Define real GDP and nominal GDP. Which is a better measure of economic well-being? Why?

Q: Draw cobweb model for 1. Fluctuation of market price 2. cobweb model for market economy graph for gi...

A: Cobweb theory states that fluctuations in price could in turn lead to fluctuations in supply causing...

Q: Suppose that your demand schedule for dvds is as follows: price quantity demanded (income = $10,000)...

A: price quantity demand ( income $10,000) quantity demand( income $ 12,000) 8 40 50 10 32 45 12 ...

Q: 12. Assuming the PPF is shifting from PPFo to PPFn, which of the following explains the cause or cau...

A: The reason for the outward shift of the PPF is the increase in technology or the increase in resourc...

Q: 13. Assuming the PPF is shifting from PPFo to PPFn, which of the following explains the cause or cau...

A: Production possibility frontier shows the different optimum combinations of goods that can be produc...

Q: Imagine a country XYZ that produces only two goods—chairs and tables. Together, the chairs and table...

A: The production possibilities curve shows the graphical tradeoff between different combinations of tw...

Q: Once a firm identifies all the macro and micro factors that deserve consideration in the country ris...

A: Country risk refers to the political and economic risks of a country that might affect its businesse...

Q: 13. The conditions necessary for international exchange to be mutually beneficial include:     a...

A: An exchange is said to be mutually beneficial when parties to the exchange undertake the exchange af...

Q: The variable cost to make a certain product is $71 per unit. Research indicates that the lowest pric...

A: Given, VC = $71 per unit Lowest price = $156

Q: “The hotter it gets, the more water people drink.” This statement implies that the relationship betw...

A: This relationship between temperature and water consumption shows direct relationship. 

Q: 1.Given the diversity of developing countries, do you think that there could ever be a single, unifi...

A: In its own nature and thinking, each developing nation is distinct. Their creation mechanism and eff...

Q: Saved Help Save & Suppose Marcus eats nothing but burritos for dinner. He buys 30 burritos each mont...

A: Original Price of burritos = $6 New price of Burritos = $5.75 Income he can spend on Burritos = $180...

Q: When Ani’s income changes from $400 to $1000, her saving changes from $100 to $580. Ani’s Marginal P...

A: The Keynesian consumption function shows the relationship between consumption expenditure and dispos...

Q: You are the country manager of a firm that produces and markets a generic type of soft drink in a co...

A: Above graph shows the changes that the generic drinks supplier will have to go through in the market...

Q: 04. Which of the following statements about point C is TRUE?     a) production of both X and Y...

A: Trade off in PPF can take place if PPF lies inside. Therefore here trade off between good x and good...

Q: When Erica’s income changes from $1000 to $1500, her consumption changes from $700 to $1100. Erica’s...

A: The marginal propensity to consume (mpc) is the extra consumer spending arising from an increase in ...

Q: 2018 2019 Price $4.50 $18 $2.20 2020 Price Qty Qty Price $4 Qty 600 Butter 500 520 $5.00 Clothes $20...

A: Real GDP is the gross domestic product of an economy, which is adjusted for inflation. To find the p...

Q: If the MPC is .85 and the APC is.75, the MPS is Impossible to determine. O .25. O .15. O .75. .85.

A: Marginal Propensity to save refers to the income's portion that an individual saves rather than spen...

Q: Countries that are at the technological frontier must __________ to increase living standards and th...

A: Countries that develop new technologies are placed at the top of technological frontier. 

Q: function be given by p = 100 – 0.0002q which generates a marginal revenue function of MR = 100 – 0.0...

A: A monopoly is the sole producer of a good in the market thus having maximum market power thus will a...

Q: A point lying inside (under) a production possibilities frontier indicates that _________.A. the eco...

A: A production possibility frontier shows the combinations of goods which could be produced with the c...

Q: Suppose there are three apples A,B and C being sold and consumed. The demand and supply equations fo...

A:

Q: Which of the following will cause a movement when looking at an individual’s demand curve?      ...

A: While a change in price causes a movement along the existing demand curve, a change in non-price det...

Q: Explain any four factors affecting price elasticity demand.

A: Price elasticity of demand (PED) shows the connection between price and amount demanded and gives an...

Q: Tax System A Marginal Tax Rate Tax Sy Income Range 0- $20,000 $20,001-$40,000 $40,001 - $80,000 $80,...

