2. Assume that you want to decide whether Country A or Country B to live. You have only14x² +15information about cumulative percentage of income distribution functions of1111x for country A and x2 +x for country B. A) Which country do you prefer and151212? B) Prove your decision numerically, graphically, and with respect towhyrelevant economics theory

We are going to analyse lorenz curve and gini coefficient to answer this question.

2. Assume that you want to decide whether Country A or Country B to live. You have only 14 .2 information about cumulative percentage of income distribution functions of x² + 15 1 x for country A and x +x for country B. A) Which country do you prefer and 15 11, 12 12 why relevant economics theory ? B) Prove your decision numerically, graphically, and with respect to

2. Assume that you want to decide whether Country A or Country B to live. You have only 14 .2 information about cumulative percentage of income distribution functions of x² + 15 1 x for country A and x +x for country B. A) Which country do you prefer and 15 11, 12 12 why relevant economics theory ? B) Prove your decision numerically, graphically, and with respect to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider Tralfamadore, a hypothetical country that produces only cakes. In 2017, a cake is priced at $4.00. Complete the first row of the table with the quantity of cakes that can be bought with $900. Hint: In this problem, assume it is not possible to buy a fraction of a cake, and always round down to the nearest whole cake. For example, if your calculations result in 1.5 cakes, the answer should be 1 cake. Year Price of a Cake Cakes Bought with $900 (Dollars) (Quantity) 2017 4.00 2018 Suppose the government of Tralfamadore cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 20% by 2018. Assuming monetary neutrality holds, complete the second row of the table with the new price of a cake and the new quantity of cakes that can be bought with $900 in 2018. The impact of the government's decision to raise revenue by printing…
Country X is faced with the following output combinations for capital goods and consumer goods. Option A B CDE Consumer goods (in 10000) == E Complete parts a, b, c, and d. a. Graph the production possibilities curve for Country X with capital goods on the x-axis and consumer goods on the y-axis. ܡܐܐ J 2 o O Capital Goods 0 8000 16000 24000 32000 (0,22) (8,20) JA 4 B с Consumer Goods 220000 200000 160000 100000 0 (16,16) 16 P.O. Box 56480 Portland, OR 97238 (24, 10) D E (32,0) + 20 24 28 32 8 12 Capital goods (in 1000) b. Does the Law of Increasing Opportunity Costs hold for this example? Explain why or why not. c. As you move from point B to point C, what is the cost of one more consumer good?
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Question 12 Questions 10-15: The figure below shows the production possibility curve (PPC) of Canada. The line TTo shows the trade line with the price ratio of 1 book/candle. I1 and 12 are two of the community indifference curves of Canada. books 80 60 50 a. 60 candles. b. 20 books. C. 20 books. d. 80 books. books 80 80 60 50 60 50 12. Which of the following can be inferred from this figure? a. Canada has a comparative advantage in the production of books. Ob. Canada has a comparative advantage in the production of candles. C. Canada has an absolute disadvantage in the production of both the goods. d. Canada has absolute advantage in the production of both the goods. 13. After Canada engages in free trade, it will export: a. 80 books. b. 20 candles. C. 40 candles. d. 60 candles. books S₁ 80 question 13 Questions 10-15: The figure below shows the production possibility curve (PPC) of Canada. The line TTo shows the trade line with the price ratio of 1 book/candle. I1 and 12 are two of…
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You are an elementary-school principal and have a budget of $1m per annum. You can spend this on teachers, each with a total salary and benefit cost of $50,000 per year. Or you can spend it on Free School Meals for students at a cost of $500 per student per year. To help make your budgetary choices you draw out the budget constraint. What is the opportunity cost in terms of students receiving free school lunches for a year for one more teacher?
1. According to part A of Table 5-1, what education level loses most (i.e., has the greatest decrease in wage) from immigration to the United States? Does this result depend on keeping the rental on capital constant? Explain why or why not. 2. Suppose that computers use 2 units of capital for each worker, so that KC = 2 • LC, whereas shoes use 0.5 unit of capital for each worker, so that KS = 0.5 • LS. There are 100 workers and 100 units of capital in the economy. a. Solve for the amount of labor and capital used in each industry. Hint: The box diagram shown in Figure 5-7 means that the amount of labor and capital used in each industry must add up to the total for the economy, so that Use these two equations to solve for LC and LS, and then calculate the amount of capital used in each industry using KC = 2 • LC and KS = 0.5 • LS. b. Suppose that the number of workers increases to 125 due to immigration, keeping total capital fixed at 100. Again, solve…
Please answer each question with sufficient detail. Relevant detailed responses are highly rewarded. If you consult any sources, then you should provide both in-text citations and references at the end of each response. You need to make sure at least consult your textbook for your responses. 1. Explain how the international movement of products and of factor inputs promotes an equalization of the factor prices among nations.
2. Consider the ranking criterion used at the Olympic Games, but only consider Gold and Silver medals: country A comes before country B if either A has more gold medals than B or A and B have the same number of gold medals, but A has more Silver medals. Putting Gold medals on the x-axis and Silver medals on the y-axis, draw an indifference curve for this preference relation.
Why do some immigrants leave the destination country and go to a third country instead of returning to their origin country? (Use the utility- or income-maximization model and the gravity model to explain repeat migration.)
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