When making choices between spending or saving, how might these decisions impact the aggregate (national) economy?

Q: Which of the following is a preferential agreement?

A: Preferential trade agreements: (FTAs) eliminate boundaries to exchange among individuals and…

Q: Sheridan Company reported total manufacturing costs of $350,000, manufacturing overhead totaling…

A: Direct labor cost is a part of wage-bill or payroll that can be specifically and consistently…

Q: If bank reserves are 200, the public holds 400 in currency, and the desired reserve-deposit ratio is…

A: Given information: Bank reserves are 200 Pubic holds 400 in currency The desired reserve-deposit…

Q: Determine the value of the given gradient factor. (P/G, 14.5%, 17)

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Suppose GDP is £32 trillion, consumption is £25 trillion, taxation is £4.3 trillion and private…

A: Gross domestic product is the measure of the market value of all the final goods and services…

Q: This question is based on the following diagram. Assume that the dashed lines are parallel and that…

A: Provided information: A total product curve for its input and output is provided in the question…

Q: To create inflation, aggregate demand must increase True O False

A: Since you have asked multiple questions we are answering the first question for you. If you want…

Q: Use the following to answer the next question. Price 100 90 80 70 60 50 40 30 20 10 0- MCL MR₁ L…

A: In price leader ship model , there exist a follower and a leader .The leader decides the price at…

Q: This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke. Buyer…

A: Consumer surplus is the area below demand curve and above price.  Consumer surplus is given by the…

Q: The marginal revenue (MR) curve facing a single-price monopolist: lies below its average revenue…

A: In case of Monopoly there is a single firm who controls the entire market. The firm is a Price…

Q: Which of the ff. statements is correct? A. Indifference curves which look like letter L show that…

A: An indifference curve basically depicts a combination of two goods in various proportions that…

Q: At a level of real disposable income of $10,000, suppose consumption is $11,000. Given this…

A: Given information: Disposable income = $10,000 Consumption = $11,0000…

Q: About how fast did a country's population grow per year if it had 100 million people in 1950 and 200…

A: Growth Rate represents the change in variable like income, population, sales etc over a particular…

Q: Profit is maximized when the marginal revenue is equal to the marginal cost provided the total cost…

A: Marginal cost can be computed by deducting the total cost resulting from the addition of one more…

Q: 1. Complete the table on the right by computing for the values of average product and marginal…

A:

Q: Natural resource policies and management practices often focus on addressing “spillover” effects of…

A: Spillover effect implied the impact that seemingly unrelated events in one nation can have on the…

Q: A firm is more likely to increase its total revenue by decreasing the price of its product if: the…

A: Total revenue is the product of price and quantity.  With the increase in price or quantity, the…

Q: financial globalisation.

A: The term financial globalization related to inflow and outflow of the capital in between the…

Q: Why does J.K. Galbraith believe that there will be an “inherent tendency” for public services to lag…

A: John Kenneth Galbraith develops the concept of the dependence effect, the idea that advertising not…

Q: There is economies of scale if the average cost of production is lower for bigger scale of…

A: At the marketplace, firms produces output at different scale based on their market share, ability…

Q: Which of these is a negative production externality? An airline manufacturer must hold up production…

A: Negative production externalities: When the production of goods and services cause harmful effect on…

Q: Discuss why poor economies has failed to gain from financial globalisation.

A: The term "financial globalization" refers to a broad notion that describes growing cross-border…

Q: The government is concerned about the dead weight loss that its taxation is creating. Which of the…

A: Deadweight loss is the loss of anything beneficial to the economy as a result of the tax. The…

Q: ii) Calculate the tax revenue the government can collect from the sale of soft drinks. Show your…

A: The sales tax is collected at the point of sale (POS) from where the consumer buys the product…

Q: The demand and cost equations for the production of a certain ancillary component of HDTVs are given…

A: Given information: p(x) = 300 - (1/30)x ------------> demand equation C(x) = 15000 + 30x…

Q: The following question relates only to the equilibrium in the goods market IN A CLOSED ECONOMY and…

A: Keynesian Cross and IS-MP framework: Both Keynesian cross and IS-MP are models to explain short-run…

Q: Which of the following correctly describes an external benefit resulting from an individual's…

