Question 1: Suppose the economy's PPF is given by Y=100-X²/100 and that there are oy cn people in the economy, Thomas with a utility function of UT=XTY T and David with a utility function of UD=Xp+Yp. ontimol quantity of each good produced in the economy?
Q: 3. Profit maximization using total cost and total revenue curves Suppose Cho runs a small business t...
A: Selling a product or service at a predetermined price generates a company's revenue. An organization...
Q: Suppose that Amazon decides to spend $10 million on a new distribution center. If the marginal prope...
A: To measure all the amount of goods and services produced at a given time in a country, gross domesti...
Q: 1. To set up wastewater plants and connect the trailer and low-income households to the nation's sew...
A: Cost-benefit estimation is a long-deployed economic strategy that endeavours to provide a synopsis o...
Q: 2) If the expected return on U.S. T-Bonds falls from 3 to 2 percent and the expected return on corpo...
A: Given, The expected return on U.S. T-bonds changes from 3 to 2 percent and The expected return on co...
Q: Using what you know about national income accounting, answer the following: Assuming that household...
A: National income is the summation of all factored income earned by the normal resident of a country d...
Q: Consider the market for flu vaccines, in which consumption causes positive externalities by creating...
A: Supply curve : Qs = 2 + 2P Private Benefit Curve : Qd = 60.5 - 2.5 MBP Social Benefit Curve : Qd = ...
Q: What about the other part of the question that talks about the elasticity of substitution and the re...
A: Elasticity is a measure of a variable's sensitivity to a change in another variable, most commonly t...
Q: No plagrisum and correct answer please. Please do all four parts..Thank You advance Consider two com...
A: Introduction Two country Bangladesh and South Korea produce two commodities smartphone and travel ba...
Q: Because firms are the primary demanders of loanable funds, they must borrow from households or forei...
A: Loanable funds:- The loanable funds hypothesis can be explained as a market interest rate concept. ...
Q: The waste Management faud case What impact did the fraud have on the company? What recommendations...
A: Waste Management had passed through the rapid expansion stage and was now in the mature, slow-growth...
Q: hat if the Global Initiative for Mental Health is not achieved?
A: To become developed, the country needs to have a healthy population. A healthy population will engag...
Q: Using what you know about national income accounting, answer the following: a. Assuming that househ...
A: Disposable income is the income that is left after paying taxes. It is the income that is used to sp...
Q: many countries produce a single good upon which much of their economy depends. That good might be co...
A: The production possibility frontier (PPF) is a graph that depicts the maximum amount of two items th...
Q: the difference between gross income and disposable income. the percentage reduction in taxes due to ...
A: Average Propensity to Save can be defined as the amount of the disposable income that is saved. It i...
Q: What would be the effect on the market for bonds of Company X if the default risk increases for Comp...
A: The given diagram shows bond price relationship with bond quantity demanded/supplied. When default r...
Q: All of the following rules are effective in reducing the budget deficit except O A. spending caps. B...
A: Politicians frequently set goals to erase fiscal deficits by a specific year. There is a huge politi...
Q: statement is TRUE, correct and valid. Write "F", if otherwise. If your answer is either "T" or "F" e...
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three question for you ...
Q: Residents of poor countries tend to have higher rates of infant mortality because a) mothers in poor...
A: Infant mortality rate refers to the probability of children dying under the age of one.
Q: if y=10k0.5 and current k is 100, depreciation is 10%, population growth is 2%, then for income per ...
A: Depreciation rate (d) = 10% Population growth rate (n) = 2% Let's assume saving rate is 's' --------...
Q: A. Describe how a set of data can be represented in graphical form as frequency polygon. B. Table 3 ...
A: Since you have posted a question with multiple subparts we will solve first three subparts for you. ...
Q: What annuity is required over 10 years to equate with a future amount of P20,000? Assume i= 6% annua...
A:
Q: Suppose a particular population has two kinds of health risks, high and low. Let the expected annual...
A: Community rating is a health insurance pricing system in which insurers are not allowed to charge pe...
Q: Which of the following statements about the economy's aggregate demand curve is not correct? Questi...
A: Aggregate demand shows the relationship between price level and real GDP. It is downward sloping.
Q: Suppose you put $500 into a bank account today. Interest is paid annually and annual interest rate i...
A: The formula to find future value from present value is, FV = PV (1 + r)n
Q: 24. Suppose that some country had an adult population of about 50 million, a labor- participation ra...
A: Labor force is the sum of unemployed and employed people. Unemployment rate refers to the percentage...
Q: The market (inverse) demand function for a homogeneous good is P(Q) = 10 – Q. There are two firms: f...
A: Total cost is the expenditure of converting raw material into finished goods. It means the expenditu...
