Which of the following would hold true if a country’s export demand is elastic and price of commodity rises? Select one: Decreased demand Increased demand Results in a great export value A and C both B and C both
Q: Suppose that the reserve requirement for checking deposits is 16 percent and that banks do not hold…
A: Introduction The Federal Reserve promotes the safety and soundness of individual financial…
Q: q2a- Which case is NOT suitable for restricted least squares estimation imposing a restriction to…
A: RLS (Restricted least square) involves restricting the models such that the required estimates can…
Q: Demonstrate competence in words the theory & evolution of international trade with emphasis on…
A: Answer to the question is as follows:
Q: SAMSUNG’S NEWEST AD ON TWITTER FOR THE NEW GALAXY NOTE9 HAS RECEIVED OVER 5 MILLION LIKES AND 2…
A: Demand curve is the graphical representation of demand schedule. Increase in demand means the…
Q: In 3-5 sentences, evaluate if the United States has been a leader in the global economy in recent…
A: United States is a highly developed market economy which has the largest level of nominal GDP in the…
Q: When the supply of money increases, what happens to the interest rate? A. the interest rate…
A: The total amount of money that is in circulation in the economy at any particular time is referred…
Q: 1. The Lotsa Pasta Company sells pasta in a perfectly competitive market at a price of $2 per pound.…
A: Equilibrium is where P = MC P is the price MC is the marginal cost.
Q: Why does the Fed act as a lender of last resort? What is the usual mechanism by which the Fed acts…
A: The primary function of a Fed or central bank is to act as a lender of last resort: this means that…
Q: Explain and elaborate on how you arrived at the score. Assess yourself in terms of job knowledge,…
A: Human beings are endowed with different intrinsic traits which vary across individual. No two…
Q: In Promaine Flats, Nevada there were two restaurants: Sal Monella and Road Kill Café. Current profit…
A:
Q: 1. Other other than high minimum prices and taxation, what could be used to tackle binge drinking?…
A: Price controls are the minimum or maximum prices that are set by government for particular goods. In…
Q: Assume the following: Price that buyers pay = $22 Price that sellers receive = $25 What must be the…
A: Tax can be found by the difference between the price paid and received by the buyer and seller…
Q: 4-(Extra Credit) Assume you must choose between the two alternatives below and that a MARR of 12% is…
A: Internal rate of return is the rate at which the discounted cash flow's present value becomes zero .…
Q: How to set the Pigouvian Taxes to correct the problem with negative externalities? Eliminate the…
A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…
Q: Hat is the NPV of this investment ?
A: Particular Amount Vehicle acquisition cost 48000 Economic life 1 Tax rate 25% ROE 11% ROD…
Q: A firm in a perfectly competitive market has a fixed cost of $5 and a MC function of 9X, where X is…
A: In a competitive market , The optimal production level is where P = MC Where , P is the price MC…
Q: Ten years ago, Johnson Recovery purchased a wrecker for $330, 000 to move disabled 18-wheelers. He…
A: Cost of wrecker 10 years before = 330000 Salvage Value = 25000 Annual revenue = 60000 Interest rate…
Q: Consider a simple Keynesian model. Which of the following will decrease planned aggregate…
A: Aggregate expenditure is the sum of Consumption, Investment and government spending. AE = C + I + G…
Q: . Consider the following "location game." There are two ice cream sellers (Seller 1 and Seller 2) in…
A: a. This game has discrete strategies because the payoff is defined by the proportion of residents…
Q: Joan has the following utility function: u(x, y) = 5x + 3y. Consider that income is I = $8, and…
A: Given Utility function: ux,y=5x+3y ...(1) The price of good x is $4 and the price of good y…
Q: Which of the following is true about the Phillips curve? The empirical relationship between…
A: The Phillips curve explains an inverse trade-off or relation between the inflation and unemployment.…
Q: What is the name of the U.S. central bank and how can it increase the monetary base? A. the Fed; by…
A: When talking about monetary base of an economy, it can be seen that monetary base can be changed and…
Q: The classical dichotomy is the separation of real and nominal variables. The following questions…
A: The classical dichotomy in macroeconomics refers to the assumption, attributed to classical and…
Q: Currently what is used as the "base year" in the NIPA accounting system. A) 2010 B) 2012 C) 2008…
A: NIPA stands for National income and Product accounts. It measures the output and income in the…
Q: 3. Instead of assuming a linear demand curve, suppose we assume that demand is char- acterized by…
A: A linear demand curve is the graphical representation of the connection between the price of a good…
Q: Your current prices are $311 in the Southwestern region; $278 in the western-region and $240 in the…
A: Introduction Quantity demanded is the total amount of goods and services that consumers need or…
Q: But which event will increase the quantity of deposits the banking system can create? A. An…
A: A bank keeps a certain percentage of deposits as reserves and rest it loans out.
