Economics Question

Q: Most people in the country of Classica tend to keep $3 out of every $100 of their cash holdings in t...

A: Reserves in deposits = 4% Total Wallet reserves = (3/100)*100 = 3% If total deposits is equal to 100...

Q: Q.1.1 Kenya has a comparative advantage over Uganda in the production of sugar if it: (2)(1) Is able...

A: Comparative advantage is a concept which was given after the theory of absolute advantage and which ...

Q: What is the difference between the income effect and the substitution effect of aprice increase for ...

A: Income effect shows the impact increase in the purchasing power on consumption, whereas substitution...

Q: Sarah spends her monthly entertainment budgeton books and movies. Sarah’s initial utility-maximizing...

A: Substitution effect induces consumers to buy goods that are cheaper. A normal good is a good whose d...

Q: 5. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and erasers. ...

A: GDP refers to Gross Domestic Product which is the total amount of goods and services produced in the...

Q: What types of investments and expenditures are typically considered in the capital budgeting process...

A: Capital budgeting refers to the process that estimates the expenditure and benefits that derived fro...

Q: Suppose you live in a community of 5,000 people where everyone wants to work and seeks employment. I...

A: Unemployment Rate is the total number of people who are willing to work but are jobless due the chan...

Q: Consider a consumer with the following utility function for consumption and leisure: U(R, C) = 160 I...

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first three su...

Q: Explain it correctly

A: We know, nominal interest rate = Real interest rate + inflation rate 

Q: What are good economic institutions, why do so many developing countries lack them, and what can dev...

A: Economic institutions are the institutes or organisations that deal with money or with managing the ...

Q: Calculate the effect of a price floor on the equilibrium priceand quantity.

A: Answer - Price floor - It is the minimum level of price imposed on the commodity or good. Under this...

Q: Define Surplus ?

A: Answer - Surplus - It is the excess amount of any resource which is being used in a firm or any othe...

Q: Using two teams, initiate an argument that agrees (Pro) with the Fed actionand an argument that oppo...

A: Fed is the central body which governs the monetary policy of the country and controls the financial ...

Q: What are the incentives for firms in an oligopoly to collude or work together? Has price collusion h...

A: Oligopoly: There are only a few but large producers/firms, who have catered to a huge group of custo...

Q: Its is known that the demand function for a product is P = 24 - 1/2Q and the supply function Q = 4 +...

A: Equilibrium occurs at the point where the demand and supply is equal. For including the tax, it is r...

Q: 1. Classify each pair of goods as substitutes, complements, or independent. - shoes and sandals  - b...

A: According to the nature of demand of the good, a good is classified as a substitute, complement or i...

Q: TravelEz sells dollars at a rate of ($1.40)/(1 euro) and buys dollars at a rate of ($1.80)/(1 euro)....

A: The TravlEz sell dollars or buys the euros at a rate of =$1.40 / 1 euro The TravlEz sells dollar or ...

Q: Investment A costs $10000 today and pays back $11500 two years from now. Investment Banking costs $8...

A: Cost of investment A = $10000 Pays back after two years = $11500 Investment in bank cost = $8000 Pay...

Q: You currently have a television that you want tosell. You can either pick a price and try to sell it...

A: Answer- Producers Surplus : - It total amount that a producer will benefit from producing and sellin...

Q: Most people in the country of Classica tend to keep $3 out of every $100 of their cash holdings in t...

A: Wallet reserve can be calculated as follows: Wallet reserve=3100=3% Thus, the wallet reserve is 3%  

Q: Is either helicopter money or quantitative easing preferred in times of severe recessions in order t...

A: The money supply of the economy is determined basically by the central bank of the economy. When the...

Q: Solve it early and correctly I upvote definitely

A: When prices of the current year are expressed as a percentage of base year price, then index numbers...

Q: With regard to demand and Supply, explain the point of MarketEquilibrium

A: Consumers ability to purchase goods and services at given prices during a specific period of time is...

Q: .SOlVE ONLY HIGHLIGHTED QUESTION   Suppose we observe that US economy is experiencing low unemployme...

A:  The two goals that the Federal reserve is required to pursue with monetary policy are : Maintain f...

Q: Q2: Micro VS Macroeconomics? Classify the following questions as Microeconomics or Macroeconomics an...

A: To understand the economic behavior of various market factors, the learning of these factors is clas...

Q: You can spend spring break either working at home for $80 per day for five days or go to Guam for th...

A: The opportunity cost is the value of the next best alternative. 

Q: Draw the price effect and the quantity effect fora price change from $60 to $70. Which effect islarg...

A:   Meaning of Price Elasticity of Demand and Price Elasticity of Supply: The extent of the change of ...

Q: The table gives the demand and supply schedules for mechanical pencils. Quantity demanded Quantity s...

A: Market equilibrium refers to a state in which the market supply is equal to the market demand that r...

Q: Suppose a Farmer has a fixed resource of 80 acres planted in corn. If the farmer does not cultivate ...

A: Number of cultivation Output Marginal benefit 1 50 - 2 57 7 3 61 4 4 63 2 From the above ...

Q: Other things held constant, what happens to the supply curve for coffee sold at coffee shops if ther...

A: ANS If the supply (SS) of coffee changes due to any factor other than the price of coffee itself the...

Q: Consider a monopoly market in which the initial price is $40K, the initial quantity is 20, and the e...

A: Note: Hi, you've posted multiple questions and we can answer only 3 subparts as per our policy. Kind...

Q: Explain it correctly I upvote

A: We are given the following information: IS equation, Y =750-s-1000i+5e(Pf/P) LM equation, i = 0.5(1+...

Q: Calculate the effect of a subsidy on the equilibrium price and quantity.

A: The subsidy is a payment by the government to producers for each unit produced. It encourages suppli...

Q: the following question in the image provided

A:  (i) Gross national product at market price = wages and salaries+ social security contributions by e...

Q: Why is monopolistic competition the most common market structure?

A: Monopolistic competition is a market where differentiated products are being supplied by many firms ...

Q: In which situation can the simple money multiplier value equal that of the extended money multiplier...

A: The Money Multiplier says how an initial deposit will contribute to a greater final increase in the ...

Q: Your friend tells you that although she has a largeamount of M&Ms and just a few Skittles, she w...

A: Answer - Indifference Curve - An indifference curve is a graph showing combination of two goods that...

Q: A consulting engineering firm wants to make a preliminary cost estimate for the design/construct of ...

A:

Q: Suppose that the price of basketball tickets at your college is determined by market forces. Current...

A: (a)   The demand and supply curve can be illustrated as follows.  

Q: Define economies of scale

A: Economy of scale is a microeconomic term used as an important element of productivity growth. Produc...