Answer True, False or Uncertain. Brieáy explain your answer The rate of return equality is inconsistent with the observations found in the Equity Premium Puzzle.
Q: When there are positive fixed costs, can the average variable cost curve and average total cost…
A: We have 3 different costs, ATC, AVC and AFC where ATC is the sum of AVC and AFC. Given that are…
Q: An economy’s capital stock was $46.3 billion at the end of 2016, $46.6 billion at the end of 2017,…
A: Net investment is the amount of money that is invested in the production of goods and services. or…
Q: At the end of 2019, a country's national debt was $ 200 billion. In 2020, the government spent $…
A: Budget refers to the official government document that details the government's income and expenses.…
Q: Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per…
A: As per the Fisher equation,Real interest rate = Nominal interest rate - Inflation rate
Q: evolution of savings accounts, loans and online banking post COVID-19
A: Customers have grown even more reliant on web and mobile apps as a result of the mandatory…
Q: Suppose that the production function of a firm can be written as Q = 0.5K0.8L0.3. Which of the…
A: Production function shows the relationship is the inputs used and the output derived. It shows…
Q: Question 4 Give the value for the consumer surplus in this market. Round to the penny. P 75 45.4 1…
A: Here, in the given graph, equilibrium price is 45.4, equilibrium quantity is 296, minimum…
Q: A. Suppose the demand and supply for the market of cigarettes in a city is given by QD = 400-50P, Qs…
A: Disclaimer:- since you asked multiple questions we are solving the 1st questions as per guidelines.…
Q: 1) Consider the follows Projects: If MARR= 17%. Recommend the best choice based upon ROR analysis: C…
A: Given Cash flow Cash flow Year Project A Project B Project C Project D 0 -500 -1000 -800…
Q: 1. Imagine an economy with a constant returns to scale production function. Answer the following:…
A: Constant returns to scale refers to that technology /production function in which the output changes…
Q: Based on a retail store that sells clothing for the age between 8 and 40 years . Describe the…
A: Price: It refers to the cost of goods and services present in the market. Price is the rate at which…
Q: Penelope utility function is U (a, b) = a+ 10b−b2, where a is the amount of apples consumed and b is…
A: Utility function : U (a, b) = a+ 10b−b2 Income = 100 b pounds on banana cost = b2 1 pound of banana…
Q: Continue your analysis of the video poker market in Chambana: demand by patrons for the games (in…
A: Here we are given the market for video poker. In this market there is a supply and the demand curves…
Q: Anna and Belle are playing chess. Outside the knowledge of Belle, Cathy made a deal with Anna that…
A: In any game, the players may or may not have complete information about other players.
Q: Your sister needs money and comes to you with a deal. She asks you to pay $2,000 at the end the…
A: Given, Your Sister asks you to pay $2,000 at the end of the first yearIncreasing this by $500 till…
Q: Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to…
A: Here we will find the present value of the gift using the annuity present value formula & the…
Q: Eddie's Precision Machine Shop is insured for $700,000. The present yearly insurance premium is…
A: The premium based on coverage is the sum that we pay for insurance on the basis of a particular…
Q: Equilibrium employment is_______ hours and the equilibrium real wage rate is $ _________ an hour.…
A: Demand refers to the curve which shows various quantities of a good being demanded at different…
Q: The following table contains data for a hypothetical closed economy that uses the dollar as its…
A: Here we are given various components of aggregate demand (like consumption demand, investment demand…
Q: The WTO has managed to solve all the problems of world trade. a) true b) false
A: Introduction WTO is an intergovernment organization that regulate and facilitate international…
Q: The following graph shows the market for loanable funds in a closed economy. The upward-sloping…
A:
Q: Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has…
A: The demand is an economic idea that connects with a customer's longing to buy labor and products and…
Q: QUESTION 17 Assume that the demand for a service depends on price and income, where the price…
A: Price Elasticity of demand : (-)0.6 The absolute value of price elasticity is less than, it means…
Q: wn? Figure 2: growth X Graded Assignment ch of the points shown in Figure 1 are feasible? Figure 1:a…
A: The above answer concept of based on the transformation curve or production possibility curve (PPC).…
Q: If Q = 0.5 K² L², and we use 2 units of capital and 2 units of labour, how much can we produce?…
A: As given production function is Q = 0.5K2L2 Also given K =2 , L=2
Q: how much money must you invest today in order to withdraw P1000 per month for 10 years if the…
A: Given that, Withdraw Amount = 1000 Rate of Interest = 12% Time Period = 10 years
Q: a. Obviously the world price and domestic price will now be $20. Calculate the quantity produced and…
A: If domestic price now is $20 then, 20= 125 -(3/8)Q => (3/8)Q = 125-20=105 =>Qd= (105*8)/3…
Q: For the Income-Consumption Line & Engel Curve: (kindly place Good A on the X-axis & Good B on the…
A: Here we are given the budget of the consumers which includes the price of 2 goods and consumer's…
Q: Question 7 (Hint: fill in the graph.) D: 5000-1.5Q S: 200+ 2.5Q In the world market for scooters,…
A: A country becomes an exporter when world price is greater than domestic equilibrium price.
