Consider a prosperous open economy such as Singapore. If Singapore’s saving rate (gross domestic saving as a % of GDP) is 25%, while its investment rate (domestic investment as a % of GDP) is 20%, the economy will experience a trade surplus, meaning that receipts from exports exceed expenditure on imports. Your answer: [True/False/Uncertain and explain why]
Q: a) Plot the best response functions and report the Cournot-Nash equilibrium quantities, price and…
A: The Cournot competition, is a type of oligopoly where two firms compete with each other by choosing…
Q: A consumer has income of $15,000. Pillows costs $35 per pillow, and soda costs $70 per bottle. a.…
A: Given, Consumer income= 15000 dollars Price per pillow = 35 dollars Price per soda bottle = 70…
Q: Using the above graph, the equilibrium wage that the firm will pay is A W1. B D E W2. W3. W4. W5.
A: The demand curve is the downward sloping curve. The firm will hire the resources where the marginal…
Q: . True or False; Please explain 2. IEPR applies to any firm facing a downward-sloping demand curve…
A: The IEPR is a pricing strategy that asserts a firm should set the price of its product in such a way…
Q: Output per hour 0 1 2 3 4 5 Total Cost $ $ $ $ $ $ 1,000 1,200 1,600 2,200 3,000 4,000
A: We have to subtract total cost from total revenue to measure maximum profit
Q: Refer to the figure at right. The shift in the marginal cost curve implies O A. a decrease in the…
A: The marginal cost refers to the change in the total cost that occurs when the quantity will be…
Q: The value of the market basket in 2005 is 475.00 and in 2007 is 1400.00. What is the 2005 CPI, if…
A: CPI refers to the total expenditure made in a particular year by the consumers of the economy. It…
Q: 1. The Present Discounted Value (PDV) of a future stream of payments is ______________________ the…
A: Present Discounted worth (PDV) is a financial concept that depicts the worth of a future stream of…
Q: Consider the model of limited commitment that we learned in Chapter 10. In particular, the loan from…
A: The model of limited commitment is a situation where individuals or firms are unable to make binding…
Q: a) The price per unit of consumption is 1, the hourly wage is w, and the worker has a non-labor…
A: Consumption: Consumption refers to the goods and services that a person uses to satisfy their wants…
Q: Assume two nuclear armed countries (say the US and the Soviet Union (USSR)) are locked in a…
A: There are two players in the game : USSR & US Strategy set of US = Strategy Set of USSR = {…
Q: 3. A firm has two plants that produce identical output. The cost functions are C1₁ = 20q-8q² + 2q³…
A: A cost function is a mathematical function that describes the relationship between the cost of…
Q: Assume the following for the economy of a country: • Consumption function: C = 60 +0.75Yd •…
A: C=60+0.75YdI=77G=53T=0.2Y-25Yd=Y-T Here C denotes consumption expenditure, I denotes investment, G…
Q: Consider the market for ethanol in the United States depicted in the figure to the right. Assume the…
A: Demand means the quantity of goods that a consumer is willing and able to purchase at a given price…
Q: 1. A market with a positive externality has a A. Marginal Social Benefit curve greater than the…
A: The externality is the external cost or benefit borne by the third party. When the external cost is…
Q: Part C) Find the marginal productivities for 25 units of labor and 1435 units of capital
A: We have the following production functions: p(x,y) = 2000x4/5y1/5 Where p(x ,y) is the number of…
Q: Assume the real interest rate is still 10%. If the firm from the previous question (question 3) can…
A: PV factor in year N = (1.10)N. PDV in year N = Cash flow in year N x PV factor in year N
Q: Suppose that a firm's production function is given by F(K,L) = given by MPK= 7|2 2 1 1 K and MPL = 1…
A: The production function determines all the input bundles that produce the same output level. The…
Q: The interest rate in Japan is 2% and the interest rate in the US is 5%. The spot exchange rate is…
A: The interest rate in Japan is 2% The interest rate in the US is 5% The spot exchange rate is 100 yen…
Q: The nature of demand indicates that as the price of a good increases: suppliers wish to sell…
A: Demand schedule is the tabular representation of quantity demanded at various prices. Demand curve…
Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT…
A: Future value is a concept in economics that refers to the value of an investment at a specified time…
Q: The federal government decides to stimulate the economy and increases government expenditure on new…
A: The main idea behind the multiplier effect is that an autonomous change in any AD component (C, I,…
Q: Calculate the Future worth, at year 7, of the following cash flow. Consider 6% annual interest rate,…
A: The nominal rate of interest r=6% compounded semiannually Since interest is compounded semiannually…
Q: Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+/q²…
A: Total cost is a sum of fixed cost and variable cost. Fixed cost doesn’t depend on quantity whereas…
Q: In the figures below, we compare Sydney's (SYD) market under its current policy for short-term…
A: Under Sydney's current policy, short-term rental platforms are allowed to operate for up to 180 days…
Q: Define the concept of region and regionalism. Write the differences between old and new…
A: A geographical area with a particular degree of uniformity in terms of physical, cultural, or…
Q: Jill took $40,000 that she had in savings and started her own business. If left in investments,…
A: Economic profit: Economic profit is a profit that considers the opportunity cost in order to…
Q: Emerging economies Emerging economies that were growing rapidly, particularly Brazil and Russia,…
A: Prices for raw materials or basic items that are sold in large quantities and utilized in the…
Q: of Price level 0 (0) Price level (4) SAS, a. (a) O b. (b) O c. (c) O d. (d) Real GDP Real GDP Price…
A: The trade-off between unemployment and inflation in an economy is represented by a Phillips curve.
