Distinguish between economics and political economy.

Q: Two investments involving a virtual mold apparatus for producing dental crowns qualify for different…

A: Investment A: Cost = $54,900 Time = 9 years Annual operating cost = $150,000 3 year property class…

Q: Consider a market with two firms, Target and Wal-Mart, that sell CDs in their music department. Both…

A: Target dominant strategy is to pick a price of $13.

Q: The article discussed the potential of Iraq as a major oil supplier. Draw a hypothetical demand and…

A: The markets are the place where the buyers of various different goods and services tend to meet and…

Q: Q5. Jason is running a cleaning business, there are available labours (L) and machines (M) for Jason…

A: Production function refers to the functional relationship between the given factors' input and…

Q: Following up on the preceding question, instead of assuming Ming has "standard-looking indifference…

A: The income effect outweighs the substitution effect for inferior goods. When the price of a good…

Q: An alliance where two firms create and co-own a separate entity is called Group of answer choices…

A: A joint venture is a type of corporate partnership in which companies decide to pool their resources…

Q: (47). If the federal budget were balanced annually O. monetary policy would become the chief tool…

A: Since you have asked multiple question, we will solve the first question for you . If you want any…

Q: What contemporary leadership perspective represents the direct opposition to transformational…

A: Leadership can be defined as the ability to persuade a group of people to follow a vision or set of…

Q: Coffee and tea are substitutes in consumption. If there is a DECREASE in the price of coffee, aming…

A: When two goods are substitutes in consumption, both goods yield almost the same level of…

Q: A soap company sold 250,000 soaps for which the variable cost of manufacture was $4.20 per soap.…

A: The answer is as follows:-

Q: What is the GDP growth rate? What is GDP per capita growth rate? What is the productivity growth…

A: Definition of. GDP per hour worked. GDP per hour labored is a degree of hard work productivity. It…

Q: Which of the following is NOT an example of a coordination game? deciding whether to grow tomatoes…

A: Coordination game: in this game players gets the maximum profit when all selects same course of…

Q: $20,000 for 5 years @ 2.25% annual interest, compounded quarterly.

A: Compounded Quarterly "it is the compound interest payable based on 3 months compounded and it is…

Q: On a diagram, represent graphically the Average Total Cost (ATC). Discuss this shape by fully…

A:

Q: Consider an economy described by the following equations: C = a + b(Y – T) | = cY – di + e Md = fY –…

A: Answer;

Q: Suppose Ming spends his entire income on two goods, X and Y, has "standard-looking" indifference…

A: If the price of X decreased and even then the demand for Y remains unchanged then,

Q: Can someone explain to me what is the difference between deriving a demand curve for perfect…

A: A demand curve is a plot of the relationship between the price of a product and the quantity…

Q: Tesla article: Bringing all aspects of Tesla production under one roof will allow Musk to take…

A: Economies of scope  Economies of scope refer to the unit cost of the product to produce will…

Q: Explain the craft union model, industrial union model, and demand enhancement model. Give examples…

A: Unions are groups of employees from similar areas that band together to promote the common good of…

Q: Consider the exchange rate between U.S. Dollar and Mexican Peso: USD/MXN. Initially, the supply…

A: Exchange rate refers to the rate at which the currency of one nation can be exchanged to another.…

Q: Vertical integration involves deciding whether to "make or buy." Group of answer choices   True…

A: When faced with the decision of making or buying a product, a make-or-buy decision must be made. A…

Q: Firms compensate workers with "benefits" in addition to wages and salaries health insurance. Suppose…

A: Note - As per guidelines we answer three parts at one time. Kindy reposts the other parts.   a.…

Q: The 5G smartphone market is expanding rapidly recently. Due to the advancement of technology, the…

A: Demand: It refers to the goods and services that are demanded by the people. More demands show more…

Q: 2. In a closed economy with no government, a $1 billion increase in initial spending leads to a $5…

A: Given: Increase in total spending-$1 billion Increase in total income-$5 billion

Q: The government has the ability to influence the level of output in the short run using monetary and…

A: To stabilize the economy, fiscal and monetary policies are typically combined. Assume that a…