Q: Y 0 Slope: negative and increasing X
A: Slope determines the change rate in the dependent variable as the independent variable changes. It…
Q: Using supply and demand analysis explain what would happen in the market for SUVs if the relative…
A: Demand refers to the quantity of the good demanded at various prices during a given period of time.…
Q: Eng. economics. If $2000 is invested at 7% interest compounded continuously calculate its value…
A: Introduction: The given invested amount is $2000.Interest earned by hte investment = 7%We have to…
Q: write a explanation about UN sustainability goals 8 and 12 and elkington's triple bottom line and…
A: Goal 8: Decent work and economic growth: Promote comprehensive and effective employment, fair work…
Q: Table 1 Year CPI 2013 97.8 2014 98.6 2015 100 2016 102.5 2017 104.1 a. Calculate CPI inflation rates…
A: Inflation is the rate of increase in prices over a given period of time. Inflation is typically a…
Q: Abbey, a surgeon, is risk-averse and is considering operating on a patient. She receives positive…
A: The measure that depicts the level of satisfaction being obtained by an individual from the…
Q: Given the following on a closed economy, determine the following The level of Private savings…
A: The following formula would be useful to measure PRivate Savings, Public Savings and National…
Q: How much money should be deposited each year for 6 years starting 1 year from today, if you wish to…
A: Cash flow is the net balance of money coming into and going out of a firm at a particular moment in…
Q: Explain the effect of an increase in demand for tomatoes on demand or supply of tomato pickers. What…
A: Demand is the quantity of the commodity that is sought after at various prices throughout a specific…
Q: You are given the following financial data about a new system to be implemented at a company:…
A:
Q: You have been offered a very long-term investment opportunity to increase your money one…
A: The internal rate of return (IRR) is a measure of estimating the probability of potential…
Q: The alternative policy is to introduce a tax of $3,000 on the sale of new cars. Under this policy,…
A: Here we are given the market of new cars. And here we have the demand and the supply curve. The…
Q: The following graph shows that the Phillips curve (expressing the relation between inflation and…
A: The Phillips curve shows that unemployment and inflation have an inverse relationship in the short…
Q: What is the elasticity of demand at Q = 500 when the demand equation is P = 1000 - Q? Recall that,…
A: An elastic demand is one in which the change in quantity demanded due to a change in price is large.…
Q: Suppose you had ₱100 in a savings account and the interest rate is 20% per year and you never…
A: Here, given information is, Present value (P): ₱100 Interest rate (r): 20% per year Time period…
Q: 19. Dani sells roses in a competitive market where the price of a rose is $8. Use this information…
A: In case of Perfect Competition a firm maximizes profit by producing output at level where Price is…
Q: In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption…
A: Consumption Function : C=750+0.9Y Autonomous consumption is that consumption level that occurs…
Q: 2) The Penn World Table includes several GDP figures. Suppose that you want to compare the standard…
A: 2) First of all, we have to know the term standard of living. Standard of living actually measures…
Q: Question 3 social cost At a given market price suppose the elasticity of demand is -2.2 and the…
A: Elasticity measures the responsiveness of quantity to changes in the price.
Q: Find the consumer surplus, producer surplus and total surplus, given the following: Demand: ? =…
A: It is based on the concept of interaction of demand and supply but demand is downwards sloping curve…
Q: 30 Assume the economy is in a recession. Understanding the economic theory of John Maynard Keynes,…
A: When talking about multiplier impact of change in government spending or aggregate demand on the…
Answer True, False or Uncertain. Brieáy explain your answer
The
Premium Puzzle.
