Q: ) If P(B) = 1, P(AUB) = and P(A/B) = 3, then which of the following statements is true? A) P(A) = }…
A: Given - P(B) = 1/4 P(AUB) = 1/2 P(A|B) = 2/3
Q: What are the proposal's potential positive and negative externalities?
A: A cost or benefit incurred or received by a producer that is not incurred or received financially by…
Q: Julia has usual preferences over X and Y, and, at current prices and income, she spends 1/2 of her…
A: Consumer preferences are said to represent the subjective (individual) tastes of distinct good…
Q: A consumer of two goods has indirect utility v(p, w) = -1/2 P₁ + P₂ (a) Find the indirect…
A: Indirect utility actually shows the combination between price of a good and income of a consumer…
Q: Real GDP versus Nominal GDP?
A: When talking about GDP, it can be said that it is calculated in two ways that are real GDP and…
Q: What are the 3 basic economic problems? Briefly
A: An economic problem is one that arises as a consequence of a scarcity of resources and requires…
Q: Derive the formula to estimate the volatility parameter (used in the Black-Scholes formula) using…
A: The formula to estimate the volatility parameter is as follows: Volatility Parameter = Square Root…
Q: D6
A: An oligopoly is a form of market structure in which there are few large sellers for a homogeneous or…
Q: How would the Autonomous Vehicles technologies affect workers (e.g., productivity, employment…
A: For economists, technology is everything that makes production of goods faster, better, or less…
Q: Need help with question 7 and 8 please
A: The "Golden Rule" of government spending is a financial strategy expressing that an administration…
Q: Evaluate a combined cycle power plant on the basis of the Present Worth Method (PW) when MARR is 12…
A: Investment Cost = 12,693 Salvage Value = 3,000 Annual Operating Cost = 1000 Overhaul Cost (end of…
Q: Use the table to answer the question. Number of Workers 10 O b O c d 20 30 Output (thousands) $0.43…
A: Number of workers Output Fixed Cost Variable cost 10 3 2000 100 20 5 2000 200 30 6 2000 300
Q: Miho invested $5000 in a bank that pays an annual interest rate of 9% compounded continuously. What…
A: Invested amount = $5000 Annual interest rate = 9% Total time period = 15 years
Q: Nominal GDP measures the value of all goods and services Group of answer choices without…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Q: 2. Alternative price indexes Because there isn't one single measure of inflation, the government and…
A: A consumer price index is a price index, the price of a weighted average market basket of consumer…
Q: The willingness to pay for the future ability to use the environment is called [?] value. Please…
A: People are willing to pay for projects and programs that will help to avoid a fall in the…
Q: Find the consumer surplus at the equilibrium 13) D(x)= 5 – 3x; x = 1 A $1.50 B) $6
A: Information given is:- D(X) = 5-3x , X=1
Q: Suppose you want to withdraw $30,000 at the end of year 3 and another $30,000 at the end of year 5.…
A: When money is put somewhere, interest is accrued. Principal value refers to the original deposit,…
Q: 1. Compute the present worth at time zero of deposits of $1,000 a year for 10 years with nominal…
A: Given Time Period = 10 Years Interest Rate = 18.23% Periodic Payment = $1,000
Q: Multiple Choice The effectiveness of a board of directors in monitoring managers will be enhanced by…
A: The Owner's equity alludes to the proprietor's investment in a resource after all liabilities have…
Q: 3. Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the…
A: Given Short-run price elasticity of demand ed=0.2 Long-run price elasticity of demand Ed=0.7 We…
Q: Answer quickly 1,2 and 3 Questions?asap
A: We know that Strategic planning: Refers to the planning under which the players will play in a…
Q: (This question refers to the MRU video 'The Demand Curve Shifts'.) Most goods are normal goods,…
A: Demand represents quantity demanded at different prices by buyers. Supply represents quantity…
Q: PRICE O C P₁ Od 0," P₂ P₁ Ob P3. P2. A P4 B D F LL G d Refer to Figure 7-9. The equilibrium price is…
A: In a market, when talking about the equilibrium condition, it can be said that it is the situation…
Q: Suppose the figure night, raises the floor price of milk above the displayed 51.50-per-litre floor…
A: A price floor is the minimum legal price below which the quantity can not be traded. From fig, At…
Q: Suppose we are again given 20 tulip bulbs that are very similar in appearance. Information on this…
A: Probability characterizes the likelihood of the event of an occasion. There are some real…
Q: A farm producing wheat has the following production function q = 100(K0.8L0.2). Does the above…
A: refers to how much output changes given a proportional change in all the inputs i..e where all…
Q: PProblem 3-Page (174): The following table gives you information on the total cost of Mac's ice…
A: Average total cost is alluded to as the entirety of all production costs divided by the total…
Q: supply occurs when price elasticity of supply is less than 1, and, than 1. [4.5.1 How Much Quantity…
A: Elasticity of supply is the percentage change in quantity supplied due to percentage change in…
Q: K The cost of a nation's market basket in the base year is $1,200, and the current year's price…
A: Price index measures the overall price level of market basket of goods and services.
