Q: 3. Your income in Year 1 is R50 000, in Year 2 it is R100 000, in Year 3 it is R120 000, in Year 4 i...
A: The economist Milton Friedman is credited with the permanent income hypothesis, which is used to exp...
Q: Explain how consumer expectation is a determinant of demand.
A: Demand simply refers to a customer's desire to purchase goods and services without hesitation and pa...
Q: How do you calculate private closed economy GDP?
A: A closed economy represents a market system where no trade with other countries take place.
Q: Suppose real GDP is $3,500, what of these is occuring?
A: Given, AEplanned is demand. Now, When supply is more than demand, there would be excess supply. When...
Q: Good X If BC2 is the relevant budget constraint, then which of the following bundle(s) is(are) affor...
A: A budget constraint shows the amount of goods that consumer can purchase with given set of income
Q: 10.5 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Proje...
A: [a]Benefit/ cost ratio:-Benefit = Project A = 17,000,000 Project B = 17,000,000Cost = Project A = 5...
Q: Fill in the column for marginal cost in the previous table. (Hint: MC = ) Fill in the column for ave...
A: In economics, the marginal cost of production is the change in total production cost that comes from...
Q: 1. Explain the three canons of a good tax system. 2. List and explain the four stages of the budgeta...
A: The answer is as follows:-
Q: What is the current value of a security that pays $500 per year for 7 years if similar investments n...
A: Investment refers to the investment that invests in the asset for growth in the long run. It means a...
Q: Suppose the competitive tablet market is in long-run equilibrium. If at this equilibrium, the typica...
A: "In a competitive market a firm attains a long-run equilibrium at a point where price equates the mi...
Q: If the owner of the drugstore hired a manager for $10 an hour to take his place, how much of a chang...
A: Answer -
Q: (12) Suppose all firms in a monopolistically competitive industry were merged into one large firm. W...
A: Monopolistically competitive industry is an industry where there are many buyers and sellers in the ...
Q: 4. Nimbus, Inc., makes brooms and then sells them door- to-door. Here is the relationship between th...
A: Given, A Worker cost (Variable cost) = $100 Firm's fixed cost = $200 Therefore, Total Cost (TC) = Fi...
Q: Suppose a company is offering insurance where your premium is $500 and your payout is $2000. What i...
A: We are going to get the payout with probability 0.2 but we have to pay premium in both the states.
Q: Consider a utility function of two goods x and y: U (x,y) = A (ax +by') where A >0, a>0, b>0, r € (-...
A: b) Slope of indifference curve= (-) MUx/MUy MUx= Ar(axr+byr)1r-1(arxr-1) MUy= dU/dY= Ar(axr+byr)1r-1...
Q: How are Milton Friedman’s theories applied?
A: Economics is the study of scarce resources. It means the resources are limited and our wants are unl...
Q: How much would be in your account in 10 years after depositing $2000 now? The annual interest rate i...
A: Answer -1 According to the question, we need to calculate future value. Present value (PV) = $2000...
Q: 5. Jane’s Juice Bar has the following cost schedules: Quantity 0 vats of juice 1 2 3 4 5 6 Variable ...
A: In economics, average variable cost is a firm's variable costs divided by the quantity of output pro...
Q: easha Pratt will graduate from high school next month and cannot decide what she wants to do. She ha...
A: Economic decisions are those decisions in which people will choose what to do with limited resources...
Q: Governments that embezzle tax money from its constituience is an example of what? Redistributive Ins...
A: Governments that take money from the taxes paid by the people of the country and exploit them are ex...
Q: For the demand function q= D(p)%3D201-p, find the following. a) The elasticity b) The elasticity at ...
A: According to the Bartleby guidelines, we answer only the first question in case of multiple question...
Q: A) The town of Dimmsdale is a popular tourist destination. The problem is, the tourists are not alwa...
A: Market demand : Qd = 700 - 5p => p = 140 - Q/5 Marginal Cost = 50 Optimal condition for number...
Q: Do operating strategies of average cost minimization and profit maximization always lead to identica...
A: Average cost reduction and profit maximization are operating techniques that provide comparable rate...
Q: An investment of $100,000 in safe 10-year corporate bonds yields an average of 9% per year, payable ...
A: First Of all we will calculate nominal interest rate after tax:-
Q: What is the present value or price of a $150 annual perpetuity if the returns on similar contracts a...
A: Given Data, Value of annual perpetuity= $150. Discount rate= 7%. Formula to calculate present...
Q: QUESTION 8 Suppose that the production function y-f(x_1,x_2) (where: y is output level, x 1 is a var...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: A monopolist charges a single price for its product, sells 100 units, and has a marginal revenue of ...
A: Q = 100 MR = 30 MC = 500 Fixed Cost = 500
Q: Who did Milton Friedman advise with his economic theory?
A: Milton Friedman was an American economist and statistician who believed strongly in free market capi...
Q: A manufacturing company plans to replace an existing production line with a newer and more energy ec...
A: Annual Savings in year 1 = Energy Saved* Price of energy = 200,000*0.1 = 20,000 Now value of thes...
Q: How does the hypothesis of diminishing returns (MP &AP) influence the behaviour of costs (MC & AC)?
A: In economics, diminishing returns (also known as decreasing marginal returns) refers to the decrease...
Q: If the multiplier is 5 , what is the marginal propensity to save (MPS)? 5 0.20 0.80 0.50
A: The value of multiplier is given to be as = 5 We have to calculate the value of marginal propensity...
