Consider an economy with two goods, cloth and food. The production possibility frontier of this economy is given by 3Q2+Q2 = 3600. Preferences of the consumers are described by the following utility function U(Qc+QF)=√√QcQF- Suppose this economy can trade with the rest of the world at the relative price of cloth to food equal 3. How much food will this economy import? [Insert your answer up to the nearest integer]
Q: Suppose Australia s unemployment rate began to rise, and the government passed an investment tax…
A: When Australia implements an investment tax credit to combat rising unemployment, it will trigger a…
Q: The financial investments of the Iraqi Credit Bank amounted to 10000 Cash 150% of loans Fixed assets…
A: The purpose of this question is to show the figures indicate that the Iraqi Credit Bank has a…
Q: expenditure (trillions of 2005 dollars) Aggregate planned 20 16 12 8 4 45° line AE 8 12 16 20 24…
A: Induced expenditure (IE) is the changes in spending that result from changes in income or economic…
Q: If the demand for a good decreases, the demand for the factors used to produce the good: None of…
A: The objective of the question is to understand the relationship between the demand for a good and…
Q: Euler equation for consumption,
A: In Macroeconomics, the Euler equation for consumption The Euler equation for consumption explains…
Q: Refer to the diagram to the right which shows cost and demand curves facing a profit-maximizing…
A: In this perfectly competitive market, all the firms sell exactly the same product at the same price.…
Q: When a banking system hold some excess reserves to anticipate withdrawals or some uncertainties, and…
A: This question asked us to determine the impact of holding excess reserves and public cash holdings…
Q: located at opposite extremities of the city. The two shops sell an identical product, for which…
A: The main aim of this question is to explain the consumer having unit demands of identical product.…
Q: DISCCUSSION Consider non-fiscal barriers to the free movement of goods: quantitative restrictions,…
A: Non-fiscal barriers are impediments that prevent goods from moving freely between EU member states…
Q: Two Bistro restaurants, Bistro 1 and Bistro 2, have demand functions for meals defined as Q1 = 44 –…
A: This can be defined as a concept that shows the cost incurred in the production process of a…
Q: There is a shrimp species whose Marginal Growth Function is MG(S) = 1 - 2S/K. Where S is the stock…
A: 1. Marginal Growth Function (MGF): 2. Carrying Capacity (K): 5003. Discount Rate: 4%
Q: What factors are generally considered responsible for GDP growth in developed countries? Have the…
A: Gross domestic product is the summation of a country's final goods and services. The economic…
Q: I Need all the way to 36 months please.....
A: Interest payment is the additional amount of money over the principal amount that a debtor has to…
Q: The Aguiar et al. (2017) study concluded that a revolution in the video game market-better games at…
A: Given information:Labour demand function: L=200−wLabour supply curve: L=50+w−2VIn 2015, young men…
Q: Assume a trade surplus position at start in Home. Assess the simultaneous impact of the following on…
A: International economics delves into the connections among nations in the world economy,…
Q: Figure 4-3 Price (dollars per pound) $21 18 15 13 11 40 80 Supply Demand Quantity (pounds) Figure…
A: Market inefficiencies create deadweight losses for consumers and producers. It arises due to the…
Q: 4. Celery leaves and basil are substitutes in making chicken noodle soups. A drought destroyed a…
A: The objective of the question is to understand the impact of a change in the supply of one good on…
Q: S IX Price per pound 0 O vertical; P; Q Q O vertical; P'; Q O horizontal; P; Q O horizontal; P; Q'…
A: The objective of this question is to show effect of a sugar quota on the supply curve, that the…
Q: Consider an economy with two goods and two consumers with preferences a. Draw the Edge worth box for…
A: The aim of this question is to analyzing a two-goods, two-consumer economy, the Edgeworth box, also…
Q: Draw a Phillips curve graph here that shows a natural rate of unemployment of 4% and a current…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: On 20 April 2021, the Government of Bangladesh announced an additional BDT 105 million allocation as…
A: Macroeconomic evaluation is defined as evaluating the overall performance, trends, and indicators of…
Q: Explain the balance sheet channel of monetary policy influencing risk externalities as a theory for…
A: Monetary policy refers back to the actions, decisions, and measures taken by a country's principal…
Q: 12. Treasury Bills (LO1, CFA2) A Treasury bill purchased in December 2016 has 55 days until maturity…
