An economy has three sectors: manufacturing, underwater basket weaving, and energy. Manufacturing sells 30% of its output to underwater basket weaving, 30% of its output to energy, and keeps the rest. Underwater basket weaving sells 10% of its output to manufacturing, 80% of its output to energy, and keeps the rest. Energy sells 40% of its output to manufacturing, 35% of its output to underwater basket weaving, and keeps the rest. If the economy is in equilibrium, and the value of energy is $8,500,000,000, find the value of underwater basket weaving. You are encouraged to use Octave for this problem. Your answer should be exact so use "format rat."
Q: During the course of a year, the labor force consists of the same 1,089 people. Of these, 16 lack…
A: Unemployment rates are key measures of the labor market's health. They show the fraction of the…
Q: 2. Economic growth determinants Which of the following are true of capital as a determinant of…
A: Economic growth is the expansion of the economy over a period of time. It is measured by the total…
Q: Suppose that an economy begins in equilibrium at E, as depicted in the graph to the right. Assume…
A: Aggregate Demand (AD) is the entire demand for products and services in an economy at a specific…
Q: The price elasticity of demand measures
A: The price elasticity of demand is a measure used in economics to show the responsiveness, or…
Q: Assume that the following asset values (in millions of dollars) exist in Ironmania: Federal Reserve…
A: Like other countries' central banks, the Federal Reserve System has introduced money supply measures…
Q: (Figure: Determining Surplus and Loss) In the graph, if the government sets a minimum price of $12,…
A: Market equilibrium refers to a scenario at which the quantity demanded is equal to the quantity…
Q: Duncan Multinational Corporation is a global manufacturer and distributor of household appliances.…
A: Business economics requires making decisions and allocating resources in complex market scenarios.…
Q: max ixf exp(-pt)u(c(t))dt, subject to initial capital k(0) and law of motion of capital given by…
A: Think about the ideal control issue with the accompanying goal capability, starting capital, and law…
Q: Assume the following to answer the following questions: C= 1000+ .9 (Y-T) Tax rate = 0.1Y Imports…
A: In, this question we are given that,Consumption= 1000+ .9 (Y-T)Tax rate = 0.1YImports =…
Q: Consider an economy with two people, Li and Carlo, and two commodities, clothing and food.…
A: In Pareto efficiency, sources are allotted in this sort of manner that they're fully utilized and…
Q: a. Bees produce benefits not just for the beekeeper but also for surrounding farms through…
A: A positive externality occurs when an action undertaken by one party (individual, firm, etc.)…
Q: Suppose that, in an attempt to entice citizens to conserve energy, the government enacted…
A: Price Elasticity:Price elasticity refers to the responsiveness of the quantity demanded of a good or…
Q: Labour Market Flows Consider the labour market model studied in class. Recall that the law of motion…
A: The objective of the question is to understand the dynamics of the labour market model and how…
Q: Create an o riginal graph in equilibrium like the one in the last problem. Label everything,…
A: Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: the equilibrium quantity of good A and leave the equilibrium price unchanged if OA. the supply curve…
A: The question addresses the impact of an increase in the demand for good A on the equilibrium…
Q: Consider the market for bolts. Suppose that a hardware factory dumps toxic waste into a nearby…
A: Social marginal cost:The total of the marginal external cost and the private marginal cost is the…
Q: Suppose the following list of events describes all of the economic activity resulting from an…
A: Economic activity encompasses the entirety of exchanges concerning the creation, dissemination, and…
Q: Give a utility function representing satiation preference.