Step by step
Solved in 2 steps
- Explain how a country may experience greater equality in the distribution of income, yet still experience high rates of poverty. Hint: Look at the Clear It Up 'How do governments measure poverty in low-income countries?' and compare to Table 15.5.How is the poverty rate calculated?What is the concept of horizontal equity and why is ithard to apply?
- ← → X VD C Calculate the income tax for a single person who has $81,396 of taxable income using the table below which shows the tax brackets for 2016 for single workers. TODE EQ Taxable Income $0 to $9,375 $9,376 to $37,550 $37,551 to $90,850 $90,851 to $189,500 $189,501 to $411,650 $411,651 to $414,500 $414,501 or more Answer to the nearest penny. Tax Rate 12% of amount over $0 $945 plus 16% of the amount over $9,375 $5,278 plus 26% of the amount over $37,550 $18,526 plus 29% of the amount over $90,850 $46,592 plus 34% of the amount over $189,500 $119,622 plus 36% of the amount over $411,650 $120,135 plus 40.2% of the amount over $414,500 hpPls help with below homework-) Is it true that universal guarantedd basic income is the best solution for poeverty and income ineqality ? Please explain in details.A5 South Africa's top 10% of earners contribute almost half of all revenue, and the richest 10% of its residents holds 85.6% of net wealth, according to the OECD, which sees scope for the tax system to be used more to reduce inequality. Based on the above paragraph, which of the following statements is INCORREC A. South African 's bottom 90%of income earners contribute allof to the revenu B. South Africa's income inequality levels are very hig C. South Africa' s income inequality levels are very lo D. South Africa's income contribution is equalwheT
- SC Many economists believe that a more effective way to supplement the income of the poor is through a negative income tax. Under this scheme, everyone reports his or her income to the government; individuals and families earning a higher income will pay a tax based on that income, while low-income individuals and families receive a subsidy, or negative tax. Assume that the only qualification required to receive a tax credit is low income. Suppose the government uses the following equation to compute a family's tax liability: Taxes Owed = (1/4 of Income) For each of the incomes listed in the following table, determine the tax liability for a family with that income level. (Note: If a family receives a subsidy because its income is too low, be sure to indicate the tax liability as negative.) Income Tax Liability (Dollars per year) (Dollars per year) 0 20,000 40,000 60,000 77°F Mostly sunny (1/4 of Income) - $10,000 F1 F2 0- F3 Q+ F4 F5 DA COL F6 i F7 1 C J F8 C F9 SAC F10 FO F11 F12 2…Consider an eronomy with the following equation. C = atb( Y-T) cY - dite %3D N = fY-gi G = G P= 1 () is-Curve U Derive oun eapression for the and explain whatt this eguaton ropresents 122) Denje an expreacion for the LM-aurve ond explain what t "reprerents b2) Compete the lovel A private caving when both the goods and financiat morket are in eguilibrium.S The table below shows labor income for four individuals and the amount each has pa Labor Income, Tax Paid, and Average Tax Rate Labor Income Individual Samantha Charles Amanda Young (dollars) $40,000 60,000 84,000 105,000 O The income tax is progressive. The income tax is regressive. The income tav ic proportional
- Answer the questions based on the data in the table. Round all answers to two places after the decimal. Earner Annual income amount Income tax amount Sally $90247.00 $29781.51 Steve $160249.00 $46472.21 Jamie $230251.00 $57562.75 Pat $300253.00 $72060.72 What is Sally's tax rate? % What is Pat's tax rate? %D Question 5 Based on the figure below, which of the following is correct? Gini coefficients (various years, 2013-2019) Market Gini Disposable Gini Slovakia Slovenia Iceland Czech Republic Belgium Norway Finland Denmark Austria Sweden Poland Germany Hungary Ireland Canada France Netherlands Switzerland Estonia Greece Portugal Russia Luxembourg Australia Italy Spain Japan Latvia Korea Israel Romania Lithuania South New Zealand UK US Turkey Bulgaria Mexico Chile Brazil India Costa Rica O Income inequality in market income is lower in lower- and middle-income countries O India does the most to reduce inequality in disposable income by using taxes and transfers O Taxes and transfers have no impact on the inequality in disposable income O Income inequality before taxes and transfers is similar in the US and most European countries China South Africa FULLSCREEN Figure 5.21 Income inequality in market and disposable income across the world.Explain very briefly what you understand from income effect and substitutioneffects of change in income tax rates
