5. An economy has two industries: services and manufacturing. To produce $1 of services requires 20c of services and 40c of manufacturing. To produce $1 of manufacturing requires 30c of services and 10c of manufacturing. (a) If there is an external demand for $900 of services and $1500 of manufacturing, how much of each industry should be produced to meet it? (b) Find the internal consumption when demand is met. fitoble
Q: An open economy interacts with the rest of the world through its involvement in world markets for…
A: As a buying manager, you now pay $1,500,000 for tea shipment.
Q: 3. We are compon operatin MARR calculati
A: * ANSWER :- (3)
Q: How to evaluate the net economic change brought about by an event?
A: Economic Impact:- The entire proportion of total money flowing into a specific region as a result…
Q: When people share ownership of land with the right of survivorship they own the land as
A: When people share ownership of land with the right of survivorship then this implies land has more…
Q: If the Long Run Price in a perfectly competitive market is 5 and the market demand is Q=50-P and if…
A: A perfectly competitive firm is a price taker, i.e., it takes the price set by the market forces and…
Q: Give an example of a good or service that should not be allocated entirely by a free, unregulated…
A: Under the free market system the demand and supply forces decide the types of goods and services…
Q: When describing the Herfindahl-Hirschman Index (HHI) in class, one slide suggested, “Weight each…
A: Herfindahl-Hirschman Index (HHI) is used to determine market competitiveness before and after Merger…
Q: Determine the value of the maximum profit. O A. BD53,000 O B. BD52,500 O C. BD55,000 O D. BD48.000
A: Profit maximization refers to the level of sales at which profits are maximized.A typical firm's…
Q: q/basket TC $40 55 2. 65 3 72 4 81 93 6. 109 131 8. 159 6. 194 10 235 If the farm sells a basket of…
A: A firm maximizes profit by producing at a level where price is greater than or equal to marginal…
Q: What the equation used by the Fed to determine the short-run demand for M2 is?
A: In addition to everything that M1 includes, M2 also includes other types of deposits. M2 includes,…
Q: Plastics, Inc. and Joe's Canoe Shack both operate businesses located on the river. Plastics, Inc.…
A: Given:- Marginal cost of cleaning pollution=$12000 Marginal benefit=$20,000 To calculate:- Part a, b…
Q: Describe the current merger trends and how they affect the businesses involved and their…
A: Merger is defined as the process through which one business organization's corporate unit,…
Q: What do you see as the biggest difference between market and non-market economies?
A: Market economy is run by private people. There is private ownership of factors of production in…
Q: Suppose the MPC is 0.6. Beginning from equilibrium, investment demand rises by 30. (a) How much does…
A: Here, given information is, MPC=0.6 Change in investment demand=30 To find: change in total output…
Q: 2. The next graph illustrates a market. Choose and circle one type of externality from the potential…
A: When there is a presence of positive externality, the production of the good generates external…
Q: After easing the Covid-19 restrictions. Has the UK economy been experiencing more of a demand-pull…
A: The world has been rising in recent years. This is due to a surge in aggregate demand as the global…
Q: Describe how the following firms could implement price discrimination (or an advanced pricing…
A: Price discrimination is a business technique that involves charging clients various rates depending…
Q: Please refer to the figure below. The equation for p = 105-0.005D 25,000+65D w Y D (units sold) How…
A: The quantity of a product that customers are ready to purchase and able to acquire at a given price…
Q: 2. The utility function of a consumer who consumes quantities x and y has the utility function…
A: Utility function gives the relation between the different quantities of two or more goods through an…
Q: In the Keynesian theory, money wages do not fall response to a decrease in aggregate demand . a.…
A: Keynes always believed in the notion of sticky price. Here sticky prices include nominal wages. In…
Q: Suppose Kim has determined that a $100,000 universal life insurance policy would best suit her…
A: Hi! thanks for the question but as per the guidelines, we answer only three parts at one time.…
Q: apital structure is ________. Question 1 options: A) a statement of the financial position of…
A: The chances of growth of a company are greater when the economy runs in a good condition while its…
Q: A real appreciation means that domestic goods become more expensive relative to foreign goods.…
A: Appreciation and depreciation of a currency refers to the rate at which the currency of one country…
Q: How does managerial economics help to assess operational issues faced by private business firms.
A: The economics that involves the application of economic methods in process of decision making and…
Q: Explain Four (4) effects of inflation to a countries economy.