Q: Suppose Alice faces the following prices and income across two periods. Prices Income Period 10 1 20...
A: We have p1=10, p2=12 and m1=200, m2=250and r=5% or 0.05 We have to find an intertemporal budget for ...
Q: What were other sources of economic growth besides slavery?
A: Economic Growth is the increase in the output or production of goods and services in the country dur...
Q: Consumer has utility function In(c1)+beta*In(c2), where beta=1. Interest rate i=0%. (NOTE!) Income y...
A: Utility function : ln(c1) + ln(c2) (As Beta = 1 ) y1 = 10 , y2 = 50 Budget Constraint in peri...
Q: Suppose that in 1980, the U.S. inflation rate was 13 percent and the unemployment rate reached 8 per...
A: The correct answer is given in the second step .
Q: At age 30 you invest P5,500 into a mutual fund. If the fund averages an 7% annual return, your inves...
A: Investing at the age of 30 till 55 age then total number year is 25 years and it will earn 7% Intere...
Q: An example of physical capital is O a) a worker. O b) a college degree. Oc) a computer. O d) a new p...
A: There are different types of inputs , physical capital, human capital, labor and land.
Q: Consider a simple economy whose only industry is fishing. In this industry, productivity-the amount ...
A: Here is the solution,
Q: The price and quantity data for Year 1 and Year 2 are as follows: Bread Butter Year 1 Quantity 50 10...
A: Real GDP = when the good of a year evaluated at base year prices.
Q: An example of an institution that will increase the expected payoff of investment is O a) a more eff...
A: The amount required to repay a loan in full, including all accumulated interest and fees, as well as...
Q: You borrowed money today to be paid in 8 equal payments at the end of 8 quarters. If the interest ra...
A: In the financial world, "principal" is a term that can mean various things. When referring to a loan...
Q: 2. Explain how each of the following situations would affect a nation's production possibilities cur...
A: "As per the guidelines answer is provided to the first three sub-parts." "Production possibilities c...
Q: Explain the causes and consequences of global poverty
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and scarcit...
Q: With the help of a demand and supply diagram, explain how a video showing small worms in sausages wi...
A: Demand is defined as that amount of quantity of a good or service which is demanded by consumers at ...
Q: Give 2 projects that were implemented by the government in the Philippines for the prevention of cov...
A: COVID-19 has had a significant impact on the Philippines. According to the most recent WHO estimates...
Q: (15 Marks) A new public arena costs $60 million. The largest portion of this amount, $40 million, is...
A:
Q: Suppose Sky would like to spend Php 1000 to rent the badminton court (C) and study area (S) on a wee...
A: We have given that Rent of badminton court (P1)= Php 100 per hour Cost on study area (P2) =Php 150 ...
Q: Consumer has utility function In(c1)+beta*In(c2), where beta=1. Interest rate i=0%. (NOTE!) Income y...
A:
Q: 1. To set up wastewater plants and connect the trailer and low-income households to the nation's sew...
A: The investment is considered fruitful when the present value of benefits exceeds the present value o...
Q: What are three errors that Ricardo made in his own work on trade theory?
A: Ricardo's theory infers that comparative benefit as opposed to absolute benefit is liable for a lot ...
Q: During a recent 30-day period, the Squish restaurant sold 600 Ocean Delights at a price of $6.45. Du...
A: Total revenue is the multiplication of price and quantity. The price rises then the total revenue ri...
Q: 1. DARPA is planning to purchase a new machine. The initial investment required for this is $60,000....
A: Cash Flows refer to the regular periodic payments made or received by a firm or any individual. It c...
Q: Since Covid hit in 2020, the Federal Reserve created $6.5 trillion of new money. Currently bank rese...
A: Given information: Change in monetary base: $6.5 trillion Reserve requirements: 10% To find: effec...
Q: For the cash flows shown, use an annual worth comparison and a MARR of 10% per year to determine the...
A: AW method:When comparing alternatives, the AW method is commonly used.AW means that all incomes and ...
Q: Question 1 Sa A Consider a 2-player game with strategy sets S - (a,b}for player 1 and Sz={c,0) for p...
A: A dominant strategy is such a strategy that a player chooses every time, no matter the strategy sele...
Step by step
Solved in 2 steps
- If a good is free, when will a consumer stop wanting to buy the good? Once the total utility equals zero At the quantity where marginal utility is at its maximum Once the marginal utility equals zero When marginal utility is negative Once the marginal utility equals total utility What is used to measure a consumer's entire satisfaction or happiness of a choice? Total utility Marginal cost Marginal utility Total Revenue Total costs Which of the following best defines the term utility as it is used by economists? when a market allocates resources in a way that maximizes consumer and producer surplusIf this good is available for $0 (a free good), what is the maximum amount an individual would consume? _____ units. What is the marginal utility of this last unit? 0 untils.Say that Laura (L), Maureen (M), and Carrie (C) are three individuals who are contemplating the purchase of some amount of good X. Units of X can be produced at a constant marginal cost of 24. The following equations show how the marginal benefit (M B) that each individual places on X varies with the quantity she consumes: L: MB(L) = 30 - X M: MB(M) = 24 - X C: (MB(C) = 20 - X (a) How much of this good should they purchase if X is a private good? (b) How much of this good should they purchase if X is a public good? (c) Construct a diagram to illustrate your answer to part b.
