Assess the validity of the following statement: In the Mundell-Fleming model, the domestic goods-market equilibrium curve is negatively sloped.
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Assess the validity of the following statement: In the Mundell-Fleming model, the domestic goods-
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- There are four key relationships upon which the Standard Model is based. Please list each of the four relationships and give one example for eachSuppose that a simple economy consists of three sectors: Sector X, Y and Z. Given the input-output table below for the 3 sectors. Sector X Sector Y Sector Z External Demand Sector X 0.4 0.6 72 Sector Y 0.4 0.3 0.2 150 Sector Z 0.1 0.4 581) Kenya's minimum wage is Kshs 850 per hour. Imagine you are a policymaker and you must vote whether it be raised, lowered, or abolished. What will you decide? Why? Show how your decision will look when graphed. 2) Two commodity market model is defined by the following. Qd, = 24 - P, + 0.5P;; Qd, = 10 P, - P2; Qs, = -7.5 + 4P,; Qs, = - 18 + 4P, Determine the equilibrium prices and quantities for the two commodities and the price elasticity of demand and cross elasticity for both markets and interpret your coefficients. b. Kenya's minimum wage is Kshs 850 per hour. Imagine you are a policymaker and you must vote whether it be raised, lowered, or abolished. What will you decide? Why? Show how your decision will look when graphed.
- Takaful and Karama is a social program that has been launched by the Egyptian government in 2015 to support the disadvantaged and most vulnerable families and elderly citizens. The part of the program that is directed to support families represents a conditional cash transfer that requires families to keep their children in school until they are 18 years old and follow up visits to local health care units to be eligible for receiving the cash transfer. Amira is an Egyptian ten years old child from a poor family who has previously dropped out of school. To be eligible for the fund, her mother enrolled her in school again. Amira is expected to remain in school until she is 18 years old. a) Explain, with the support of illustrative charts, the impact of Amira's returning to school until she is 18 on her potential life earning stream. b) How will that social program impact the national human capital of Egypt in the future, and specifically the characteristics of the Egyptian national…Solve for first order conditions of the representative agent. Write down the market clearing condition (resource constraint) for the aggregate economy.Following the broad overview of potential costs and benefits of the policy, we will now analyse the main objective of the policy using an economic model. Consider two groups of citizens, each group can either choose to drive x = d or to take public transport x = p. The first group, group 1, enjoys driving and has the following 4 benefit from using their car within the ULEZ area: B₁(x₁ = d) = 18. The second group, group 2, does not enjoy driving and has a benefit of B₂(x₂ = d) = 0 from driving their car. If they don't drive, citizens can use public transport to get around. The benefit of doing so is the same for both groups: B₁(x₁ = p) = B₂(x₂ = p) = 10. Both groups drive cars that do not meet the ULEZ requirements and therefore create excessive pollution. For simplicity, we consider that pollution, and the health problems it induces, are the main cost of driving. This cost is imposed on both groups and is equal to C/(x₁ d, x₂= d) = 10 if both groups drive, C₁(x₁=p, x₂ = d) = C₁(x₁ =d,…
- Consider a one period model in which a representative agent maximises the utility function: u(c,l) = lnc + 5lnl subject to the budget constraints: c = (1-t)w(1-l) + v where c is consumption and l is the amount of leisure, they enjoy out of a total of one unit of time available, t is the tax on wage earnings which pays for v in government transfer payments. A. Solve for first order conditions of the representative agent. B. Write down the market clearing condition (resource constraint) for the aggregate economy. C. Solve for equilibrium consumption and labour choices.State and define the main assumptions of the Heckscher-Ohlin theory.What does it mean for a policy outcome to be a Pareto Improvement? What about a Potential Pareto Improvement? Is this a reasonable expectation for policy in most settings? Give an example where a Pareto Improvement (following redistribution) a.) might be achievable b.) seems incredibly unlikely
- Consider the free market model involving the quantities of a product bought and sold, Q, at price P, as follows: Q = a1 + a2P, where a1 < 0, a2 > 0, and Q = b1 + b2P, where b1 > 0, b2 < 0. (i) Identify which of the above equations is the market demand, and which is the market supply, Curves, and explain the reasons for your choices. (ii) For the specific model: Q = -15P+2200 and Q = -800+10P, solve for the market equilibrium price (P*), and quantities (Q*) outcomes. (iii) Sketch a graphical representation of this market model. (Must label ALL intercepts and slopes clearly on your graphs).If you were hired by President Rodrigo Roa Duterte to be his Economics Adviser, what is your sound recommendation to prevent online sexual exploitation.Please see attached: Answer does not require any explanation. Feel free to just state answer.