A: Inflation is the macro-economic concept to explain a hike or a rise in the general market price of…
Q: On the day his son was born, a father deposited to a trust company a sufficient amount of money so…
A: A lender charges a borrower an interest rate that is a percentage of the principal (the amount…
Q: According to Brozen, which of the following groups benefitted from monopoly returns in the shipping…
A: Brozen has authored a book in which he has discussed in detail the groups that are benefitted from…
Q: 60 50 40 30 20 10F 2 3 4 5 Number of Workers Employed per Week Refer to Figure 7-1. If this figure…
A: Marginal product of Labor refers to additional output that results from hitting one more unit of…
Q: Use the information in Table 1 to complete the chart. Enter the FORMULA you will use to calculate…
A: 1. Exchange rate january, $1 = 4.5 Polish Zlotysso, 1 Polish Zlotys = 1/4.5 = $0.22Thus, Combo meal…
Q: Consider a town in which only two residents, Sam and Teresa, own wells that produce water safe for…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Suppose the desired reserve ratio in Canada is 15%. Assume that the Bank of Canada has decided to…
A:
Q: A sharp stock market decline increases moral hazard incentives 1) since lending firms have less to…
A: Financial Crisis is the major disruption in the market which is expressed by decline in the prices…
Q: Economically, the U.S government is not concernedwith whether or not small businesses make it.
A: Small enterprises are the lifeblood of almost every economy on the planet. These business operate…
Q: Budweiser Low Medium High Low 120, 90 115, 100 90, 70 Miller Medium 100, 70 130, 60 60, 50 High 90,…
A: This is a two player game.
Q: When money serves as a mechanism for transforming current income into future purchases, it is…
A: Money is a financial asset which is used to buy goods and services
Q: Discuss two (2) cases of price elasticity of demand. Use diagrams to motivate your answer
A: Price elasticity of demand Elastic demand is a term used to describe a situation in which demand…
Q: To maximize profits, firms produce the level of output that: O a. equates total revenue and total…
A: Output level is determined at the point where the firm maximize it's profits.
Q: Currency $150 billion $400 billion $1,200 billion $2,400 billion Bank reserves Checkable deposits…
A: The money supply basically refers to the quantity of money that is available for immediate use in a…
Q: For a perfectly competitive firm in short-run equilibrium, if the price is between AVC and ATC,…
A: A perfectly competitive firm is price taker as it is one of many firms producing identical goods.
Q: Consider an equilibrium of a single product market jointly determined by a supply function q* = a, +…
A: Given, Supply function : q*=ao+a1*p*+UDemand function : q*=β0+β1*p*+Vwhere q* is the equilibrium…
Q: If Brexit measures and Covid-19 restrictions result in a recession then how can the UK government…
A: * ANSWER :- From the given information the answer is provided as
Q: Suppose the desired reserve ratio in Canada is 10%. Assume that the Bank of Canada has decided to…
A: Each commercial bank has to keep a certain portion of its demand as a reserve, and what portion of…
Q: A A company needs special machine for checking the temperature of the production machines, the…
A: The information being given is as follows:- N = 40 F = 3000 P = -11,000 I = 3%
Q: Which is an example of a check Congress has on the judicial branch? a. reducing salaries of…
A: Which is an example of a check Congress has on the judicial branch? Correct Answer: (c) approving…
Q: Currency $150 billion Bank reserves $400 billion $1,200 billion $2,400 billion $60 billion Checkable…
A: * SOLUTION :-
Q: Behind the Supply Curve: Inputs and Costs – End of Chapter Problem Consider Daniella's…
A: In the short run, at least one of the factors of production is fixed and in the long run, all of the…
Q: If the appropriate discount rate for this project is 14%, then the net present value (NPV) is…
A: Given interest rate = 14% Present value of each cash flow = cashflow /(1 + rate)^time For year 0 =…
Q: A simple and convenient first choice to explain the behavior of firms is through the profit motive.…
A: For every type of firm in a competitive market, the profit maximization is an important aspect to…
Q: Problem 1: Labor-Leisure Choice. Kim has utility over consumption c and leisure represented by U (c,…
A:
Q: Consider a self employed worker who owns a firm that produces output q which sells for a price of p…
A: Answer-
Step by step
Solved in 2 steps
- 6. Climate change and externalities. How is the issue of climate change related to the concept of externalities? What is the externality? What are the relevant markets? b. Provide an example of a market that features this externality. Assuming there is no intervention to correct for the externality, compare the market allocation to the efficient allocation. Does the market produce too much? Too little? Is the market outcome efficient? а. c. What is the relationship between the marginal private cost of production in this market and the marginal social cost? Explain. d. Suppose you wanted to come up with an estimate of the magnitude of the marginal external cost (in dollars). What would this number represent? What sort of information would you need to determine this number?5. What are economic benefits of using biodegradable plates? Explain.?.Draw a production possibility frontier. The vertical axis shows theproduction of public sector goods and the horizontal axis showsproduction of private sector goods. The economy is currentlyproducing at point A on the frontier where 50 per cent of allproduction is devoted to public sector goods and 50 per cent toprivate sector goods.(a) Mark the following points on your drawing.(i) Point A.(in) Point B which shows production following the election of agoverment which increases government spending on botheducation and the National Health Service.(ili) Point C where unemployment is present in the economy.(iv) Point D where the government takes over production of allgoods and services in the econory.(b) Draw another diagram putting on it the original productionpossibility Frontier you drew for (a), labelling it AA.(i) Draw a new production possibility frontier on the diagram,labelling it PP, which shows the position after a devastatingwar has hit the economy.(in) Draw another PPF…
