Explain fully why a money economy is much more productive than an economy without money. Explain fully how banks create money.

Q: Suppose that in 1980, the U.S. inflation rate was 13 percent and the unemployment rate reached 8…

A: Okun's law describes the empirical relationship between the change in the rate of unemployment and…

Q: Use the table to the right, which shows the federal minimum wage over the past 70 years, to answer…

A: To determine the minimum wage in 1990 that would match the highest inflation-adjusted value shown in…

Q: Price (dollars per battery) 20 18 16 14 12 10 8 0 A 8 Sus World price + tariff World price Dus 100…

A: In the absence of trade, the equilibrium price in the domestic market is calculated by finding the…

Q: A Production B Income C Expenditure way eas

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

Q: The value of U in the chart below is Quantity FC VC TC MC 3 U 24 4 24 12 0 08 12 4 AVC ATC 8 Z

A: The expenses incurred by a firm that change in direct proportion to the level of production are…

Q: Question 2 The diagram below shows aggregate demand and long-run aggregate supply in a given economy…

A: The AD-AS (Aggregate Demand-Aggregate Supply) framework is an economic model used to analyze the…

Q: Q1) If the firm’s average cost curves are U-shaped, why does its average variable cost curve achieve…

A: Average total cost (ATC) in economics refers to the average cost per unit of output produced by a…

Q: Find the Nash equilibrium in pure strategies when 1. Ben and Jerry move at the same time, not…

A: A pure strategy according to the game theory notion of Nash equilibrium, each player in a game…

Q: Explain the concept of Globalization and discuss in detail three (3) pros and three (3) cons in…

A: Liberalization, Privatization, and Globalization, or LPG reforms are a set of policies adopted by…

Q: The diagram below shows a country's aggregate demand and supply schedules, with equilibrium at point…

A: The AD-AS framework and Keynesian economic theory offer complementary perspectives on…

Q: Describe this graph in words and in terms of the fisher effect

A: A bond is a financial instrument that represents a loan or debt obligation. It is a fixed-income…

Q: Question 3 The average cost of producing 10 units for a firm is £15, and the average cost of…

A: As given Average cost of producing 10 units is £15and Average cost of producing 11 units is £17.as…

Q: Manisha could work for another firm making $10,000 per month, but she decides to open her own…

A: Economic profit or loss is the difference between the revenue received from the sale of an output…

Q: 34: If firm X produces 20 units of product with a total cost of 100, what is its average cost? - a)…

A: Number of units produced=20 unitsTotal Cost=100Definition:Total Cost: Total cost includes all the…

Q: EXERCISE 74.1 (Electoral competition for more general preferences) There is a fi- nite number of…

A: Voting economics is an analysis of voting behavior, parliamentary structures, and electoral outcomes…

Q: Monique borrowed $1,118 for 12 weeks at a simple interest rate of 834%. How much money does she need…

A: It is given that Monique borrowed - $1,118; the simple interest rate is 8 3/4% or 8.75%. Also, it is…

Q: A competitive firm’s short-run supply curve is its cost curve above its cost curve . a.…

A: Perfect competition refers to a market arrangement characterized by the presence of numerous firms,…

Q: Question 30 Eco Energy has a monopoly on vitamin tonic. Its demand schedule and cost schedule are…

A: The quantity of output that maximizes profit is reached when the firm produces at a point where the…

Q: Provide two ways in which the criteria for investing differ between Foreign Direct Investment and…

A: Foreign Direct vestment refers to the investment made by individuals, businesses, or entities from…

Q: Does a “rational” individual always reduce labour supply in response to a proportional income tax?…

A: Does a “rational” individual always reduce labor supply in response to a proportionalincome tax?

Q: discuss how banks,capital and money market work to dynamically allocate money between those who do…

A: The money market refers to a market where short-term borrowing and lending of funds take place. This…

Q: Cost figures for a hypothetical firm are given in the following table. Use them for the exercises…

A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…

Q: A study found that minorities and the unemployed consult physicians less frequently. Accessing…

A: Telemedicine refers to the process of providing medical care, diagnosis, treatment, and consultation…

Q: P P* Pw dump d a el I I I Q₂ f I I I C g I I h I I I I I I I 1 Q3 Q4 I I I Q5 D ermans are able to…

A: The consumer is the final user of any good or service. A consumer is a person who uses a good or…

Q: When studying GDP, we use real GDP because we need a metric that holds: O exports constant to…

A: GDP or gross domestic product is the sum of the value of all end commodities…

Q: Question 8 When an increase in the rate of growth causes a correspondingly larger increase in the…

A: Investment refers to the act of allocating resources, typically financial capital, with the…

Q: what will be the long-run expected real interest rate during these ten years?

