Fiat money is accepted as money becaus?

Q: Consider a hypothetical economy in which households spend $0.50 of each additional dollar they earn…

A: Given:- Household spends=$0.50 Government increase purchase by=$3.5 billion Please find detailed…

Q: Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 50 million…

A:

Q: 5. Suppose the market is perfectly competitive. The market equilibrium market price P = $20. A…

A: As given Market equilibrium price = $20 WTP = 30 - q MC = 2q

Q: Austrian economists believe that the Dodd-Frank Law encourages rent seeking because businesses can…

A: The Dodd-Frank Act imposed financial sector regulations and established initiatives to prevent…

Q: Q1. Jason has preferences defined over novels (good x) and DVDs (good y) described by the utility…

A:

Q: A movement to the right along a given short-run Phillips Curve could be caused by?

A:

Q: Consider the ASIAD model. The AS curve is: Ý, = a - bm(n, –- 7) and the AD curve is: T, = n,-1 + DỸ,…

A: The method of establishing and declaring an explicit currency inflation target percentage and…

Q: A firm that is a natural monopoly can supply the entire market at a lower average total cost than…

A: Natural monopoly  Natural monopoly stands for a market where there is a single seller in a market.…

Q: 1. In the basic Cournot model, both firms have constant marginal costs, c, and no fixed sts. Show…

A: We are given that, both the firms have constant marginal cost in the cournot model. i.e, MC = c and…

Q: Suppose a firm wants to produce 50 units of output at minimum cost and it has three factories with…

A: Perfect Competition refers to the type of market where there is a large number of firms that produce…

Q: Suppose Ming spends his entire income on two goods, X and Y, has "standard-looking" indifference…

A: Consumption refers to the intermediate or ultimate process through which institutional entities…

Q: Recall that the economic goal of criminal law is to minimize the sum of three things: (1) the social…

A: Given information Social cost of each criminal=$10000 The cost of trying and punishing=$25000 Due to…

Q: i. Human Development Index (HDI) is measuring + dimensions and four indicators. ii. In a M-Form…

A: The correct answer is given in second step.

Q: How will an increase in aggregate demand most likely affect the economy in the long run? Because…

A: If there is an increase in aggregate demand, it will lead to increase real GDP and price level in…

Q: st rate 1 percentage point lower flation rate. Nominal interest rate ot fall below zero. ph the MP…

A: *Answer:

Q: Which of the following sequence of events follows an expansionary monetary policy? A) rt =It = ADI…

A: A). An expansionary monetary policy means increasing the money supply in the economy faster than…

Q: 1. Consider the following normal-form game: L C R U 5, 10 | 5, 3 | 3,4 м 1,4 7, 2 7,6 N 4, 2 8, 4…

A: As given 4×3 game player 1 has 4 strategy U, M, N, D and player 2 has 3 strategy  L, C and R.

Q: What are the distinguishing features of oligopoly?

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

Q: Firm X's strategies 180 rides 60 rides $3,000 $1,000 100 rides $3,000 $6,000 Firm Y's strategies…

A: We have 2×2 matrix game in which each firm has two actions 100 rides and 60 rides.

Q: INSUR A life insurance company wishes to examine the relationship between the amount of life…

A: We have X and Y data to estimate the regression.

Q: Impact Inc. is an economic consulting firm that prepares economic impact reports for cities and for…

A: Economic impact of event  is the creation of business or financial outcome in consequences. It can…

Q: For each of the regions listed in the following table, use the midpoint method to identify if the…

A: The correct answer is given in the second step.

Q: Suppose Ming spends his entire income on two goods, X and Y, has "standard-looking" indifference…

A: Consumption is the intermediate or ultimate process through which institutional units consume items…

Q: Assume that each $1 billion in investment in capital goods generates 0.4 percentage point of the…

A: Real GDP is a macroeconomic statistic that measures the value of the goods and services produced by…

Q: The larger the number of firms in a monopolistic competition situation:

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: If the price of a good falls and expenditure on the good rises, the demand for the good is  A.…

A: Elasticity measures the responsiveness of quantity demanded to changes in price level.

