Essay writing would mean simple writing Writing that would include systematic paragraph writing.Divi...

Q: Consider two firms that produce a single output good,y, using two inputs :Capital, K , and labor, L,...

A: Profit maximization is the process that determines the prices, input, and output of the company to a...

Q: Market research has revealed the following information about the market for washing machines: The de...

A: Equilibrium is the state of rest, that is, from the point of equilibrium no party have any incentive...

Q: Demand for Algida Ice Cream:%change in price:+10%%change in quantity:-12%According to the changes ab...

A: The elasticity for a product like icecream indicates the responsiveness of the consumes to an altera...

Q: A machine. purchased for $50,000, has a depreciable life of five years. It willhave an expected salv...

A: Depreciation: - depreciation is a process of a systematic allocation of the cost of an asset over it...

Q: In quoting exchange rates: a. One should always quote these as units of foreign currency over a unit...

A: A direct quotation is a foreign exchange rate, in which the value of a foreign currency is calculate...

Q: Income elasticity:  Judy’s income has increased from $10,000 to $12,000. Judy increased her demand f...

A: Income Elasticity Of demand = (% Change in Demand)/(% Change in Income).......(1)

Q: Consider total cost and total revenue given in the following table.                                ...

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process. Mar...

Q: a) Determine the magnitude of the labour force in the economy?b) What is the Unemployment Rate for p...

A: Since you have asked multiple questions we will solve the first question for you. If you want any sp...

Q: A foreign exchange intervention is: Answer a. Synonymous with a fixed exchange rate b. The use of pu...

A: Intervention requires funds such as U.S. dollars and Japanese yen as foreign exchange intervention i...

Q: In the long run, technological progress Answer and increases in the money supply both make the price...

A: Since you have asked multiple questions, we will solve first question for you. If you want any speci...

Q: Claude James, a salesman, needs a new car for business use. He expects to be promoted to a superviso...

A: To get the correct option and the answer, it is necessary to ascertain the worth in each scenario, w...

Q: The theory of purchasing power parity says: a. The real exchange rate is always greater than one b. ...

A:   Meaning of Purchasing Power Parity (PPP): The term purchasing power parity refers to the situation...

Q: Discuss costs and benefits of job search.

A: Unemployment refers to a situation when employable workers are unable to seek a job at the existing ...

Q: Perfectly competitive firms are price takers because all small firms must take the price set by the ...

A: Perfectly competitive firms are price takers because all small firms must take the price set by the ...

Q: Which of the following would shift the supply eurve for a commodity to the right? An increase in the...

A: Supply is the amount of output that producers or sellers are willing to sell in the market at given ...

Q: The following table gives total output or total product as a function of labor units used.          ...

A: Labour average product marginal product Total Product 0 0 0 0 1 30 30 30 ...

Q: Central banks can increase or decrease the supply of money (M1) in three ways: open market operation...

A: Central bank is referred as the apex bank for managing the financial stability of the economy, imple...

Q: What did the Great Compromise establish to win support from both those who favored the New Jersey Pl...

A: The Connecticut Compromise established a bicameral legislature with the U.S. House of Representative...

Q: Which do you think has a greater effect on the CPI:a 10 percent increase in the price of chicken or ...

A: The Consumer price index (CPI) is a metric examining the weighted average of consumer products and s...

Q: What are three reasons that a government might want to intervene in markets?

A: Government interference is government legislative action that aims to alter the decisions taken rega...

Q: All else equal, when output is low, the Fed favors a higher interest rate than it would in a high- o...

A: The Federal Reserve Bank is the central bank of the USA and its monetary authority. It is responsibl...

Q: Explain briefly what is it:  Repurchase Agreements (REPO) Open Market Operations (OMO)

A: Financial instruments: These are monetary contracts between two parties.

Q: True/False/Uncertain Whether the payroll tax is assessed on workers or firms makes a difference...

A: 1.

Q: Explain what the consumption function shows, and describe what is held constant along the consumptio...

A: Consumption function represents the relation between the consumption and income of the individuals, ...

Q: Q 2. (A) The monthly supply of desktop personal computers is given by the equation QS = 15,000 + 43....

A: The price elasticity of supply is that the measure of the responsiveness in quantity supplied to a c...

Q: Question 10: Doctrow uses the following terms to describe; Someone who puts capital into production ...

A: Production: It is a cycle of consolidating different material information sources and unimportant co...

Q: What assumptions about a rival’s response to price changes underlie the kinked-demand curve for olig...

A: Paul M Sweezy introduced the kinked demand curve model to explain price rigidity in oligopoly. An ol...

Q: Consider the inverse demand and supply for dates to be given by P= 3o-3Qd and P= 6+ Qs. The total su...

A: Consumer surplus is the difference between the maximum price the consumer is willing to pay and the ...

Q: Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies i...

A: A person has an absolute advantage(AA) in a good if that person can produce that good in a greater q...

Q: In a purely competitive labor market (a), market labor supply S and market labor demand D determine ...

A: In the labour market, the firms are the buyers of labour and the workers are the sellers. The demand...

Q: Quantity Price TR TC MR MC Php 3.00 Php 10.00 10 Php 3.00 Php 25 15 Php 3.00 Php 30 20 Php 3.00 Php ...

A: The total revenue of the firm is calculated as follows: TR = PQ The marginal revenue is calculated a...

Q: Assume that demand and supply for a product over a period of time, respectively, are: Qdx = 15 - 0.5...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: A firm's long run cost is the cost of production when the firm Select one calculates its cost at lea...

A: In the long run, all the factors of production are variable, that is, the firm can even alter the si...

Q: You have been appointed as an economic advisor to the principle of Bright Sparks College, a firm ope...

A: Income: It refers to the pay of the people from which the people buy goods and services. The income ...

Q: Discuss the major barriers to entry into an industry. Explain how each barrier can foster either mon...

A: Barriers to entry refers to the restriction on entry of a new firm, monopoly or oligopoly are two ma...

Q: The idea that the demand for autoworkers stems from the demand for automobiles is a )     output d...

A: The idea that the demand for autoworkers stems from the demand for automobiles is the idea of derive...

Q: Illustrate the trade-off between administrators and medical staff. Explain the economic principles i...

A: The trade off between administrators and medical staff can be illustrated with the help of productio...

Q: How do scarce resources create barriers to entry?

A: Barriers to entry refer to the obstacles that makes it difficult for new firms to enter an industry....

Q: Describe Benchmarking Overview?

A: For a benchmarking process,there is no single set of indicators or right set of peers against which ...