15. If government's spending increases by 60 and marginal propensity to consume is 0.8, how will the increase in equilibrium income be? a) 65 b) 300 90 d) 250
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: 3. A consumer is faced with a utility function u(x, y) = 4x² + 3xy + y² And his budget constraint is…
A: Thank You for the question. According to Bartleby's answering guidelines, we answer only the first 3…
Q: The 10 Marketing concepts . Direction: Connect each concept, in sequential order, beginning from…
A: 4. VALUE and SATISFACTION According to Gummerus, value is one of the most frequently misunderstood…
Q: Suppose there are only two goods in the economy: Yo-yos and Marbles. Bob only cares about his…
A: Indifference curve represents the various combination of 2 goods which yields same level of…
Q: Potatoes (tons) e 100 200 300 480 500 Sausages (tons) O 250 tons 350 tons O 150 tons O 750 tons a.…
A: Note: "since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Generally, opportunity costs increase and the production possibilities curve bows outward. Why?
A: The production possibility curve is the locus of different combinations of two goods that an economy…
Q: When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
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: An outward shift of a nation's production possibilities frontier can occur due to A B a reduction in…
A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…
Q: The table below presents the production possibilities schedules for the cities of Venice and…
A: Opportunity cost is the cost that is given in order to obtain more of a desired good. When a choice…
Q: 6. Assume a perfogly competitive firm incurs a total cost of $10,000, marginal cost of $38, and…
A: Profit refers to the amount of revenue earned over and above the total cost that a producer or…
Q: The way to build good credit is to: A. Secure a credit card, but never use it B. Pay off the credit…
A: Better management of money is essential for a sound financial stability and to build good credit.
Q: Economists charged with the responsibility for performing a benefit–cost analysis encounter many…
A: Since the question you have posted consists of multiple parts, we will answer the first three parts…
Q: Economists charged with the responsibility for performing a benefit–cost analysis encounter many…
A: Tangible benefits are those which are obvious and general in nature, usually countable or measurable…
Q: Calculate the factor (F/G, 10%, 5)
A: PRESENT WORTH METHOD In this approach of comparison, the cash flows of each option will be decreased…
Q: w does agriculture improve market role
A: Agriculture: Agriculture or tillage is the practice of growing crops and livestock. Agriculture was…
Q: Answer the questio
A: As we know A recessionary gap, or contractionary gaps, happens when a country's genuine GDP is lower…
Q: Which of the following statement is true? The present value of a given payment is lower the further…
A: According to the present value conecpt, the today's value of $1 is worth more than the future $1.…
Q: (1) Explain the difference between Gross Domestic Product (GDP) and Gross National Income. (ii)…
A: A macroeconomic factor called national income can be used to assess a country's economic stability.…
Q: Would the interest rate increase be more likely to hurt or help the financial institution’s…
A: Interest rates affect the profitability of financial institutions. The financial institutions…
Q: Calculate the price elasticity of demand and price elasticity of supply at the equilibrium price and…
A: 1) At equilibrium D = S 120 - 20 P = 40 P P = 2 Q= 80 Price elasticity of demand = (dQ/dP)…
Q: The Norway spruce trees that are grown in Christmas tree farms are considered? A. Land B. Capital C.…
A: The measure that depicts resources or inputs that are being used in process of production for…
Q: discuss the term money suply and explain its component in modern time
A: The most movable asset is money. It stands for the most basic type of capital asset. Money is widely…
Q: Define and explain the Coase Theorem.
A: Externality is the negative or positive spillover by the consumer or producer which affects the…
Q: You are employed by the state bureau of economic development. There is a demand for a leading…
A: An economic indicator refers to a statistic about an economic activity. Economic indicators allow an…
Q: Price P What would you expect to happen in the toilet paper market, based on the supply and demand…
A: Law of Demand refers to the variation that occurs in the demand of a good as a result of a…
Q: 5. Consider the Solow growth model. The production function is: Y = Ka (AN)¹-a, the saving rate is…
A: Solow Model of Economic Growth is an exogenous growth model where it studies how capital…
Q: c) Explain the dynamics underlying the differential equation dP dt where c and are constants. What…
A: In the given equation dPdt=cP(1-λP)where c and λ are constants The dynamics underlying it are as…
Q: True or false? Basic economic concepts can be used to understand the pricing of products.
A: Goods and services are produced by bring together various factors of production. These factors of…
Q: The common traditional consensus among economists is that the central bank cannot target both…
A: The central bank can control inflation and recession by monetary policy tools, but it can target one…
Q: Suppose that the market demand function is given by Q=200-P, where Q is the total market quantity…
A: When the marginal costs are same we use the following formula to calculate cournot and stackleberg…
Q: how does freidman reconcile the the apperent inconsistency between short term and long term…
A: Friedman's permanent income theory explains the apparent conflict between the proportional long-run…
Q: Willy owns a small chocolate factory, located close to a river that occasion- ally floods in the…
A: Given information Worth of the factory without flood=$500000 Worth of the factory with flood=$50000…
Q: ware developers. The benefits of this program 5, but also the goodwill generated by an increa d…
A: *Answer: . Given, Total benefit: B (Q) = 100Q -2Q^2 Total cost: C (Q) = 10Q Marginal benefit = dB…
Q: Establish the difference between Commercial farming and Subsistence farming with the help 3 of a…
A: The practise of raising cattle and plants is known as agriculture. The invention of agriculture,…
Q: If a McDonald's Happy Meal costs $3, how many Happy Meals per week c Instructions: Round your…
A: Given information: A McDonald's Happy Meal costs $3 France's Per Capita income (in 2016) = $38,477…
Q: What is the future amount is due at the end of the loan period
A: Here T = 13 months R = 20% P = 2000
Q: Benefit–cost analysis requires the monetization of all relevant benefits and costs of a proposed…
A: Value of environmental good is done through various methods to learn the value of these goods from…
Q: Required: i) Under a fixed exchange rate, a continuous increase in domestic credit will finally…
A:
Q: QUESTION 15 Which of the following statements is TRUE about income and wealth? O Income is a flow…
A: Introduction Stock refers to the value of variable at a point of time. It is not time dimensional or…
Q: al bank conducts an expansionary open mar ition, be careful to make clear the implic Is and the…
A: *Answer: The central bank, in collaboration with commercial banks, conducts open market operations.…
Q: The blue curve on the following graph shows the height of an airplane over 10 minutes of flight. The…
A: Slope is the mathematical instrument used in various studies that measures the rate of change of a…
Q: Explain commoditization ad feature of capitalism.