Q: discuss and describe the revisions of policies to recast notions of wealth in America
A: In recent years, wealth inequality in America has become a pressing issue, with a small number of…
Q: Nash Equilibrium and Weakly Dominated Actions Give an example of a two-player strategic game in…
A: A scenario when each player in a game picks a strategy that is the optimal response to the tactics…
Q: The Present Discounted Value (PDV) of a future stream of payments is ________________ the sum of the…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Set up and solve the following nonlinear optimization problem using Excel and the Solver add-in.…
A: Nonlinear optimization deals with the optimization of a nonlinear objective function subject to…
Q: What is enacted when discontented sellers, feeling that prices are too low, appeal to legislators to…
A: Price ceiling is the price set by government which is maximum that can be charged from the…
Q: 3. Capital labor ratio is denoted by the equation K/L where K=capital and L=labor. If the total…
A: Capital-labor ratio refers to the amount of capital per unit of labor input in a production process.…
Q: After the economy moves to its new short-run equilibrium, the price level is _ than before, real GDP…
A: Aggregate demand (AD) and aggregate supply (AS) are two fundamental concepts in macroeconomics that…
Q: Give typing answer with explanation and conclusion Production function Y=8*K^.33*L^.66 Now what if…
A: Given production function is : Y = 8 K0.33 L0.66
Q: 6. Oligopolies This chapter discusses companies that are oligopolists in the market for the goods…
A: An oligopoly occurs when one or a few businesses control the market. A market is considered to be…
Q: Q Curve number 2 is the 0 1) marginal cost curve 2) marginal product of labor curve
A: Production is the art of generating goods, services, and utilities. There are a few critical aspects…
Q: 1) when do externalities occur ? (Full in-depth sentence) 2) What are some examples of effects that…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Consider a simple model to estimate the effect of factors on number of children of a women in…
A: Regression is a statistical method used to analyze the relationship between one or more independent…
Q: A firm invests $75,000 to save $9000/year in energy costs for 15 years. Formulate the equivalence…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: A local college is deciding whether to conduct a campus beautification initiative that would involve…
A: Cost-Benefit Analysis: The process of determining the best investment possibilities under the cost…
Q: Give correct typing answer with explanation and conclusion Pauli hire Hamish to build a…
A: Anticipatory breach: This is a situation where one party to a contract informs the other party that…
Q: Top Left Plot a) market without externalities b) market with positive externalities in consumption…
A: An externality refers to a situation where the production or consumption of goods or services by one…
Q: 1. Consider the following figure to answer the following four questions. (Please note that the…
A: At equilibrium price, quantity demanded equals quantity supplied for a commodity. When the price…
Q: The business cycle may hamper economic growth because it creates additional ________ for business…
A: Business cycle: The business cycle refers to the natural phenomenon in economic activity that occurs…
Q: Wild West produces two types of cowboy hats. A Type 1 hat requires three times as much labor time as…
A: Given, - If he spends all his resources on Type 2, the maximum he can produce is 600 units - If he…
Q: Suppose a snowboard manufacturer increases its output by 1 snowboard per day. As a result, the total…
A: Marginal cost refers to the increase in total cost as a result of per unit increase in production.…
Q: Consider the labor market for the fast-food industry, which consists mainly of high school and…
A: In economics, an equilibrium point refers to the state where supply and demand for a particular good…
Question 5
[Consider a prosperous open economy such as Singapore. If Singapore’s saving rate (gross domestic saving as a % of
Your answer: [True/False/Uncertain and explain why]
Step by step
Solved in 3 steps