Q: Find the depreciation for the sixth year using MACRS cost-recovery rates for the property placed in…
A: Economic depreciation is defined as an asset's wear and tear that exceeds its projected capacity or…
Q: A firm uses two inputs, capital (K) & labour (L). Given the production function: Q(K.L) = (KLO) a)…
A: In the study of economics, production functions represents the relationship between the quantity of…
Q: Alicia has flipped a coin, and it has landed heads up 10 times in a row. She therefore thinks the…
A: The utility is maximized where the Marginal utility per dollar is same across the goods. If the…
Q: Suppose that firm Alphabet is the only company that sells all-inclusive vacation packages in the UK.…
A: Price discrimination refers to the selling strategy which can charge different prices from different…
Q: The table below shows revenue data for different firms producing cleaning products. Use the given…
A: The table below shows revenue data for different firm's producing cleaning products.
Q: 3) C = 40Q +200 mc; = ५० mc, = mc₂=40 P₁ = 200 - Q. TR₁ = P₁Q₁ = 200 Q₁-Q₁² MR, = 200 - 29, MR. =…
A: 3). C = 40Q + 200 MCi = 40 MC1 = MC2 = 40 P1 = 200 - Q1 => TR1 = 200Q1 - (Q1)^2 MR1 = 200 -…
Q: In the following scenario, identify the correct sequence of events. If there is a $1 decrease in…
A: Aggregate expenditure / Aggregate demand is a sum of consumption demand, investment demand,…
Q: Suppose that production function is Y = K¹/³ (AN) 2/3 and competitive firms hire capital and labor…
A: Given, Y=K1/3(AN)2/3 Competitive firms hire capital ad labor to produce outr is the return paid to…
Q: What problem with an OLS regression is instrumental variables intended to address?…
A: A common method for analyszng the coefficients of direct regression conditions that show the…
Q: open market operations. The central bank should reduce the price of bonds for a contractionary…
A: When a central bank uses its tools to stimulate the economy with increasing money supply, the policy…
Q: The following graph shows the labor market for research assistants in the fictional country of…
A: Tax A tax is an expense levied by the government on taxpayers. Taxation generates the government's…
Q: Increase in demand for domestic goods is due to Select one: a) Floating Exchange rate b)Direct…
A: Floating exchange rate: floating exchange rate is just a system of exchange rate followed by the…
Q: Jack just discovered that he holds the winning ticket for the $87 million megalottery in Missouri.…
A: The present value of an annuity will be sum of the present value (i.e. at time t = 0) of all the…
Q: Suppose Friedman Inc., a monopolistic competitor, sells sofas. They are able to sell 570 sofas at a…
A: Total revenue is the product of Quantity and price. Total cost is the product of average cost and…
Q: An alternative measure of a nation's well-being using GDP as a starting point A. Real GDP B. GPI C.…
A: GDP or Gross Domestic Product is the sum total of the market value of the final goods and services…
Q: When the prices of goods x and y were €2 per unit of either good, a consumer spent all his monetary…
A: In economics and particularly in consumer choice theory, the substitution effect is one component of…
Q: If the tax is imposed on the sellers, shouldn't the 'T' be used alongside the supply 'q' not the…
A: First we need to understand that the supply curve shows the minimum price at which the seller is…
Q: Consider an open-economy IS-LM model. The domestic economy is small relative to the world economy.…
A: IS -LM model is used to explain short run changes in economy where IS relation depicts the locus of…
Q: y = B₁ + B₂x2 + 81D1 + √2D2 + √3D3 + e The above model is fitted to model wage (y) against the years…
A: The reference group of a regression model is the group with all dummy variables equal to zero. Dummy…
Q: What is Globalisation? What created Globalisation?
A: International trade is the movement of commodities and services among various nations throughout the…
Q: Price and costs (pounds per unit) A Oooo F C+D. D E GH 1 A+B Which area(s) in the above figure shows…
A: For a monopoly, Profit is maximum where MR = MC Consumer surplus is the area below demand curve…
Q: For each of the prices listed in the following table, determine the quantity of oranges demanded,…
A: The price ceiling is an upper limit on the price. It is a type of price control.
Which of the following would hold true if a country’s export demand is elastic and price of commodity rises?