A: A utility function represents a consumer’s preference ordering over a set of goods and services. The…
Q: In the following diagram, the market is in disequilibrium at point A, with a (shortage or surplus)…
A: A demand curve slopes downwards from left to right due to a negative relationship between price and…
Q: The base year is 2009. Your nation's GDP is $1,000 billion. The amount of inflation between 2009 and…
A: Understanding GDP and Inflation:1. GDP (Gross Domestic Product):Definition: GDP represents the total…
Q: 4 ns) 80 Tahiti 400 Milk (gallons) Honey (gallons) 540 0 Bora Bora 360 (gal ure 2-10 shows the…
A: Bora Bora can produce 360 gallons of milk and 540 gallons of honey.To calculate the opportunity cost…
Q: budget constraint
A: A budget constraint represents the diverse combinations of products and offerings that a consumer…
Q: Krissy spends all her income on holiday lights (L) and fishing bait (B). Lights are priced at $2,…
A: The utility funciton is The marginal utility of L is The marginal utility of B isThe price of lights…
Q: Consider the market for natural gas, depicted in the figure to the right. Suppose a price ceiling of…
A: The equilibrium price is the market price at which the quantity of a good or service supplied equals…
Q: QUESTION 7 Which is NOT true about the coefficient of determination? As you add more variables, the…
A: The problem is to identify the statement that is NOT true about the coefficient of determination in…
Q: Has the price of natural gas fallen or risen over the recent past and what affect does this have on…
A: The recent trajectory of natural gas prices is a pivotal factor in shaping economic dynamics.…
Q: Consider the figure to the right, and suppose that the initial point is A. Explain why a decrease in…
A: The approach proposed in the question is based on consumer theory, namely the Law of Demand and the…
Q: International Finance and the Exchange Rate - End of Chapter Problem In June 2018, the United States…
A: Given,In 2018,
Q: Elasticity. -End of Chapter Problem The accompanying table shows the price and yearly quantity of…
A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…
Q: A firm sells its output Q for a price of p=1. It pays a fixed wage w to its single worker. Its…
A: It is given that a firm sells its output at a price (p) of $1 per unit. It pays its workers a fixed…
Q: Based on the interest rates and cash flows shown in the cash flow diagram, determine the value of…
A: The cost of financing or the return on investment, represented as a proportion of the principal…
Q: Consider the small economy of Moonstan and the steel industry which is characterized by perfect…
A: Autarky equilibrium denotes a situation where a country independently produces and consumes goods…
Q: A complete Credit policy and procedures document should include which three key areas. Write a…
A: A comprehensive Credit Policy and Procedures document encompasses three key areas critical to…
Q: Finding Nash Equilibria Consider the following two player, normal form game: L (2,1) (-2,-2) U M D…
A: We have the following payoff matrix:LCRU(2,1)(2,-1)(-1,1)M(-2,-2)(1,2)(0,0)D(3,1)(0,0)(-1,-1)To…
Q: Write out the equation for desired national savings. What changes to desired national saving and…
A: The equation for desired national savings (S) depends on whether you're considering a closed or open…
Q: Question 39. Consider the graph below. Which of the following occurrences will shift the supply of…
A: The supply of bonds refers to the financial markets alludes to the aggregate sum of bonds that are…
Q: GDP Consumer Spending Taxes Minus Transfers Government Purchases. $8.5 trillion $5.2 trillion $1.5…
A: The question's underlying notion is the basic national accounting identity in a closed economy, in…
Q: Based on this model, firms earn revenue when households purchase goods and services in markets for…
A: Circular flow: The generation of money during production, its distribution among the various…
Q: the cooperative outcome-
A: Yes, the pricing decision facing Alpha and Beta is a Prisoner's Dilemma. This is because:There are…
Q: You are the manager of a firm that receive own price elasticity of demand for product How much will…
A: The elasticity of demand determines how sensitive the quantity demanded of a good or service is to…
Q: a. Identify and explain three instances where governments may intervene in trade that are relevant…
A: This can be described as a form of market in which no single producer or consumer has the power to…
Q: Suppose that a market is described by the following supply and demand equations: QS = 2P QD = 180-P…
A: A market is said to be in equilibrium when the market demand is equal to the market supply. At the…
Q: representation of the demand for CDs must be
A: For the provided question, the law of supply is explained and a graphical representation of the…
Q: Assume that the amount of dollar (domestic) assets is fixed in the foreign exchange market. Explain…
A: The objective of the question is to understand the impact of an increase in domestic interest rates…
Q: The graph below depicts the demand for bagels. Which of the following events would result in the…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: Suppose the market below is in equilibrium. How much would consumers benefit on net from…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve.The…
Q: 3 tries left Suppose instead that China's real GDP growth turns out to be 6.9 percent per year for…
A: Real GDP is an inflation-adjusted calculation that analyses the rate of all commodities and services…
Q: Duncan Multinational Corporation is a global manufacturer and distributor of household appliances.…
A: Economic analysis is the methodical way to deal with determining the optimum utilization of scarce…
Q: Which of the combinations below correctly complete the following sentence: "If large silver and…
A: This question involves understanding the impact of the discovery of large silver and copper deposits…
Q: a. Calculate the equilibrium price and quantity of cigarettes. In an effort to decrease cigarette…
A: The question addresses the microeconomic notions of market equilibrium, taxes, and externalities in…
Step by step
Solved in 3 steps with 7 images
- Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 15% of its output to Lumber, 50% to Energy, and retains the rest. Lumber sells 15% of its output to Mining, 50% to Energy, 15% to Transportation, and retains the rest. Energy sells 20% of its output to Mining, 15% to Lumber, 20% to Transportation, and retains the rest. Transportation sells 10% of its output to Mining, 15% to Lumber, 40% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation Purchased by: Mining Lumber Energy Transportation (Type integers or decimals.)Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 15% of its output to Lumber, 60% to Energy, and retains the rest. Lumber sells 10% of its output to Mining, 60% to Energy, 15% to Transportation, and retains the rest. Energy sells 20% of its output to Mining, 20% to Lumber, 25% to Transportation, and retains the rest. Transportation sells 20% of its output to Mining, 15% to Lumber, 60% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Mining Distribution of Output from: Lumber Energy Transportation Purchased by: (Type integers or decimals.) Mining Lumber Energy TransportationSuppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 60% to Energy, and retains the rest. Lumber sells 5% of its output to Mining, 60% to Energy, 25% to Transportation, and retains the rest. Energy sells 30% of its output to Mining, 15% to Lumber, 25% to Transportation, and retains the rest. Transportation sells 25% of its output to Mining, 15% to Lumber, 50% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation (Type integers or decimals.) Purchased by: Mining Lumber Energy Transportation
- Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 10% of its output to Lumber, 60% to Energy, and retains the rest. Lumber sells 10% of its output to Mining, 50% to Energy, 15% to Transportation, and retains the rest. Energy sells 30% of its output to Mining, 20% to Lumber, 30% to Transportation, and retains the rest. Transportation sells 25% of its output to Mining, 20% to Lumber, 40% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below. Distribution of Output from: Mining Lumber Energy Transportation Purchased by: Mining Lumber If PT = $100, then PM = $. PL = $, and PE = $. (Round to the nearest dollar as needed.) Energy Transportation (Type integers or decimals.) b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and Transportation sectors by PM, PL, PE, and PT,…An economy consists of coal, electric, and steel industries. For each $1.00 of output, the coal industry needs $0.03 worth of coal, 50,30 worth of electricity and $0.30 worth of steat the electric industry needs $0.03 worth of coal, $0.04 worth of electricity, and $0.04 worth of steel; and the steel industry needs $0.20 worth of coal and $0.01 worth of steel. The sales demand is estimated to be $2 bilion for coal, $2 billion for electricity, and $3 billion for steel. Suppose that the demand for electricity triples and the demand for coal doubles, whereas the demand for steel increases by only 50%. At what levels should the various industries produce in order to satisfy the new demand? Set up the input-output matrix. Coal Electric Steel Coal Electric Steelmany countries produce a single good upon which much of their economy depends. That good might be coffee or wool or oil. How might a production possibilities curve help economists in such a country determine how to diversify their economy
- Consider an economy of four sectors, Agriculture, Energy, Manufacturing, and Transportation. Agriculture sector sells 12% of its output to Energy, 35% to Manufacturing, 25% to Transportation and retains the rest. Energy sector sells 30% of its output to Agriculture, 30% to Manufacturing, 15% to Transportation and retains the rest. Manufacturing sector sells 30% of its output to Agriculture, 27% to Energy, and retains the rest. Transportation sector sells 20% of its output to Agriculture, 10% to Energy, 30% to Manufacturing and retains the rest. a. Construct the exchange table for this economy. b. Write down the system of linear equation that leads to prices at which each sector’s income matches its expenses, and solve these equations by Gaussian method to find these prices.Consider a simple economy of Korea - producing two goods, Motor bike and milk. The details ofthe economy and its production is as follows: Motor Bike (1000 / year) Milk (1000 gallons per year) 0 601 502 303 0 d) According to the (BGH) technology, farmers can now get double the amount of milk fromcows easily. In terms of PPF, this means Korean economy can now produce twice milk ateach level of bike output. With the current production of 2000 motor bikes, Mr. B claimsthat this new technology can allow this economy to produce more milk and more bikes. Doyou agree with this statement or not?e) Explain carefully, with the help of diagram and justify your answer.SMARTPHONES (Millions) 40 20 0 PPF 0 40 60 CORN (Millions of bushels) Which of the following is true regarding this economic model? O In order to construct such a model, an economist would need real life data regarding countries that produce only two goods. O The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. O This PPF is not an economic model. O The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. 20 80 100
- Suppose that Russia produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week. Suppose that India produces 10657 barrels of oil and 10657 bushels of wheat each week. In autarky, what is the largest amount of wheat Russia can consume every week? amount of wheat per week: What does the term autarky refer to? O a major argument against globalization government policies meant to reduce international trade the process of negotiating terms of trade between two countries a situation where one country does not engage in trade with other countries bushelsSuppose that United States produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week. Suppose that China produces 14329 barrels 14329 barrels of oil and 14329 bushels 14329 bushels of wheat each week. In autarky, what is the largest amount of wheat United States can consume every week? amount of wheat per week:___________ bushels What does the term autarky refer to? a. a major argument against globalization b. a situation where one country does not engage in trade with other c. countries d. the process of negotiating terms of trade between two countries e. government policies meant to reduce international tradeQuestion 1: A company makes two types of calculators, one that uses batteries and one that is solar powered. The production of each battery-operated calculator involves 1 hour on Machine A, 2 hours on Machine B, and 1 hour on Machine C. The production of each solar powered calculator involves 2 hours on Machine A, 1 hour on Machine B, and 1 hour on Machine C. The company can use Machine A for a total of 14 hours, Machine B for a total of 20 hours, and Machine C for a total of 9 hours. If the company can earn a profit of $3 for each battery powered calculator and $8 for each solar powered calculator, how many of each should it produce to maximize profit? What is the maximum profit it can earn? Question 2