A: The aim of this question is to show the analyze a T-bill purchased in December 2016 with 55 days…
Q: How does the concept of "deflation" differ from "disinflation," and what are the potential…
A: Deflation is an economic phenomenon characterized by a sustained decrease in the general price level…
Q: What is the relationship between average variable cost and marginal cost? a) They are always equal…
A: Prior to diving into the connection between average variable cost (AVC) and marginal cost (MC), it's…
Q: Tim and Alyssa Espinosa live in Dallas and enjoy going out to fancy restaurants for dinner and to…
A: The purpose of this question is to show the indifference curve depicts the combination of two goods…
Q: Consider the market for loft houses. The market price of each loft house is $320,000, and each…
A: The difference between what consumer’s willingness to pay (WTP) for a good or service and what they…
Q: [B] The data pertaining to the various components of the money supply in India are as follows…
A: Money stock, in basic terms, is the overall sum of money in circulation within an economy at a…
Q: Assume the economy of Chile is in a long-run equilibrium with full employment. In the short run,…
A: The long-run aggregate supply curve is the graphical representation of aggregate supply data in the…
Q: What is the impact on interest rates when the Federal Reserve decreases the money supply by selling…
A: Monetary policy is done to control and manage the amount of money in circulation and interest rates…
Q: A and B have the same utility u (x, y) xy. Since the agents' initial allocations are given by eA =…
A: Walrasian equilibrium in the economy occurs when the utility of each agent is maximized given the…
Q: . In a monetarist model of the balance of payments, assuming a fixed exchange rate and starting from…
A: The purpose of this question is to show the monetarist model provides insights into how events…
Q: X has 20 tokens for the Church Raffle. A pizza slice cost 2 tokens and tickets to the state fair…
A: There are 20 tokens with X.The pizza slice costs 2 tokens.The ticket fare to visit the state fair is…
Q: What are real prices? A real price is a price that has been adjusted for inflation. A real…
A: Price refers to the amount of money or value assigned to a product, service, or resource.
Q: What does fixed cost refer to in economics? a) Costs that vary with the level of production b) Costs…
A: Fixed costs are a key idea in financial matters and business, playing an essential part in the…
Q: Suppose a firm in a symmetric monopolistic- competitive industry (i.e., all firms in the industry…
A: Monopolistic competitive market:In this market, there are large numbers of buyers and sellers. They…
Q: QUESTION 17 The table provided below represents the market demand for pens. There are no fixad costs…
A: Individuals' desire to buy a product or goods according to the willingness to pay is referred to as…
Q: 2 Concerts and parking prices Taylor Swift is in the Bay Area and is giving two concerts on Friday…
A: The total number of tickets supplied is 50000. The marginal cost of supplying the tickets is…
Q: Consider an economy consisting of three people – A, B, and C. Person i (where i is A, B, or C) has…
A: The purpose of this question is to explain the individual has a utility function, which represents…
Q: The Based on the following equations Saving (S)= 0.2Y Investment(1)= - 30r + 740, Money Supply(Ms)=…
A: The interplay of money demand and supply holds significance in an economy, shaping inflation,…
Q: 1. Using a graph show how a demand function can be derived, given the consumer's preferences map,…
A: Budget constraints measure the total quantity of goods that an individual can afford within a…
Q: Distribution of Costs and Benefits) Suppose that the government decides to guarantee an above-market…
A: Understand the Scenario- Government guarantees an above-market price for a good.- Buys any surplus…
Q: What is the relationship between the business cycle and economic growth, and how do government…
A: The business cycle and economic growth are principal ideas in macroeconomics. The business cycle…
Q: Tom and Sue had W-2 earnings of $100,000 last year. They deposited $5,000 into each of their IRAs…
A: In this scenario, we need to calculate the change in Tom and Sue's net worth. Net worth is…
Q: Refer to Figure 8-9. The per-unit burden of the tax on sellers is
A: Imposition of tax increase the production cost resulting a leftward shift of the supply curve. A…
Q: The local government has decided that because children's health has large external benefits, it will…
A: Externalities are essential in economics because they represent the unintended consequences of one's…
Q: What is Neoclassicism in economics?