A: an economic and political structure where private proprietors, acting for their own financial gain,…
Q: 7. Suppose that a man lends $1000 for four years at 12% per year simple interest. At the end of the…
A: Compound interest (otherwise called compounding interest) is the interest on a loan or deposit…
Q: A homeowner does not recognize as taxable income the annual appreciation in the home's fair market…
A: Taxable income is the one on which taxes are imposed.
Q: 5 What is GDP?
A: We know that Gross domestic product(GDP) is macroeconomics term having very broad meaning.…
Q: Consider the following sequential-move game: Player 1 Player 2 Player 3 4 4 4 Player 2 L L Player 3…
A: Backward induction is a way to analyse the game in tree form from back to front. In these type of…
Q: Define and explain the Pigouvian Taxes.
A: A tax known as the "Pigouvian Tax" is imposed on economic actions that result in costs that are paid…
Q: Problem 1 View Help Mario consumes only cheese and crackers. a. Could cheese and crackers both be…
A: 1. When a person's income rises, their consumption of an inferior good decreases. In spite of having…
Q: The primary focus of the study of economics is on: a. expanding the production of goods and…
A: Meaning of Economics: The term economics refers to the situation under which there remain…
Step by step
Solved in 2 steps
- Consider the following table, which shows a household's disposable income and consumption expenditures. All values are expressed in dollars. Compute the marginal and average propensities to consume for each level of income and fill in the table. (Round your responses to two decimal places) Disposable Income (Y) 0 300 600 900 1,200 1,500 Desired Consumption (C) 420 660 900 1,140 1,300 1,620 MPC-ACIAY NA APC = C/Y₂ NA21- The purchase of a new car falls under which of the following types of expenditure? A) C B) M C) G D) X E) I5. The multiplier effect of a change in government purchases
- 1. Calculate the value of the multiplier 2. Calculate the equilibrium leve of income11. Assume that Government Spending (G) decreases by 25, what will be the change in Output (Y) if (a) MPC 0.8. (b) MPC-0.75. (c) MPS=0.4. (d) MPS=0.3.The multiplier 15) If the consumption function is C = $800 billion + 0.8Y (a) What is the MPC? (b) How large is autonomous C? (c) How much do consumers spend with incomes of $4 trillion? (d) How much do they save?
- 4. If you save $20 when you experience a $200 rise in your income:(A) your marginal propensity to save is 0.2. (B) your marginal propensity to consume is 0.9.(C) your marginal propensity to consume is 0.1.(D) your marginal propensity to consume is 0.8.1. Draw a graph to illustrate the desired aggregate expenditures of an economy whose participants have the following spending plans: C= $10 + 0.8Y I= $20 G= $30 X-M = $10 (a) What is the value of equilibrium output? (b) Assuming that the full-employment level of output is $300, what kind of gap exists and how large is it? Identify the gap on the graph. (c) How much are consumers saving at full employment?(a) What is the current equilibrium level of national income? = (b) What is the level of injections 5+ 8 + 7= 206 (c) What is the level of withdrawals o 60+5+8+710-70 yoour TR:7bS-? (d) Assuming that tax revenues are 7 billion, how much is the level of savings? 13-50 040 (e) If national income now rises to 80 billion, and as a result, the consumption of domestically produced goods rises to 58 billion, what is the mpca (f) What is the value of multiplier? (g) Given the initial level of national income of 80 billion, now assume that spending on exports rises by 4 billion, spending on investment rises by 1 billion, and government expenditure falls by 2 billion. By how much the national income will change? 83 Q2, You find the following economic data for a closed economy Utopia: Marginal propensity to consume = 0.6, Investment = 30, Governement spending = 20 Government revenues =20 (Tax collection) People will consume a minimum of 10, no matter what their income is. 4=80 2. I=6 1. What is…
- Consider this economy: C = 100 + 0.5Y |= 400 + 0.1Y Drag and drop options on the right-hand side and submit. For keyboard navigation... SHOW MORE V Marginal propensity to consume 1000 Multiplier 0.5 Income of equilibrium 500 Consumption of equilibrium 1250 Investment of equilibrium 2.5 600 525 725 II II II II II II II II II7. Study Questions and Problems #7 Suppose Sean has a total taxable income of $30,000, and he must pay $3,000 in taxes for clothing purchased this year. Yvette has a total taxable income of $65,000. The average tax rate for Sean is %. Based on Yvette's taxable income and the average tax rate you found for Sean in the prior question, calculate the minimum amount of tax Yvette must pay to achieve each tax structure listed in the following table. Type of Tax Structure Regressive Progressive Proportional Tax Needed to Achieve Tax Structure (Dollars)3. What is equilibrium income ($output), ye? $6,900 $3,450 $5,450 $5,050 $2,050