A: Externality is the benefit or cost that will be born by third party.  There is positive externality…

Q: A newly proposed project has a first cost of $ 230815 and estimated annual income of $49110 per year…

A: Present value is the value is the value of investment in today's dollar.  Future value is value of…

Q: Which characteristic of the indifference curve explains that the ranking of the bundles of goods by…

A: In essence, an indifference curve shows a combination of two items in different ratios that gives a…

Q: Import substitution industrialization (ISI) in Latin America

A: The imports were taxed more than the exports so that the imports fall and dependence on foreign…

Q: monopoly sells at a price equal to marginal revenue (P=IM) a. true b. false

A: Monopoly means single seller. Monopoly means single and poly means to sell. So Monopoly is tge sole…

Q: 2. Derive the monopoly equilibrium, i.e., the profit maximizing price and quantity, as well as the…

A: C = 4q MC = 4

Q: The firm maximizes his profit when MR = MC. Under the oligopolistic market, the profit maximization…

A: In a market, a profit-maximizing firm will produce an output at a point where its marginal cost…

Q: Suppose a consumer is indifferent between the bundles (x1, x2) = (20, 10) and (15, 16), and suppose…

A: Indifference curve shows the combination of those goods which offers the consumer same level of…

Q: Suppose a monopolist has the following cost function C(Q) = 40Q (with marginal cost MC = 40).…

A: Under the monopoly market, the firm maximises its profit when the marginal revenue is equal to the…

Q: If a firm uses n inputs (n > 2), what inequality does the theory of revealed cost mini- mization…

A: Cost minimization is the process of cutting costs associated with pointless or ineffective…

Q: Determine the ESL, at i = 15% per year for equipment that has a first cost of $8,000 and the…

A: The economic life is 2 years because the EUAC is minimum at 3688.37

Q: Suppose we have the following production function: Q = K + 10L. Confirm the technology is constant…

A: Given production function: Q=K+10L  A production function is said to be a constant return to scale…

Q: (d)_(Cournot Competition) Now suppose we added a second firm that has identical costs to the…

A: Dead weigh loss: It is defined as the loss of total welfare (or the total surplus = consumer surplus…

Q: 3. Refer to the data on the right. A. Solve for variable cost (VC). B. Assume the selling price is…

A: Total Variable costs are the cost which is being incurred by the producer which depends on the…

Q: Demand: P-10-Q Marginal Revenue: MR = 10-20 Total Cost: TC = 3+Q+0.5Q² Marginal Cost: MC = 1 + Q The…

A: In monopoly ,  Monopolist will produce where MR = MC  MR is the marginal revenue MC is the marginal…

Q: How long (in years) will it take to quadruple a money if it earns %4.7 compounded semiannually?

A: Compounding interest refers to the interest that accumulate on both the principal and interest rate.…

Q: 10. Which of the following statements is true? a Cost-push inflation occurs as prices rise because…

A: Cost push inflation is a type of inflation occurs due to increases in the cost of wages and raw…

Q: 3. Individual Problems 21-3 Which of the following is a characteristic of principal-agent conflicts…

A: When talking about principal-agent conflict, it can be said that this situation arises when there is…

Q: Barton and Stadler are neighbors in an apartment complex in downtown Manhattan. Barton is a concert…

A: Coase Theorem states that under absence of external cost the involved parties can negotiate the…

Q: Which of the following correctly describes an external benefit resulting from an individual's…

A: The external benefit is defined as a benefit enjoyed by the person as a result of economic activity…

Q: What can be concluded from Milton Friedman and Edmund Phelps' expectations-augmented Phillips curve?…

A: The original Phillips curve argued that there exist an inverse relation between the unemployment and…

Q: If money is a neutral medium of exchange, as Adam Smith defined it, why does money today divide…

A: The neutrality of money: According to the 18th-century classical economist, Smith, an economy's…

Q: hat are some of the advantages of using a development metric?  it allows for comparison across…

A: Metrics are quantitative evaluation metrics often used for evaluating, contrasting, and monitoring…

Q: O Macmillan Learning Use the graph to answer the question. If the economy is INITIALLY at E₂ in the…

A: Aggregate demand is the sum of consumption, investment, government spending and net export.…

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.