Q: All of the following statements are correct except A. economic growth is the expansion of production...
A: The answer is as follow
Q: What are “Adam Smith’s laws of the market” What does Adam Smith think is behind the economy/market? ...
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: Suppose there are 2,000 potential consumers in the Chestnut Hill market for tablet computers. All co...
A:
Q: 0*Y+ 100 0*Y+ 80 0*Y+ 80
A: Given that, MPS is 0.80 Autonomous consumer spending is 100, We have to calculate aggregate consumpt...
Q: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer...
A: Fiscal policy is a policy that is used by the government of a country in order to influence a nation...
Q: How are Milton Friedman’s theories a critique/response to Keynes’ theories?
A: Milton Friedman advocated for a free market economy with minimal government intervention.Friedman, i...
Q: What is the importance of mircro economics in pur day to day life?
A:
Q: L0.3 10.4) The following data are available for a project: Present worth of benefits $17 000 000 Pre...
A: A benefit–cost ratio is an indicator, used in cost–benefit analysis, that attempts to summarize the ...
Q: Countries will be net of products when they have a(n) -_ of resources? exporters, abundance )importe...
A: Net export is the value of total exports minus the value of total imports. The export is the number ...
Q: Consider a competitive industry with a large number of firms, all of which have identical cost funct...
A: In the short run, a competitive firm produces output where price is equal to its marginal cost.
Q: B/ Consider the Open Economy with Government Participation (i.e. the Mixed Economy): Planned Expendi...
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, I will be ...
Q: How is Milton Friedman’s economic theory used in the current (last 20-40 years) fiscal policy?
A: Friedman's economic views evolved into monetarism, which challenged key aspects of Keynesian economi...
Q: 1. The cost in dollars, of producing x golf balls is given by: C(x) = 0.35x + 64 000 The average cos...
A: Answer -
Q: In the short run, the hot dog seller Doug's Dogs has a single variable input, labor (1) W = 50 The p...
A:
Q: What is called state enterprise and why it is important for the consumers/what are its merits?
A:
Q: 1. On the graph below, show a price ceilling at $3. a. Illustrate and identify the resulting XS supp...
A: "As per the guidelines answer is given to the first question" 1) "Price ceiling is a limit on price ...
Q: [1st_itemBCD] *problem situation in the photo below* Required: In Problem 1, what is Merrilyn’s ac...
A: Accounting Profit = Total Revenue - Total Explicit Cost Economic Profit = Total Revenue - Total Expl...
Q: pool will cost $2.5 million to construct and will cost $300 000 per year to operate, but willbi bene...
A: A and B part solved below,
Q: Given: Qd =– 9P + 2,557 Qs = P – 75
A: Equilibrium is defined as a position where the economy reaches a stable state. The forces of demand ...
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- What are government transfer payments? Are they included as part of the government spending component of GDP?Explain how national income is determined in a 3-Sector Economy ?Use the following to answer questions Item In trillions of Rs. GDP 17.6 Government purchases 1.9 Transfer payments 0.9 Exports 0.8 Imports 1.5 Net foreign factor income 05 Refer to the table above. The sum of private-sector investment and consumption in this economy is
- Explain the Basic Equation of National Income with its genesis meaning.Write an essay discussing the determinants of national income, consumption, saving and investments, modelling the economy and the government sectorThe table below shows the data for the country of Magnolia. Complete the national income accounting framework by filling in the missing data. Remember to enter a minus (-) sign to indicate negative values. Expenditures Consumption Gross investment Government spending Net exports Gross domestic product at market prices 100 Less depreciation Less indirect taxes (net of subsidies) Net domestic product at basic prices +/- net foreign factor income Net national product at basic prices 320 350 30 260 50 160 70 1100 220 100 -10 780 320 06 160 130
- The following table shows the national income data for an economy in year 2020. ITEMS Dividends Interest on government loan Undistributed profit Gross interest Subsidies Corporate income taxes interest on consumer loan Indirect taxes Gross Domestic Product at factor cost Depreciation Wages and salaries Rent Corporate income before taxes You are required to calculate: (a) net interest. (b) corporate profit. (c) National Income. (d) Gross National Product at factor cost. Net factor income from abroad. RM (Million) 160 100 125 990 120 180 90 160 4,370 250 1,080 645 710draw a circular flow diagram where income is $200m consumption is $120m, tax/government spending is $50m and there is no international trade Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.How do budget surpluses and budget deficits affect the consumption and investment components of GDP
- CO Quintile of 1st Population 2nd 3rd 4th 5th Quintile's % of Income, Ethiopia, 2010 Quintile's % of Income, Panama, 2010 Quintile's % of Income, United States, 2010 8 13 16 21 42 8. 13 20 56 10 14 20 51 United States data from the Congressional Budget Office at CBO.gov. Before-tax Income, rounded to whole %s. Data for other countries from WorldBank.org. rounded to whole %s. Report your answers to two decimal places. According to these data, the Gini coefficient for Ethiopia in 2010 is The Gini coefficient for Panama in 2010 isWhat are the effect of taxes on saving and consumption of less income people in low income economies.What are the major forms of household income? Contrast the wage and salary share to the profit share in terms of relative size. Distinguish between a durable consumer good and a nondurable consumer good. How does the combined spending on both types of consumer goods compare to the spending on services?
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