A: To calculate the long run expected real interest rate, we will use following formula:

Q: t a student café, there are equal numbers of two types of customers with the following values. The…

A: Price discrimination is, in general, a monopolistic characteristic. This is due to the fact that in…

Q: 1) Show that the firms risk preferences exhibit constant absolute risk aversion (CARA) 2) When 0-0.1…

A: Absolute risk aversion is a measure of how much a person dislikes risk, and it is calculated as the…

Q: 5. Two players simultaneously decide whether to contribute (C) or not (N) towards producing a public…

A: Bayes-Nash equilibrium is a concept in game theory that combines the principles of Bayesian games…

Q: Which of the following statements explain why governments are usually more concerned about…

A: In case of Oligopoly there are few firms who control the entire market. Firms have power to make…

Q: 19 A decision tee is used when modeling games in which sming matters any type of game a prisoner's…

A: A decision tree is a predictive modeling tool that uses a tree-like flowchart structure to make…

Q: Suppose a country with a comparative advantage in product A focuses on making and selling that…

A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…

Q: Consider the equations and graphs for the demand and supply functions given below, then answer the…

A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…

Q: If the monthly outflow from unemployment equals 500,000 people and the average duration of an…

A: Unemployment alludes to the condition of being without a paid job or occupation while effectively…

Q: Is the term “developing country” still relevant and/or appropriate? Clearly explain your response…

A: The term "developing country" is still commonly used to refer to nations that face economic and…

Q: 7. Solving for dominant strategies and the Nash equilibrium Suppose Antonio and Trinity are playing…

A: The dominant strategy is the best course of action irrespective of rival firm strategy. It is a best…

Q: A car costs $A25,000 in Australia. In the US, the same car costs $U$18,000. If the $A/$US exchange…

A: The value of one currency in another currency's terms is known as the nominal exchange rate. It also…

Q: Consider the function: f(x, y) = y² − 3xy − 3y + 9x² - In the following you are asked to find and…

A: Finding the optimum solution for a given objective function while maintaining consideration-specific…

Q: Which of the following is not a typical characteristic of a market system? Multiple Choice…

A: A market system is an economic framework that relies on the interplay of buyers and sellers in an…

Q: 1. What are the tools of macroeconomic policy?

A: Disclaimer- “Since you have asked multiple questions, we will solve the first question for you as…

Q: Consider the national income model below 0< ac ΟΥ Y C(Y)-I(i)- Go=0 kY + L(i) - Mso 1; al di < 0; ƏL…

A: National income models can be used to explore characteristics impacting economic expansion,…

Q: 2 X Player 1 4 Player 2 2 y 1 3 X 2 b O X 3 4 2 X 1 5 Consider the game tree given above: a. Write…

A: In game theory, a firm's choice of options that will increase returns on the firm is referred to as…

Q: Kaneb is evaluating two alternative pipeline welders. Welder A costs $310,000, has a 7-year life,…

A: The time value of money refers to the concept that a sum of money is worth greater now than the same…

Q: What is the equation for the steady state capital per worker k* in terms of savings rate…

A: The Cobb-Douglas production function is not the same as the one indicated by the production function…

Q: Distinguish between economies of scale and economies of scope. Why can one be present without the…

A: Economies of scale refers to the bulk production of a single product to lower the cost of production…

Q: In an international market, we say that a country will be an (Blank) of a good if it has the (Blank)…

A: International trade refers to the process of exchange of goods, services, and capital across the…

Q: Refer to the data for 2019 below to answer the following questions: The Equivalence of Expenditure…

A: GivenU.S. total income in 2019 =$21,427 billionWage and salaries =$11,434 billionCorporate profit…

Q: the private sector is an engine to economic growth and development in malawi. discuss in 4000 words

A: Economic growth and economic development are connected yet particular ideas that depict various…

Q: If the current interest rate is higher than the coupon rate on the bond: The sale price will be less…

A: While the current interest rate is higher than the coupon price on a bond, it means that the…