- Question 5[Consider a small open economy such as Australia. If Australia’s saving rate (gross domestic saving as a % of GDP) is 15% , while its investment rate (domestic investment as a % of GDP) is 25%, the economy will experience a trade surplus, meaning that receipts from exports exceed expenditure on imports. (100 words)]Your answer: [True/False/Uncertain and explain why]17. Exchange rates and U.S. exports: A graphical relationship The following graph shows exports from the United States to Japan. (Note: U.S. exports are measured in yen on this graph, which will enable you to see U.S. exports on the same graph as Japanese exports in a later problem.) EXCHANGE RATE (Dollars per yen) Exports from the U.S. EXPORTS (Yen) Exports from the U.S. ? Referring to the graph, why does the line showing exports from the United States slope upward? The lower the price of the yen in term of dollars, the higher the exports from the United States to Japan. The higher the price of the yen in term of dollars, the higher the exports from Japan to the United States. The higher the price of the yen in term of dollars, the lower the exports from the United States to Japan. The lower the price of the yen in term of dollars, the lower the exports from the United States to Japan. Suppose that the exchange rate goes from $10 per 1,000 yen to $8 per 1,000 yen. On the previous…At one point Canadas GDP was 1,800 billion and its exports were 542 billion. What was Canadas export ratio at this time?
- Suppose a country has an overall balance of trade so that exports of goods and services equal imports of goods and services. Does that imply that the country has balanced trade with each of its trading partners?6-Look at a country’s Terms of Trade (T.O.T.). It is assumed that when the T.O.T. value increases the country’s wellbeing goes up, and when the T.O.T. value declines, the country’s wellbeing is reduced. Do you agree??? Explain!!! Among others you stated: “Trade between countries highly depends upon terms of trade. T.O.T. has important effects on the balance of payments or on its economic growth so the T.O.T. is used to measure the wellbeing of the country.” Further down though…you refute your previous statement by saying: “But T.O.T. should not be used to calculate wellbeing as its calculation does not show the volume of export of the country, only shows relative changes between countries….”etc.Jiz What are the effects on U.S. imports and exports when the U.S. experiences economic growth stronger than its major trading partners? Multiple Choice There will be no effect on US imports and exports. U.S. exports will increase more than U.S. imports. US imports will decrease, but U.S. exports will increase. Saved US imports will increase more than U.S. exports. Note: don't use chat bot.
- Question 8 (1 point) Listen Consider two different scenarios. In one, a small country imposes a $5 tariff on cars. In the other, a large country imposes a $5 tariff on cars. Which of the following statements regarding the new domestic equilibrium price is true? The small country's price after the tariff would be at least as high as the large country's price after the tariff. The small country's price after the tariff would be no greater than the large country's price after the tariff. The small country's price after the tariff would be equal to the large country's price after the tariff. It is impossible to tell which would be greater.PRICE (Yen per dollar) 9. Study Questions and Problems #9 The following graph depicts the supply and demand curves for U.S. dollars in the foreign exchange market. Suppose that real interest rates in the United States rise. On the graph, shift either the supply of dollars curve, the demand for dollars curve, or both curves to best reflect the given scenario. D QUANTITY OF DOLLARS (Millions per day) S D If real interest rates in the United States rise, the U.S. dollar S ?Statements. As one of the largest and most advanced countries in the world, the United States would not really benefit from trading with smaller, less developed countries. This is because the United States has the capacity to produce essentially all products in larger volumes than these countries. So in absolute terms, the United States has a larger production capacity and would only benefit from trading with other countries that can produce a certain product in higher volumes than it does.
- The graph depicts the market for oil, with the assumption that the United States can import any amount of oil it chooses at the world free trade price. Adjust the graph to reflect what happens when a 50% import tax is imposed on oil. (graph in the image) Approximately how many million barrels are imported before the tax is imposed? imported oil:_________million barrels Approximately how many million barrels are imported after the tax is imposed? imported oil:________million barrel3) State whether each of the following events involves a financial flow to the U.S. economy or away from the U.S. economy: a. Export sales to Germany b. Returns being paid on past U.S. financial investments in Brazil c. Foreign aid from the U.S. government to Egypt d. Imported oil from the Russian Federation e. Japanese investors buying U.S. real estate(a) Analyze the effects of imports on the domestic price and quantity, and the gains and losses of consumers and producers. (b) Analyze the effects of exports on the domestic price and quantity, and the gains and losses of consumers and producers.