A: Average tax rate is the share of income a tax payer pay in taxes. A taxpayer's marginal tax rate is ...

Q: Identify the point or points for which the following is true: To produce more of beer, some of pizza...

A: Answer: Introduction: Production possibility frontier: it refers to the curve that shows the differe...

Q: I have constructed a Bertrand game (competition in prices) and presented you with the reaction funct...

A: Answer a) The diagram despite the reaction curves for firm 1 and firm2. p1 = 12.5 + p2/4 p2 = 5/2 + ...

Q: How does a tax on labor income influence the equilibrium quantity of employment? and How does the ta...

A: Tax refers to the compulsory payment that imposed by the government on consumer, individual people w...

Q: The following graph shows the market for pizzas in New York City, where there are over a thousand pi...

A: The demand and supply mechanisms play an important role in an economy as the business firms and the ...

Q: Why do we subtract import spending from total expenditures while calculating the GDP?

A: Imports are the goods and services that are bought from the rest of the countries to our country. Th...

Q: What effect will each of the following have on the supply of auto tires?  Microeconomics chapter 3  ...

A: Supply curve shift due to change in various factor other than price. Increase or decrease in factors...

Q: Consider the Colombian market for soybeans. The following graph shows the domestic demand and domest...

A: Consumer surplus is the net gain to an individual buyer from purchasing of a good. It is equal to th...

Q: The following graph shows the labor market in the fast-food industry in the fictional town of Supers...

A:

Q: 26. What are the implied relative price of wine in international trade?     a) 1/3 yard/bottle...

A: We are going to understand the opportunity cost and relative price to solve this problem.

Q: Which of the following refers to an economy which most economic decisions are made by the government...

A: While in laissez-faire free markets (market-oriented) economies, demand and supply are determined by...

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

A: Disposable income is the income that available after spending, investing, and savings.

Q: The following graph shows the annual market for Florida oranges, which are sold in units of 90-pound...

A: The equilibrium price and equilibrium quantity is determined where price is equal to supply. 

Q: A tax on the sellers of cheese           increases the size of the cheese market.         ...

A: Tax incidence refers to the burden of tax on buyers and sellers. The proportion of burden depends on...

Q: using an 11% annual interest rate to decide if they should buy Truck A or Truck B. Which truck is mo...

A: We are going to analyse the problem by solving for present worth , Annual cost etc.

Q: Use two diagrams to explain the effects of the determinants of aggregate demand on real GDP in a nat...

A: 1st Determinant:Consumption Spending: This determinant is directly linked with the GDP level. An inc...

Q: Define demand

A: Demand can be defined theoretically, and there is a law of demand in economics that is defined in re...

Q: Briefly explain the first, second , and third degree price discrimination

A: Price discrimination(P.D) is a strategy where different prices are charged for different customers f...

Q: You have following information about goods x and y  i Income elasticity of demand for good x= -3  ii...

A: The negative symbol specifies that quantity demanded is inversely proportional to income, i.e. a ris...

Q: The world price can be higher than the domestic price; this generates exports rather than imports. S...

A: Part I) Compared to a situation without any trade (i.e. without exports), consumer surplus is larger...

Q: Suppose that C = a + bY, where C = consumption, a = consumption at zero income, b = slope, and Y = i...

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

Q: If the consumption function in the economy is given as C = 200 + 0.3(Yd) what will be the total cons...

A: Consumption function, in economics, the relationship between consumer spending and the various facto...

Q: The following graph shows the labor market in the fast-food industry in the fictional town of Supers...

A: The demand for labor refers to the total amount of labor which the firms want to hire at the given w...

Q: Consider the following goods and services. Which are the most likely to be produced in a perfectly c...

A: Perfectly competitive market: It has the greatest possible level of competition. 

Q: If the price is below the equilibrium level, there is a _____________and prices will _____________. ...

A: The point at which demand and supply intersect gives the equilibrium price and quantity.

Q: Hi I am having some trouble with the following questions 6 and these three subquestions can you plea...

A: We are going to study the consumption leisure trade off to answer this question.

Q: 180.5 181.7 180.9 181.6 182.6 181.6181.3 182.1 182.1 180.3 181.7 180.5Compute the following:a. Range

A: Given: 180.5 181.7 180.9 181.6 182.6 181.6181.3 182.1 182.1 180.3 181.7 180.5