- 1. The Ministry of Works and Supply has plans to construct a network on roads and tollgates in Vubwi District. Its permanent Secretary presents this plan to cabinet asking for approval and argues that although the project costs a lot of money at present, it will yield very significant benefits for the next 20 years. He presents the following summary of costs and revenues shown in Table 1. Table 1 Summary of costs and benefits for proposed road project Year of activity (million Activity Road Construction Resurfacing of road Resurfacing of road 0 5 10 15 Resurfacing of road Collection of toll gate From year 3 to year fees 20 Costs ZMW) 400 5 7 10 Benefits (million ZMW) 10 annually (once tollgates are operationally) The government currently spends ZMW 3million annually on resurfacing the gravel roads and patching up the few dilapidated bituminous roads in Vubwi district. (a) Using a discount rate of 10%, conduct a cost-benefit-analysis, and advise the cabinet accordingly. (b) Briefly…3. In recent years, the most important factors in reducing CO2 emissions have been a. population and GDP per capita. b. energy use per person and CO2 emissions per goods sold. c. energy efficiency and CO2 produced per energy used. d. all of the above.3. What is NOT a source of market failure related to EXCESSIVE spatial size of city (urban sprawl)? a. Failure to take the amenity value of open space into account b. Traffic congestion c. Unequal tax burden for infrastructure for suburban development between central and suburban residents d. Sorting of rich and poor income households by residential location
- 4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing.s and Thus, the visual appearance would For the students of the college, the visual appearance of the campus is be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $2,040. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 420 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $12. The benefit of the beautification initiative, as suggested by the survey, is $ Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of the beautification…1.- What is the expected result on total energy consumption (quantity) when there is an increase in energy efficiency? 2.- Explain the gov incentive/price control that causes demand curve to shift back (left) What is resultant market Price & Quantity?4. Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to melting of sea ice. The following table lists some potential regulations targeting the amount of airborne carbon dioxide. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Tradable Permit System Public Policy The government limits total carbon-dioxide emissions by all factories to 260,000 tons per five years. Each individual factory is given the right to emit 230 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $440 to any citizen who plants a tree. The government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. The government charges…
- 5. An ecological efficiency of 10% in a marine ecosystem means that energy consumed at one trophic level is not passed on to the next higher trophic level. of the a. 10% b. 80% с. 90%3. many areas of the country, aquifers (pools of underground water) serve as the primary water source. Water is extracted from the aquifer using wells and is replenished by rain and rivers. In many places the water is being extracted from the aquifers faster than it is being replenished, causing wells to run dry and farmers to have insufficient water for their crops. To address this, farmers in Kansas have all mutually agreed to reduce their usage of water. After reaching this agreement, each farmer must decide whether to follow the agreement. Assume that if everyone chooses a low level of production, all farmers will have enough water for the entire season. If a farmer chooses a high level of production, they will have more crops to sell but it will reduce the water available (and therefore the crop quality) for all farmers. Specifically, the farmers are faced with the decision shown in the images. a. If the game is played only one time, characterize each farmer’s best strategy.b.…MSC 10 4 MSB 100 200 300 400 500 600 Quantity (dozens of doughnuts per day) 18) The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. There is no external benefit. What is the marginal benefit to the citizen of Kaffenia who consumes the 100th dozen doughnuts each day? [5 POINTS] A) $10.00 per dozen B) $8.00 per dozen C) $6.00 per dozen D) $4.00 per dozen 19) The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost to the economy of Kaffenia of producing the 100th dozen doughnuts each day? [4 POINTS] A) $10.00 per dozen B) $8.00 per dozen C) $6.00 per dozen D) $4.00 per dozen Marginal cost and marginal benefit (dollars per dozen)