Refer to the following table when answering the following questions. In this economy, only two goo are produced: video games and pistachios. Table 2.3: National Income Accounting 2017 2018 Quantity of pistachios Quantity of video 1,000 1,200 540 540 games Price of pistachios Price of video games $15.50$14.75 Consider Table 2.3. Using the Laspeyres index, the real GDP in 2018 is $ $1.00 $1.40
Q: suppose > has a utilitiy represtantion u such that u is homogenous of the nth pwer show > is…
A: This is not true. Take $n=2$. If you take $u(x,y)=x^2+y^2$, then $u(x,y)=u(x',y')\iff x+y=x'+y'$…
Q: 2) Please answer the following parts: A. Describe the short-run effects of a rise in oil prices. B.…
A: The answer to the above question is as follows:
Q: The slope is constant at all points on a straight line in a graph. A. True B. False Next question…
A: 1. Slope of a line is describes the steepness of a line using the changes in x and y directions.…
Q: 28 24 20 16 12 8 4 0 P D1 048 12 16 20 24 Q I 14. If a $6.00 per unit tax is imposed on this…
A: Demand and supply curve determine the equilibrium price and quantity at the point of intersection of…
Q: QUESTION 14 Using microeconomic reasoning about supply and demand, what is the most likely…
A: Solution: option-c Explanation: Option-c will be correct. The relative price can be defined as price…
Q: What can a government do to promote economic growth? Use examples to illustrate your points
A: Gross domestic product (GDP), which is the total annual value of all goods and services generated in…
Q: suppose > has an utilitiy represtantion prove transtive
A: Given : ≥ has utility reprsentation In other words, lets consider three bundles of good x and y i.e.…
Q: The graph below shows the market for labor (coal miners). New coal-mining equipment is invente that…
A: Demand curve is downward sloping and it shows an inverse relationship between price and quantity.…
Q: Which is a better approach to management in a free market economy?
A: Supply and demand are the foundation of the free market, which has little to no governmental…
Q: Need help with question 7 and 8 please
A: The "Golden Rule" of government spending is a financial strategy expressing that an administration…
Q: . Question 11 options: ----------------Measures the value of production that occurs within a…
A: GDP or Gross Domestic Product is the sum total of the market value of final goods and services…
Q: market demand function of a commodity is represented by Qx = 20-2Px -0.5Py + 0.01M; where Qx is…
A: Cross price elasticity of demand tell the sensitivity as the percentage change in the quantity…
Q: Question 5 Consider a corn farmer with one acre of land. In addition to land, other factors include…
A: The Marginal product refers to the change in the total product when additional unit of variable…
Q: A) True or false: The marginal utility of good 1, that is, MU1, must be diminishing in x1. B) True…
A: 1) Solution: True Explanation: The marginal utilities of good 1 will be calculated as: MU1 = ΔU/…
Q: QUESTION 11 11. If both Demand and Supply decrease O a) Equilibrium price will decrease and quantity…
A: Demand refers to the quantity that a consumer wishes to buy at a given price in a given period of…
Q: 20. The compound interest on a certain sum of money for 2 years is Rs. 52 and the simple interest…
A:
Q: The value of what KFC produces in Japan is included in the U.S. ________ and in the Japanese…
A: GDP is the value of all final goods and services pr9duced within the domestic boundaries of a…
Q: Explain the effectiveness of the fiscal policy in economics.
A: The fiscal policy is the means by which the public power changes its spending and pay to influence…
Q: 15. Which one is a cost of inflation? A. Shoe-leather costs B. Menu costs C. Tax distortions D. All…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Company A successfully launches a hostile takeover of company B, in which company A purchases all…
A: Gross domestic product is the monetary value of every completed great and services made inside a…
Q: The government leaders of Nestua believe that corporations in Nestua are not paying their fair share…
A: Answer to the question is as follows:
Q: Monopoly and perfect competition are two market structures at the opposite end of the spectrum.…
A: A market structure with lots of customers and sellers is called perfect competition. The market…
Q: Does cross-price elasticity of demand between Commodity A and Commodity B have to be the same as…
A: The percentage change in the quantity demanded of one good as a result of the price change of an…
Q: Given the monthly payment as shown with interest as 1 % per month. Month 1 100 2 110…
A: From Payment for the months 2,3 it is clear that interest rate is 10% per month, not 1%(there might…
Q: Rob decided to drive to school rather than take the school bus. What was the opportunity cost of…
A: Opportunity Cost Opportunity costs are the profits that a person, investor, or company forgoes…
Q: Write a paper using the following headlines: Describe what panel data is and the reasons for using…
A:
Q: Refer to Table 6.3 below, use the expenditure approach to calculate gross domestic product from the…
A: The expenditure approach is a technique for computing a country's total national output (Gross…
Q: Suppose a monopolist M sells two products, X and Y. • Demand for X is qX = 1000 − pX − 1/2pY •…
A: Information given in question states:- Demand for X is qX = 1000 − pX − 1/2pY Demand for Y is qY =…
Q: The university states that emergency medical technicians ne be at all games to tend to medical…
A: Introduction: The elasticity of demand depends on the availability of substitutes. For instance, if…
Q: Do you agree that there is no difference between the nominal interest rate and the real interest…
A: Inflation and interest rates are fixed by the central bank of the country accordinf to the…
Q: What is Monopolistic Competition. What are the features of monopolistic competition?