A: In economics, neoclassicism alludes to a school of thinking that created in the late nineteenth…
Q: 5. Suppose a quadratic function is given by y = f(x) = x29x + 8. (a) Does this function represent an…
A: The functions which are expressed in the form are called quadratic functions, where x is variable…
Q: The United Kingdom had a drinking problem. British per capita consumption of alcohol rose 19%…
A: Specific tax is applied on a per-unit basis for commodity. This tax is imposed on a particular…
Q: Consider a manufacturing firm using human capital at home to produce two inputs, 'R & D' and…
A: The PPF curve highlights the different combination of goods that the producer can look to produce…
M⁵
Step by step
Solved in 4 steps with 1 images
- Consider a trade economy with two people (A and B) and two goods (1 and 2). Person A's utility function is U A = x1x2 where xi is A's consumption of good i E (1, 2). Person B's utility function is U B = y1 + y2, where yi is B's consumption of good i = (1, 2). There are 20 units of each good in the economy. Which of the following allocations are efficient? (a) x1 = 10, x2 = 10, y1 = 10, y2 = 10. (b) x1 = 7, x2 = 7, y1 = 13, y2 = 13. (c) x1 = 0, x2 = 0, y1 = 20, y2 = 20. (d) x1 = 15, x2 = 10, y1 = 5, y2 = 10. (e) x1 = 12, x2 = 12, y1 = 6, y2 = 6.Consider an economy with two goods, cloth and food. The production possibility frontier of this economy is given by Q, +Q = 8000. Preferences of the consumers are described by the following utility function U(Qc,Q;) =/Q.QF: Suppose this economy can trade with the rest of the world at the relative price of cloth to food equal 2. How much food will this economy import?For all questions, refer to the graph on the reverse side. Use this graph for 1 – 4. The graph represents the market for coffee. Estimation may be necessary, so show work. Name a good that will see increased sales due to the tariff or quota above. Name a good besides coffee that will see decreased sales due to the tariff or quota above. Suppose that 1 US$ = 1.5 South African Rand. Also, suppose that the representative good, peanut butter, is $3 per jar in the US and 4 Rand per jar in SA. How will this situation affect the exchange market for U.S. dollars? Explain/show the effect(s) of these prices. Include the initial effect(s), the market adjustment(s), and the final result(s) on equilibrium.
- Elliot and Jordy find themselves on a deserted island. The only two activities available are fishing and finding pineapples. In a full day, Elliot can catch 6 fish or find 12 pineapples or some linear combination of the two; in the same time, Jordy can catch 4 fish or find 10 pineapples or some linear combination of the two. Assume, initially, that there is no possibility of trade between Elliot and Jordy. If Elliot wishes to consume 4 fish per day, what is the maximum number of pineapples that he could consume each day in addition to the 4 fish? Briefly explain your reasoning. If Jordy wishes to consume 2 fish per day, what is the maximum number of pineapples that he could consume each day in addition to the 2 fish? Briefly explain your reasoning. Now assume that trade is possible between Elliot and Jordy. If they want to continue to consume the same number of fish indicated in part (1), how many additional pineapples would they be able to collectively consume each day relative to…The U.S. imports lumber among other goods from Canada. The lumber has been the topic of political dialogue between the 2 countries in the past few days. So let’s take X as ‘lumber’ and Y as ‘other goods’. Suppose the Canadian lumber and other exportable goods are produced with the following production Possibilities frontier (PPF): X2 + Y2 = 900 Suppose the U.S. utility function for the Canadian lumber, X, and other exportable goods, Y, is: U = X Y a. Derive the conditions necessary to determine the ‘Optimal Product Mix’ discussed in chapter 10. b. Draw the PPF (partial just the first quadrant) with Y on the vertical axis. On the same graph, draw at least one indifference curve so as to show the “optimal product mix’. Can this graph represent the ‘pure exchange’ economy? Explain why or why not. c. Now draw in a price line that can make the ‘optimal product mix’ a competitive exchange equilibrium. Can…Give typing answer with explanation and conclusion Consider an exchange economy consisting of two people, A and B, endowed with two goods, 1 and 2. Person A is initially endowed with ωA = (0,10) and person B is initially endowed with ωB = (11,0). They have identical preferences, which are given by U^A(x1,x2) = U^B(x1,x2) = x1^2*x2. Suppose that p2 =1. Under the competitive equilibrium, what is p1? Round answers to two decimal places.