Q: For the first eight questions on this assignment, consider an economy that has only two banks, Bank…

A: Currency Ratio is defined as the proportion of cash held with respect to the demand deposits.  It is…

Q: Q3. Suppose the market wage is w, Tom's parents give him N dollars per month, and Tom has T hours…

A: Time may be roughly divided between time spent on eating, sleeping, caring for others, playing,…

Q: A firm sells bagels for £0.51 each. With 6 workers the firm produces 42 dozen per hour, and with 7…

A: We have Price of product, P=.51 and there are different level of production with different amount of…

Q: (a) Suppose real GDP per person falls during a devastating recession, which in turn causes…

A: GDP: The gross domestic product, or GDP, is a measurement of the total value of all products and…

Q: Define total factor productivity (TFP). Show how to use the production function to estimate the TFP…

A: Production function, in the study of economics, helps in establishing a relation between maximum…

Q: Given the following information for a small open economy: C = R1 000 + 0,2Yd, The government…

A: An open economy is one in which product trade involves not only domestic but also international…

Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

A:

Q: 17. There are two firms selling smartphones (oligopoly market), Firm A and Firm B. Each can set…

A: We have 2×2 prive game between two players.

Q: Total Output 1 Marginal Revenue Average Total Cost Marginal Cost Price $100 80 60 $100 $100.00 $30 2…

A: A monopolistic produces output such that MR=MC

Q: Question 4 If-the US has the capacity to produce more apples and more oranges than Mexico, then…

A: When two or more countries are open to trade, they can make export or import of goods and services…

Q: Suppose the elasticity of demand equals -0.5. If a company decreases prices by 10%, quantity…

A: Elasticity of demand measures the responsiveness of  quantity demanded to changes in price level.

Q: Average Average Fixed Variable Output 1 Cost Cost $50.00 25.00 $100.00 2 80.00 3 16.67 66.67 4 12.50…

A: Cost refers to the all the expenses and expenditure that incur in a process of production of goods…

Q: Advertisement-free radio broadcasting is a non-excludable public good. The following table shows…

A: Perfect competition refers to the condition of the market where complete information is available…

Q: The following table contains nominal GDP and the GDP deflator from FRED" for the fourth quarter of…

A: Real GDP is the GDP which represent the inflation adjusted price of the goods and services , so here…

Q: Calculate the tax rate if the tax amount is $ 64.50 on a purchase of $780?

A: Tax rate results in deadweight loss as socially efficient quantity is not produced with tax.

Q: A new country has been established on the moon and created a currency called cheesybits. Which of…

A: Answer: A transaction will be called a foreign exchange transaction if buyers and sellers are from…

Q: Diminishing marginal product suggests that the marginal a. cost of an extra worker is decreasing O…

A: Law of diminishing marginal productivity states that the marginal production from the additional…

Q: Consumers' surplus is the difference between the price O a. sellers receive for a good and the…

A: When it comes to markets, the total surplus represents the complete well-being of all participants…

Q: Assume that you buy a 1-year, 170,000-peso Philippine bond that pays 7 percent when the exchange…

A: Invested amount = 170000 pesoExchange rate, 1 Canadian dollars = 40 pesosInvestment amount in…

Q: 5. Suppose the market is perfectly competitive. The market equilibrium market price P = $20. A…

A:

Q: As the quantity produced increases, then a. variable cost always decreases b. average fixed cost…

A: Total cost is defined as the sum of all exposed being incurred by the producer in order to producer…

Q: Riley runs a successful restaurant chain. However, she is running into a problem whereby some of her…

A: Answer: It is given that where the kitchen staff gets a higher salary there is no shortage of staff…

Q: You have a house worth 300,000. A fire will burn everything to the ground and leave $0 in value.…

A: There are two states fire and no fire with probability .05 and 0.95 respectively.

Q: Marginal cost tells us a. the amount fixed cost rises when output rises by one unit O b. the…

A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…

Q: Consider a portion of the demand for eggs. Quantity Demanded (in dozen) Price per Dozen (in pesos)…

A: Price elasticity of demand states thatpercentage change in quantity demanded due to percentage…

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.