5. Find the equilibrium output for the following economy C = 120 + 0.5(Y – T); I = 250 – 10r; G = 50; T = 40; ()d = 1000 – 200r; M = 400; P = 2;
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- Thank you!Exercise 4. You are a manager at a certain factory that designs small gadgets. The factory has been quite successful in the past years. Your CEO is wondering whether or not it is a good idea to expand the factory this year. The cost to expand the factory is $1.5M. Doing nothing will result in expected $3M in revenue if the economy stays good and people continue to buy plenty of gadgets, but only $1M in revenue is expected if the economy is bad. On the other hand, expanding the factory carries an expected $6M in revenue if economy is good and $2M if the economy is bad. Assume there is a 40% chance of a good economy and a 60% chance of a bad economy. Also, assume the costs of operating the factory account to $.5M if the factory is expanded and $.3M if not. a. Illustrate a Decision Tree showing these choices. b. What should you do?28 24 point A point E point F 20 point B 16 12 • point C point D 8 4. 4 12 16 20 24 product X product Y
- I need help with this question pleaseAll raw materials are objects of work, but not all objects of work are raw materials. Select one: a)True b)FalseSuppose that United States produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week. Suppose that China produces 14329 barrels 14329 barrels of oil and 14329 bushels 14329 bushels of wheat each week. In autarky, what is the largest amount of wheat United States can consume every week? amount of wheat per week:___________ bushels What does the term autarky refer to? a. a major argument against globalization b. a situation where one country does not engage in trade with other c. countries d. the process of negotiating terms of trade between two countries e. government policies meant to reduce international trade
- 38(From last year’s final exam) Using an Edgeworth box, draw the following scenario. Amanda and Genevieve are in a 2-person closed economy where they only consume 2 goods: cheese and oranges. Amanda initially has 10 circles of cheese and 2 oranges and Genevieve initially has 12 oranges and 1 circle of cheese. Genevieve is tired of oranges and would like more cheese. Likewise, Amanda has eaten too much cheese in the past and would prefer more oranges. Assume that they engage in a series of trades and in the end settle on the following deal: Amanda gives Genevieve 4 circles of cheese in exchange for 6 oranges. Make sure to indicate on your graph: i. all of the axes, ii. indifference curves at the initial endowment (assume usual, well-behaved, convex indifference curves), iii. and indifference curves at the final bundle that emerged as an equilibrium through trade.In economics, the terms efficient, effective and productive are often known. Question: a. Explain the difference between each of these terms. Explain with examples b. How many types of efficiency are there? Explain the difference between each! c. If the results of the rice production model are as follows: Qp = 0.031 + 0.046 Land Area + 0.092 Seed + 0.198 TK + 0.728 Fertilizer + 0.222 Perticide. Explain the results of the analysis related to the concept of efficiency for each variable and return of scale
- (a) Suppose that the 149 million square kilometers of land on the surface of the population of 7 billion people in late 2011 or early 2012. population of 7 billion people in late 2011 or early 2012. 4. According to the United Nations Population Fund (UNFPA), the world reached a (a) Suppose that the 149 million square kilometers of land on the surface of the earth was divided equally among this population, so that each person was allotted a square parcel of land How long would the sides of each square parcel be? (b) According to the United Nations Food and Agriculture Organization (FAO), only about 32% of the surface of the earth is considered arable and suitable for farming. If only the arable land was divided into equal square parcels among the population, how long would the sides of each square parcel be? (c) Express your answers to parts (a) and (b) in terms of some concrete unit of length. For instance, you might compare them to the height of the Empire State Building, the span of…Refer to the exhibit ...what does a movement from point G to F means?1. An economy has the following variables: Goods Market: Y=500 C=25 + 2/3 (Y-T)-100r I=120-300r G=75 T=50 a) Graphically draw (a rough sketch is fine) of the goods market. Assuming you start at the closed economy equilibrium what is the initial r, S, I? b) Suppose that there is a reduction of G by 25, What is the new r, S, I? Show this graphically. c) Starting with the initial information suppose instead that there is a reduction of I by 25, What is the new r, S, I? Show this graphically.