- I am eight hour day Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight hour day Rolfe can produce either 8 loaves of bread or 8 kilograms of butter. a)what is Andy's opportunity cost of producing one loaf of bread? What is rolfes opportunity cost of producing one loaf of bread b) who has the comparative advantage in bread production? Who has comparative advantage in butter production? c)would they both gain from specialization and trade in other each other? Show it through a numerical exampleQuestion 1: Suppose the economy's PPF is given by Y=100-X²/100 and that there are ony tNo people in the economy, Thomas with a utility function of UT=XTY T and David with a utility function of UD=Xp+YD. a) What is the Pareto optimal quantity of each good produced in the economy?Page < 2 Question 1: Consider a pure exchange economy with two consumption goods, X and Y, and two consumers, A and B. There are 20 units of X and 20 units of Y in the economy. The preferences of the consumers are represented by the following utility functions: UA(XA, YA) = 4XA + 3YA of 3 UB (XB, YB) = 5(XB)4 (YB)² Q1 a) Suppose that initially consumer A has 5 units of X and 15 units of Y, and that consumer B has 15 units of X and 5 units of Y. Is this allocation Pareto efficient? Let Px and Pybe the prices of goods X and Y, respectively. Write down expressions for the two individuals' budget constraints.
- When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Freedonia and Desonia. Both countries produce grain and tea, each initially (i.e., before specialization and trade) producing 6 million pounds of grain and 3 million pounds of tea, as indicated by the grey stars marked with the letter A. TEA (Millions of pounds) tea. 16 14 12 10 8 6 2 0 0 PPF 2 Freedonia Þ 4 6 8 10 12 GRAIN (Millions of pounds) 14 16 ? TEA (Millions of pounds) 16 14 Note: Dashed drop lines will automatically extend to both axes. 12 10 6 2 0 0 PPF I 2 Desonia 4 6 8 10 12 GRAIN (Millions of pounds) 7 Freedonia has a comparative advantage in the production of while Desonia has a comparative advantage in the production of ▼. Suppose that…Consider Snackistan, a hypothetical country that produces only burritos. In 2017, a burrito is priced at $2.00. Complete the first row of the table with the quantity of burritos that can be bought with $300. Hint: In this problem, assume it is not possible to buy a fraction of a burrito, and always round down to the nearest whole burrito. For example, if your calculations result in 1.5 burritos, the answer should be 1 burrito. Price of a Burrito Burritos Bought with $300 (Dollars) 2.00 Year (Quantity) 2017 2018 Suppose the government of Snackistan cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 10% by 2018. Assuming monetary neutrality holds, complete the second row of the table with the new price of a burrito and the new quantity of burritos that can be bought with $300 in 2018. The impact of the government's decision to raise revenue by printing money on the value of money…Consider a pure-exchange economy of two individuals (A and B) and two goods (X and Y). Individual A is endowed with 5 units of good X and 3 units of good Y, while individual B with 3 and 4 units of goods X and Y, respectively. Assuming utility functions of individuals A and B to be UA=XA YA² and UB-XB² YB where Xi and Yi for i= {A, B} represent individual i's consumption of good X and Y respectively, what will be the set of Pareto optimal allocation in this economy?