Q: QUESTION 6 25 20 15 10 5 0 Figure A 0 3 6 9 1215182124 25 20 15 10 5 0 b) Supply and demand in…
A: The demand and supply curve of any good represent the market. Both demand and supply curve intersect…
Q: Why aren't greater resources given to prudential regulation of the financial sector because it is…
A: It is difficult for regulators to effectively coordinate and collaborate with the financial…
Q: 45. To achieve an output level that is socially acceptable, the government of Plealand has placed a…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: The nation of Potchatoonie produces hockey pucks, cases of root beer, and sandals. The following…
A: Introduction Here Potchatoonie produces hockey pucks, cases of root beer, and sandals. Here we have…
Q: C. Dan likes to consume x and y in "fixed proportions": twice as much of x as of y. That is, his…
A: Consumer consumes x & y in the fixed proportion. He consumes twice as much of x as of y
Q: Refer to the following table when answering the following questions. In this economy, only two goo…
A: A statistical tool known as an index number measures the degree of change in a variable or group of…
Q: Answer the following questions based on the accompanying diagram: Price ($) 20 18 16 14 12 10 00 a 4…
A: Elasticity measures the responsiveness of quantity demanded with respect to change in quantity…
Q: a. Explain the important steps in the construction of Causal Loop diagram. Also provide link…
A: The behavior of cause and effect from the perspective of a system is shown using causal loop…
Q: With the news that the construction industry is on the rise again in the U.S., the major car…
A: The supply of pick-up trucks increased due to major car manufacturers increasing the production of…
Q: 1. When one of the factors of production is fixed in quantity or is difficult to increase,…
A: 1) Law of diminishing return states that in a process of production wherein factors of production is…
Q: there C is total cost, F is fixed cost, c is a constant and ost, and average cost? Over what range…
A: Given information; C(q) = F + cq Where C is the total cost, F is fixed cost, c is constant, and q is…
Q: 13. The equilibrium price of coffee in an economy, measured in dollars, is about $2,000 per ton. To…
A: The law of demand says that if everything remains constant except the price then the demand and…
Q: 12 8 4 0 0 e) 4 8 12 16 D1 20 09. A possible explanation for a change in demand from D1 to D2 is a)…
A: The demand function can be given as: Qx = f(Px, Pz, M , t) Where Qx : Quantity demanded for good x…
Q: QUESTION 7 The output gap is increasing over time because actual GDP is greater than potential GDP…
A: The output gap is an economic proportion of the distinction between the actual result of an economy…
Q: The research department of the Corn Flakes Corporation (CFC) estimated the demand of the corn flakes…
A: We are given the demand function as: Qx =2.0 -4.0Px +3.0I +1.6Py -6.0Pm +2.0A Qx =Sales of CFC…
Q: Briefly explain whether you agree with the following statement: "If consumer surplus LOADING... in a…
A: Economic Surplus : Consumer Surplus + Producer Surplus Consumer Surplus : Area below the demand…
Q: Suppose that there are two countries, X and Y, which differ in both their rates of investment and…
A: The steady state level is reached where the per capita variables such output per capita, capital…
Q: Long-run average cost (AC) of operation may decrease for three reasons. a. List and explain the…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first 3 subparts for you. If…
Q: Again consider an extension of the Stag Hunt game. There are N = 3 hunters. This time each hunter…
A: In game theory, a Nash Equilibrium is a set of tactics. According to the Nash Equilibrium, the best…
Q: J09
A: We know that Great skill entrepreneurs have the power to alter the manner we tend to live and work,…
F2
Step by step
Solved in 2 steps
- The demand for Australian dollars in the foreign exchange market equals 14000 – 3000e and thesupply of Australian dollars in the foreign exchange market equals 2000 + 2000e, where e is thenominal exchange rate expressed in euros per Australian dollar. If the Australian dollar is fixed at 2euros per Australian dollar, then to maintain this fixed rate, what is the required change in theReserve Bank of Australia’s holdings of euros? 