Select one:
- Decreased demand
- Increased demand
- Results in a great export value
- A and C both
- B and C both
Step by step
Solved in 2 steps
- BTU, draw a diagram to illustrate how the develop- c. As a percent of total exports, rank the states in orda b. Calculate the growth in exports from 2002 to 2012 156 I PART 2 SUPPLY AND DEMAND C. Assuming natural gas prices in Europe are $6.00 per BTU, draw a diagram to illustrate how the develop- ment of a natural gas terminal in the United States will affect supply and demand in the natural gas market for Europe. Explain your findings. d. How will the exporting of natural gas from the United States to Europe affect consumers and pro0- ducers in both places? Note that most of the natural gas in Europe originates from Russia's state-owned natural gas company, Gazprom. Access the Discovering Data exercise for Chapter 5 online to answer the following 3. questions. a. Rank the states in order of exports to China. Rank in order of most to fewest exports. for each state. of most to least exports to ChinoThe tsunamis that hit Japan in 2011 and India and Sri Lanka in 2004 were devastating, and their effects were felt for many years afterward. Natural disasters of this type as well as international events often result in severe disruptions to the supply ofallegations that meat inspectors and politicians had received bribes to overlook improper meat packing practices and allow sales of tainted food. How would the closing of export markets for a country’s beef products together with a fall in domestic sales of beef products and an increase in the domestic equilibrium quantity be reflected in supply-anddemand diagrams of that country’s foreign and domestic markets for beef in the short run?5. A graphical comparison of tariffs and quotas Alagir and Ertil are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of rugs to 20 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $2,000. In Alagir, the government decides to impose a tariff of $3,000 per rug; in Ertil, the government implements a quota of 20 million rugs. Assume that Alagir and Ertil have identical domestic demand (Do) and supply (S) curves for rugs as shown on the following graph. Under these conditions, the price of rugs is $5,000 per rug in each country. 10000 ( ) 8000 8000 7000 8000 5000 4000 3000 2000 1000 0 0 Pu 10 Do 20 D₁ XX ✩ XX 30 40 50 60 70 QUANTITY (Millions of rugs) 80 S 90 100 (?)
- Analyze the import on the market demand for cosmetics under the following situations: (a) A change in the sex ratio of the population increasing the females against males in number. (b) A general price rise in consumer product by 10 per cent. (c) An increase in excise duties on cosmetics.E1 What is the elasticity of residual supply faced by a country if the market supply elasticity is 3, the elasticity of demand of the other countries is -2, and that country buys 2% of the world's output?Elasticity =Kawmin is a small country that produces and consumesjelly beans. The world price of jelly beans is$1 per bag, and Kawmin’s domestic demand andsupply for jelly beans are governed by the followingequations:Demand: QD = 8 − PSupply: QS = P,where P is in dollars per bag and Q is in bags of jellybeans.a. Draw a well-labeled graph of the situation inKawminif the nation does not allow trade.Calculatethe following (recalling that the area ofa triangle is ½ × base × height): the equilibriumprice and quantity, consumer surplus, producersurplus, and total surplus.b. Kawmin then opens the market to trade. Drawanother graph to describe the new situation inthe jelly bean market. Calculate the equilibriumprice, quantities of consumption and production,imports, consumer surplus, producer surplus, andtotal surplus.c. After a while, the Czar of Kawmin respondsto the pleas of jelly bean producers by placinga $1 per bag tariff on jelly bean imports. On a graph, show the effects of…
- An import quota the domestic price of the imported good. O mimics O always decreases O always increases O does not affectExporting countries Which of the following will be true, everything else remaining constant, for a country that exports some good? a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports. b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade. b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade. c) Some domestic suppliers will lose surplus while others will gain surplus. Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.Quotas may affect the terms of trade of the country imposing them. The effect of quotas on the terms of tradedepends upon the elasticity of the foreign offer curves. True False
- What does the term "import demand" describe? O A. Relative demand for the importing country. B. The excess of domestic demand over domestic supply. OC. The excess of foreign supply over foreign demand. O D. Demand for a good the country would like to import because it does not produce this good domestically.Assume that you have been hired by an International Organization to be consulted on variousissues that the country Motherland faces. For this exercise, assume that Motherland is a smallagricultural economy. (a) Motherland imports electronics from the United States. The government of Motherland is considering to impose quotas on these electronics imports coming from the United States. Would you recommend it? Explain your answer. In your explanation, distinguish the effect on the consumers of electronics, the domestic producers of electronics and the government. (b)The government of Motherland wants to jump start industrial production. Over time the main objective is to convert this agricultural economy into an industrial nation. On the basis of the experiences of Argentina and Singapore, what policies would you suggest?Assume that there's an increse in US consumers' preference for Japanese automobile. Which of the following chanfes will most likedly take place in the market for dollars a) It will take more yen to purchase the same amount of dollars b) the demand for dollars will increase c) the supply for dollars will increase d) the supply and demand of dollars will decrease e) there will be no change in the foreign exchange market