A: Market refers to the mechanism in which buyers and sellers interact to reach an agreement on the…
Q: The Calculus of Equilibrium and Elasticities Suppose that the quantity supplied of TV stands is…
A: the elasticity of demand measures the quantitative relationship between the price and quantity…
Q: base year is 2020. GOOD QUANTITY (2020) PRICE (2020) QUANTITY (2021) PRICE (2021) RULER 1000 R3.00…
A: Nominal GDP refers to the value of goods taken at the current year's prices, which is achieved by…
Q: In Jonesville, the market price and equilibrium quantity demanded of ice cream drops every year in…
A: The law of demand states that price and demand have an inverse relationship. If the price falls…
Q: Which of the following is NOT included in 2004's GDP? Group of answer choices The profit earned…
A: When talking about the calculation of gross domestic product to determine the national income, it…
Q: One way to promote a new business is to sell a popular item at a massive discount. If Jared were to…
A: Maximum willingness to pay represents the maximum amount the consumer is ready to pay for a good. It…
Q: How is GDP affected by the nominal and effective interest rate
A: GDP refers to the total monetary value or market value of all the finished Products and services…
Q: If average total costs are minimized for a single, unique quantity of output, then industry. If…
A: Market structures comprise any of the several market features that govern how sellers interact to…
Q: A company is analyzing a make-versus-purchase situation for a component used in several products,…
A: In order to best option, we need to calculate the total cost of both options. The total cost will…
Q: "Because it is good for individual households to increase their saving in the short run, it is…
A: Here we are talking about the short run where the economic growth is demand driven. And the demand…
Q: 3. In order to restructure some of its debt, General Motors decided to pay off one of its short-term…
A: Question 3 The total cost of repaying the loan in one year is $82 million Rate of interest for this…
Q: A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for…
A: The term "revenue" refers to the total sum of money made through the sale of services and goods…
Q: Question Z Draw a production possibility frontier. The vertical axis shows the production of public…
A:
Q: You are a policy maker who is interested in increasing tax revenues in order to reduce the Federal…
A:
Q: Urgently i need help
A: We know that The globalization refers to the process of global integration, which includes the…
Q: In 2018, Janice Quinn sells a five-year-old car to Used Car, Inc. for $4,000. In the same year,…
A: GDP is the value of goods and services which are produced during an accounting year. The resale of…
Q: When the price of good Y increases from $2 to $3, the quantity demanded for good X decreases from 20…
A: "Cross-Price elasticity of demand between two commodities indicates how responsive is the demand for…
Q: George has been selling 7,000 T-shirts per month for $7.00. When he increased the price to $9.00, he…
A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…
Q: *"Roshan Farhan, who grew up in Guwahati, saw first-hand how little people in small towns thought of…
A: Human resources ( in short HR) is the division inside a business that is liable for everything…
Q: Briefly explain whether you agree with the following statement: "If consumer surplus LOADING... in…
A: The law of diminishing marginal utility is where the concept of consumer excess originates.…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Table 6 shows the choices that Marina makes on Good1 and Good 2 in July, August and September. Does Marina consider both goods to be normal goods or not? (Hints: When you try to sketch a diagram to illustrate the concept, you don't have to be very precise in calculations and you don't need to be overly accurate). P P, Income ($) July August September 60 20 40 1 80 40 20 2 120 10 2 2 140 Table 6 O a. Good I is inferior, Good 2 is normal good. O b. Undetermined. O c. Good I is normal, Good 2 is inferior good. O d. Good I is normal, Good 2 is also a normal good.53 In the basket of goods that is used to compute the consumer price index, the three largest categories of consumer spending are housing, transportation, and recreation. a. b. housing, transportation, and food & beverages. housing, food & beverages, and education & communication c. housing, medical care, and education & communication d.(Table: Martinez Family Household Income and Expenditures) Use Table: Martinez Family Household Income and Expenditures. For the Martinezes, falafel is a(n) good. Table: Martinez Family Household Income and Expenditures Quantity purchases per month Monthly income $2,000 $3,000 O positive O neutral normal O inferior Hamburgers 2 2 Books 4 6 Online movie rentals 6 6 Falafel 8 6
- Suppose that an economy consists of only two individuals. Jeremy has $1150 available to spend on goods. He decides to purchase $750 worth of produce from Michele in the current month. No other economic activity takes place during the current month. Using this information, answer the questions. For the current month, what is the economy's income? $ For the current month, what is the economy's expenditure? $ In an economy, how are income and expenditure related? O Income is less than expenditure. Income is greater than expenditure. They are unrelated. O They are equal.AMoving to the next question prevents changes to this answer. Question 3 of Question 3 1 points Save Answ The branch of economics that analyses the market behaviour of individual consumers and firms in an attemp to understand the decision-making process of firms and households. a)Gross Domestic Product O b)Micro Economics c)Macro Economics d)Logistics e)Gross National Product O0000Work out this questions An animal herder produces 300 litres of milk each year. He sells 160 litres to his neighbours and stocks 140 litres for his own consumption. Which figure should be included in household consumption: 160 litres or 300 litres?