1increase by 4000 euros 2decrease by 2000 euros 3decrease by 4000 euros 4increase by 2000 eurosPurchasing-power parity holds between the nationsof Ectenia and Wiknam, where the only commodityis Spam.a. In 2020, a can of Spam costs 4 dollars in Ecteniaand 24 pesos in Wiknam. What is the exchange ratebetween Ectenian dollars and Wiknamian pesos?b. Over the next 20 years, inflation is expected to be3.5 percent per year in Ectenia and 7 percent peryear in Wiknam. If this inflation comes to pass,what will the price of Spam and the exchangerate be in 2040? (Hint: Recall the rule of 70 fromChapter 27.)c. Which of these two nations will likely have ahigher nominal interest rate? Why?d. A friend of yours suggests a get-rich-quickscheme: Borrow from the nation with the lowernominal interest rate, invest in the nation with thehigher nominal interest rate, and profit from theinterest-rate differential. Do you see any potentialproblems with this idea? Explain.If the price level recently increased by 19% in Englandwhile falling by 6% in the Canada, by how much mustthe exchange rate change if PPP holds? Assume that thecurrent exchange rate is 0.58 pound per dollar
- Under a fixed exchange rate regime, when the value of the domestic currency decreases, it is called a(n) O depreciation O appreciation O revaluation O devaluation O none of these are correctA can of soda costs $1.25 in the United States and25 pesos in Mexico. What is the peso–dollar exchangerate (measured in pesos per dollar) if purchasingpower parity holds? If a monetary expansion causesall prices in Mexico to double, so that a soda nowcosts 50 pesos, what happens to the peso–dollarexchange rate?If the Japanese price level rises by 5% relative to theprice level in the United States, what does the theoryof purchasing power parity predict will happen to thevalue of the Japanese yen in terms of dollars?
- Evaluate the following statement: "if lower exchange rates increase a nation's exports, the govermment should do everything in its power to anure that the exchange rate for its cumency is an low as it can possbly be This statement does nat acknowledge that lower exchange rates OA couid result in a reluctance from other countries to accept this nation's currency for payment of any goodn or services OB. could make a currency virtually worthless. O C. make a nation's imports more expensive. COD. None of the above responses are acknowledged by the statement.Which of the following statement is incorrect? O Most of the answers are correct. O Diversifying investments across several countries often reduces risk. The absolute purchasing power parity theory posits that exchange rates are determined by the differences in the prices of a given market basket of traded goods and services when there are no trade barriers. O An exchange rate of two currencies found by using a common third currency is known as an interest rate. O Exchange rates can be expressed as the number of units of the domestic currency per one unit of the foreign currency.If the actual exchange rate for the euro value of the Australian dollar is higher than the exchange rate that would satisfy absolute PPP, which of the following statements is correct? O The Australian dollar is undervalued because its extinal purchasing power exceeds its iternal purchasing power O The Australian dollar is overvalued because its external purchasing power exceeds its internal purchaing power The Australian dollar is undervalued because its internal purchasing power exceeds its external purchasing power O The Australian dollar is overvalued because its internal purchasing power exceeds its external purchasing power
- In Delhi, a haircut costs 135 rupees (INR). Thesame haircut costs 15 Singapore dollars (SGD) inSingapore. At an exchange rate of 50 IN per SGD,what is the price of an Indian haircut in terms of aSingapore haircut? Keeping all else equal, howdoes this relative price change if the INRdepreciates to 55 INR per SGD? Compared to theinitial situation, does a Singapore haircut become more or less expensive in relation to an Indianhaircut?Consider the balance-of-payments accounting information for Lalaland in 2010 as shown in the table below. All values are in billions of dollars and any variables not provided below have a value of zero. Exports Imports Net foreign-investment income Capital outflows Capital inflows 500 510 - 40 180 90 What is the net change in the stock of Lalaland's investments abroad in 2010? ..... O A. an increase of $30 billion O B. a decrease of $30 billion OC. a decrease of $50 billion O D. an increase of $50 billion O E. insufficient information to determineThe nation of Narnia had a current account deficitof $423 million and a nonreservefinancial account surplus of $360 million in year3695. a.What was the balance of payments of Pecunia in thatyear? What happenedto the country’s net foreign assets? b.If there is a sudden increase in sales of goods andservices to foreigners,what effect do you expect in the Balance of Paymentaccount? c.How would the increase in domestic interest rate inyear 3695 affect thebalance of payment?