- We begin by solving the consumer’s problems: (a) What is the US’s budget constraint? (b) Describe the maximisation problem of the US, set up the Lagrangian, andderive the US’s optimal consumption of smartphones and rice as a functionof the price of smartphones ps, the price of rice pr and the profits of thesmartphone producer πs (you do not need to solve for these profits yet).Question 6: Transitivity There is only one consumption good in the world (cities). Karen is moving – suppose that her preferencesover cities are described as follows: she strictly prefers city A to city B if either (1) the average rent in cityA is cheaper than in city B, or (2) the average rent is the same in both cities, and there are more goodrestaurants in city A than in city B. Are these preferences transitive? Justify your answer.1. George is a musician who enjoys playing two different instruments. His utility function is given by U(G,S) = 8G¹/² + S, where G and S denote guitars and sitars, respectively. The prices of guitars and sitars are PG & Ps respectively. For the following consider guitars to be the good on the horizontal axis. a. Set up George's cost minimization problem when he wants to achieve a utility level (Ū = 28), which he considers to be consistent with a "reasonable" lifestyle. Be sure to identify what he is minimizing and what is serving as his constraint. b. Given your answer to part (a), find the bundle of goods George would consume to achieve a utility level 28, while minimizing the money he spends (solve this symbolically and then substitute in the numerical values). Also find a symbolic expenditure function, that is, E(PG, Ps, ū) for George. What is the minimum amount he needs to spend given the prices PG = $200 and Ps= $100? c. Now suppose Apple Records gives George a guaranteed income…
- Question 1. Below are the choices made by Albert, Brittney, and Calvin when choosing from different sets of fruits. Albert's choices Brittney's choices Calvin's choices Menu Apple, Banana Apple, Banana Banana, Pear Apple, Pear Apple Pear (2) (3) Apple (4) Apple, Banana, Pear Apple 1. Can Albert's choices be represented by any utility function? If so, find a utility function that represents his choices. If not, explain why by finding contradictions in the implications of his choices. 2. Do Albert's choices violate Axiom a or 3 ? Banana Apple Banana Apple Pear Apple Banana 3. Can Brittney's choices be represented by any utility function? If so, find a utility function that represents her choices. If not, explain why by finding contradictions in the implications of her choices. 4. Do Brittney's choices violate Axiom a or 3? 5. Can Calvin's choices be represented by any utility function? If so, find a utility function that represents his choices. If not, explain why by finding…Consider two commodities: toy cars and batteries. Each toy car takes three batteries to operate. Suppose Andy enjoys a toy car only if it moves and Andy has no other toy that needs battery. That is, one toy car and three batteries are a set of perfect complements to Andy. Task 1: Let x1 >= 0 be the quantity of toy cars and x2 >= 0 be the quantity of batteries. FindafunctionU(x1, x2)thatrepresentsthispreference. Task 2: Draw Andy's indifference curves going through bundles (2, 3), (4, 3) and (5, 5) in the commodity space in the same graph. How does Andy's preference order these 3 bundles in terms of > or ? Task 3: What mathematical expression describes the line formed by all the corners of the indifference curves?fa producer has an option to use resources to produce either good X or good Y, then these goods are * substitutes in consumption O complements in production. complements in consumption O substitutes in production.
- 5. Carol and Bob both consume the same goods in an economy of pure exchange. Carol is initially endowed with 9 units of good 1 and 6 units of good 2. Bob is initially endowed with 18 units of good 1 and 3 units of good 2. They both have the utility function U(x₁, x₂) = 1/3 x1³x2³. If we set good 1 as the numeraire (so that p₁ = $1), what will the equilibrium price of good 2 be?As an economics student your budget for meals at the university is Rs 12,000 and you have two options during the course of you studies: (i) Eating at the university cafeteria for Rs 40 per meal(ii) Eating at the dining hall for Rs 10 per meal. A) Draw the budget constraint showing the trade-off between cafeteria and dinning hall meals, with cafeteria meals on x-axis and dining hall meals on y-axis. Assume you spend equal amounts on both goods, draw an indifference curve showing the optimum choice. Label the optimum as point A. (2 Mark)What is the the total utility of consuming five units of the B good? What is the total utility of consuming three untis of the A good?