- e the information in the table to answer the folowing qustiona. Al numbers are in bilions of 2012 dolars Govermment Purchases (G) $2.00 $2.500 $2.500 $2.500 $2.500 Pianned investment ( $1.000 Net Exports (NK) Real GOP (Y) Consumption (C) $12.000 $13.000 $14,000 $15.000 $10.000 $9.500 $10.250 $1.000 -$500 -$500 -5500 -$500 -$500 $1.000 $1,000 S11,750 $1.000 $12.500 $1.000 The equibrum level of GOP is S bilion The MPC is (snter your reaponse to two decimal places) Suppose that net exporta increase by $200 blion. Using the multiplier formua, determine the new level of GOP. AS200 bilon increase in net exports leads to a change in spending of S bilion, so the new level of GDP wi be billonPrepare a SWOT analysis using the details below. Maria is planning to open up a Cafeteria near her house. She closed her previousCafeteria few months ago because the rental keeps getting higher and the income is decliningbecause of the COVID19 pandemic. It came up to her the idea to open again since a lot ofpeople are asking for online delivery of their favorite snacks offered in her shop since most ofthe people would stay at home and would prefer food delivered in their doorsteps. Since sheowned a vacant lot near her house, and she thought that re-opening her shop in that locationwould be a great idea and she will not pay rentals anymore. And her Café Services will stillcontinue but with the added services like the Food Panda does.5. a) The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the "basket" of fruit with the quantities shown in column 2? Items Qty. 2001 2002 2003 2004 Amount Spent Price Price Amount Price Amoun Amount Price Spent t Spent Spent Apples Bananas $0.50 $0.20 $0.65 $2.00 10 $0.75 $0.25 $0.70 $0.85 $0.25 $0.90 2.05 $0.88 $0.29 $0.95 12 Grapes Raspberries 1 Total Price Index Inflation 2. 1.9 2.13 Rate b) Construct the price index for a "fruit basket" in each year using 2003 as the base year. c) Compute the inflation rate for fruit prices from 2001 to 2004. Who in an economy is the big winner from inflation and why?
- John is a School of Agriculture graduate and consumes 2 goods: Yoghurt and Bread. Akua also earns a typical student income from the parents, GHS 400 a month. She can either spend it all on Yoghurts and get 50, or she can spend it all on Bread and get 200 loaves. a. Given this information, construct the equation for John’s Budget Line. b. John gets a research grant and her income increases to GHS 800 per month. What is the new equation of her budget line? What if income stays constant at GHS 400 and the price of Yoghurts increase to GHS10? c. Assume that prices are the same as used in part a. If the marginal utility of a Yoghurt is 20, what is the marginal utility of Bread if she is maximizing her utility?The residents of Freedonia currently are consuming seven goods; yogurt, green tea, tofu, bean sprouts, cookie dough ice cream, Tito's Handmade Vodka and housing. The prices and quantities for these goods are given in the following table. Good Yogurt Green Tea Tofu Bean Sprouts Cookie Dough Quantity 3 7 18 Ice Cream Tito's Handmade I Vodka Housing 2018 2 Price 2.40 0.60 1.20 1.00 3.50 22.10 500.00 Quantity 4 9 20 4 7 I 2019 2 Price 2.86 0.72 4.80 1.20 4.00 21.35 505.00 Quantity 6 10 22 6 8 2 2020 2 a. Suppose that 2019 is the base year. Calculate the price index for 2018, 2019 and 2020. b. Determine the rate of inflation for 2019. Determine the rate of inflation for 2020. Price 3.01 0.80 5.10 1.25 4.60 25.50 512.0014) Calculate the real change in the income in $. A B C D 1 An iron mining company sells three grades of to its customers. 2 Per ton prices (S) of these grades and tons produced are shown below for 2016 and 2017. 3 2016 2017 5 6 7 Grade Notations 1. 8 9 Total IL IIL Price 5 B 10 Quantity go 3000 2000 2000 give min. 1 decimal and do not use sign, e.g.125.3 Price p1 8 10 12 E Quantity 4000 2000 3500 F