What happens to the deadweight loss and tax revenue when a tax is increased?

Q: Case D: Apex Company. Apex is a perfectly competitive firm. It has total fixed costs of $300/day an...

A: The total cost of production is the aggregate of total variable cost and total fixed cost at a certa...

Q: Explain it early but correctly.

A: Given, Cost function, Price (P) = $10 Here, x is the output. So, The marginal cost,    

Q: “The federal funds rate can never be below the interestrate paid on reserves.” Is this statement tru...

A:   Meaning of Federal Fund/Reserve System: Federal Reserve System act as a fiscal agent for governmen...

Q: What are some of the disadvantages of China’s peggingthe yuan to the dollar?

A: Pegging currency refers setting a specific fixed exchange rate for one country’s currency to another...

Q: Q1:Is GDP is good measure of economic well being ...? Discuss the relative term and argue whethedr G...

A: The gross domestic product is the aggregate of the values of all final goods and services produced i...

Q: How does a general increase in uncertainty as a resultof the failure of a major financial institutio...

A: This has been observed that in US when uncertainly is high, then the financial crisis has started ei...

Q: When interest rates decrease, how might businesses andconsumers change their economic behavior?

A: The interest rate is the rate charged by the lender on the asset lend by them. The asset lend can be...

Q: In the late 1970s, Prof. Michael Porter began publishing articles on strategy that would have a prof...

A: Monopolistic competition is an imperfect market structure in which many firms sell products that are...

Q: Mixed Dominance 1: Let o; be a mixed strategy of player i that puts positive weight on one strictly ...

A:

Q: Why can government safety nets create both an adverseselection problem and a moral hazard problem?

A: Adverse selection occurs when the buyers have the information that the sellers do not have or the vi...

Q: What three motives for holding money did Keynes consider in his liquidity preference theory of the d...

A: Liquidity is a term used to describe the conversion of an asset into liquid form like cash.

Q: If the US government reduces the tariff on imported coffee will this affect the supply or the demand...

A: The trade is the exchange of goods and services between the producer and the consumer at a mutually ...

Q: Suppose a state aims to make it easier for people to purchase school supplies for children by exempt...

A: Sales tax holiday refers to the limited time period where sales tax is reduced or waived off on few ...

Q: Highest/Lowest GDP/GNP in the world (2017/2018/2019)

A: GDP is defining as the aggregation of the services and goods produced in the (domestic) country at t...

Q: Suppose a given country experienced low and stableinflation rates for quite some time, but then infl...

A: According to portfolio theories of money demand, an individual or investor likes to invest his/her a...

Q: True or False: Households sell finished products to businesses.

A: Circular Flow Model describes how an economy works. It analyses the manner in which an economy flows...

Q: Are households primarily buyers or sellers in the labor market?

A: Explanation A market is a place where goods and service are exchanged at a given certain level of pr...

Q: Provide two microeconomic statements and two macroeconomic statements

A: Macroeconomics studies the economy as a whole and not just on specific companies. For example, macro...

Q: Explain five ways in which a firm might increase its profits by raising the wages it pays?

A: Wages refer to the fixed amount of sum paid to the workers for rendering their services in a firm or...

Q: Why do we measure short-run output Y~in percentage terms rather than in dollar terms?

A: Output is the quantity of products or services produced by a company, industry or nation in a given ...

Q: Does the AD curve shift?

A: AD (Aggregate demand) depicts sum dd (demand) for the nation and how it interconnects at the level o...

Q: How the Fed affects investment:Te Federal Reserve exercises monetary policyby means of a very short-...

A: Central (reserve bank) has the power to control the supply of money through its policy (monetary). I...

Q: If you were going to get a loan to purchase a new car,which financial intermediary would you use: a ...

A: ANS A credit union is a cooperative that is owned by members those who shares the profits, these uni...

Q: 1. Explain the main drivers of the new economy.  Not copy paste answer provide gives in own your wor...

A: The major drivers of new economy are technology, globalization and market deregulation. The role the...

Q: Q)using concept of ordinal utility theory, derive two demand curves-one rhat keeps money income cons...

A: Ordinal utility theory given by Hicks, it is based on the ranking of the bundle. Consumer rank bundl...

Q: Economics Question

A: Expenditure Approach is a method of calculating the Gross Domestic Product (GDP) of the country. In ...

Q: Per capita GDP in the long run: Suppose an economy begins in steady state.By what proportion does pe...

A:   Meaning of Per-Capita GDP: A country’s GDP or gross domestic product is calculated by taking into ...

Q: Suppose household annual demand for gasoline follows the equation QD =  2000 – 500P + 25I where P i...

A: Given:  Household annual demand for gasoline:  QD =  2000 – 500P + 25I  P = 3 and I = 60.  Quantity ...

Q: True or False: Money must be issued by a government for people to accept it.

A: ANS Money can be anything that is used as a common medium of exchange irrespective of it is issued b...

Q: Some economists suspect that one of the reasons economies in developing countries grow so slowly is ...

A: The financial markets are the markets where the financial institutions help to channelize the flow o...

Q: Which statement concerning a production possibilities curve is not true? a. it is usally linear b. a...

A: The production possibility curve represents graphically all the production possibilities of two good...

Q: the father of classical school of economics was Adam Smith? a. True b. False

A: Adam Smith is considered the father of Classical economics, he had written “The Wealth of Nations” i...

Q: Computing levels: Suppose xt grows at 2% per year and yt grows at 5% peryear, with x0 = 2 and y0 = 1...

A: With formula used for x    0 1 2 10 17 35     *(1+0.02)1 *(1+0.02)2 *(1+0.02)10 *(1+0.02)17 *(1...

Q: The slope of the AD curve:(a) Why does the AD curve slope downward?

A: ANS The Aggregate Demand (AD) curve is the curve that represents how the quantity of total demand of...

Q: Currency crises and the demand for dollars: Suppose there is a currency crisisin the rest of the wor...

A: Exchange rate is the price of a currency of one country in terms of the currency of another country....

Q: The Mexican peso is trading at 11 pesos per dollar.If the expected U.S. inflation rate is 1% while t...

A: The Purchasing power parity (PPP) theory is an important international economic theory as it determi...

Q: 5. A man wishes his son to receive P200,000 ten years from now, What amount should he invest if it w...

A: The future value of the investment is P200,000.  The investment to be done in current period is P. I...

Q: Assume that beef and pork are substitutes for consumers. If there is a drought in the cow grazing ar...

A: Part a Explanation If beef and porks are substitutes, if there is drought in cow grazing area then t...

Q: Demand and supply often shift in the retail market for gasoline. Below are two demand curves and two...

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

Q: Q) The cost of oil production became relatively cheaper in 2020 would this affect the supply or dema...

A: If the cost of oil production became relatively cheaper in 2020 this would affect the supply curve. ...

Q: Q) What are some economic opportunities and challenges for an ageing population? Can you show this w...

A:   Meaning of Ageing Population and Economic Opportunity: Ageing Population refers that as large gene...

Q: Following a policy meeting on March 19, 2009, theFederal Reserve made an announcement that it wouldp...

A: The Federal Reserve buys and sells Treasury securities to change the money supply.   When the Federa...