Q: A decrease in the demand for chocolate with no change in the supply of chocolate will create a _____…

A: Equilibrium is achieved at a point where demand curve intersects supply curve.

Q: Firm 1 faces a demand function of q1 = 100– 2p1+p2, where q is Firm l's output, Pi is Firm %3D l's…

A: Under these presumptions, it very well may be shown that the Bertrand (Nash) equilibrium is that…

Q: Savannah is buying a $190,000 home. She has been approved for a 3.28% mortgage rate. She was…

A: According to the question, Loan Amount = $190,000 Interest Rate = 3.28% = 0.0328 Time Period = 1…

Q: Which of the following strategies of multinational companies is more likely to reduce costs?…

A: A multinational company refers to the type of a firm that operates its business in more than one…

Q: A simple random sample of 37 rolling-and-wheeled backpacks being sold on Amazon had a mean price of…

A: As given sample size = 37 Mean price = $67.49 Population standard deviation = 14.33 Value of 90%…

Q: Brent, the international oil marker, hit US$130 a barrel on 8th March 2022. The oil price is close…

A: Aggregate supply, is the total supply of labor and products created inside an economy at a given by…

Q: 13. General Electric Company which manufactures electric motor has a capacity of producing 150…

A: * SOLUTION :-  (13)

Q: 13-8 A S40,000 machine will be purchased by a company A whose interest rate is 12%. The installation…

A: Given information Initial investment=$40000 Installation cost=10000 i=12% cash flow

Q: by p = 0.0875x. Find the consumer and producer surpluses. (Assume the demand function is linear.)…

A: Consumers' surplus is a proportion of consumer welfare and is characterized as the overabundance of…

Q: Suppose the government implements an expansionary fiscal policy to finance e-toll gantries. Required…

A:

Q: A life insurance company wishes to examine the relationship between the amount of life insurance…

A: We have given the data on amount of life insurance held by a family  and family income  The linear…

Q: What’s the monetary policy? Why the Fed implements the monetary policy?

A: What’s the monetary policy? Answer: Monetary policy is a tool to improve the economic situation…

Q: Consider the two-period household-maximization model discussed in class. The model is modified in…

A: Utility function : log c1 + log c2  Budget Constraint of period 1 : c1 + a1 = y1 - t1 + (1+r)a0…

Q: 10. A local company assembling stereo radio cassette produces 300 units per month at a cost of P800…

A: Profit is the difference between the total revenue and total cost. Total revenue is the revenue that…

Q: Given the following information, what quantity is profit-maximizing for a monopolist? Explain your…

A: The quantity of profit-maximization is at that point where marginal revenue is equal to marginal…

Q: 68. Supply-side economic studies indicate that a. Marginal income tax rates of about 20% start to…

A: Disclaimer: Since multiple questions have been posted, the answer to the first question is provided…

Q: When used with a natural monopoly, an average cost pricing rule results in economic losses for the…

A: A natural monopoly occurs when only one firm has the whole market power. the firm with a natural…

Q: 1- The value of the price elasticity of demand is equal when the price is 2 = P for the following…

A: Qd = 9.3-0.5P With P=2

Q: Q1. Suppose the demand curve for pizza in the café is given by Q=300 - 20P- 20P1, where P1 is the…

A:

Q: RUSTIC CABIN-Cost breakdown for 2,000ft2 cabin. Estimate: $250,000. COST ITEMS PERCENT OF TOTAL COST…

A: Answer; The correct option is $125

Q: efer to Figure 14.1. Suppose the government imposes a subsidy of Ps minus Po. ompared to a free…

A: Consumer surplus under free market is achieved where demand is equal to supply Consumer surplus in…

Q: If real GDP equals 7,000, nominal GDP equals 14,000, and the price level equals 2, then what is…

A: Answers   Here, given information is, Nominal GDP (PY)= 14,000 Real GDP (Y)= 7,000 Price level…

Q: Expected utility = Utility × subjective probability . Question- Explain what you understand  from…

A: In economics, "expected utility" refers to the utility that a person, entity, or aggregate economy…

Q: 6. Two players each pick a positive integer between 1 and 100. If the numbers are identical, noone…

A: Given,  Two PlayersBoth players pick a positive integer between 1 and 100If the numbers are…