In which year was water the most expensive in real terms? Show work. What was the real wage for Jakku’s minimum wage of $8.25 in 2014? Evaluate Jakku’s economic health. You must cite results from your previous calculations. Consider the market for loanable funds and assume that market is in equilibrium. Suppose that the overall income levels increase. Describe the initial effect, how the market adjusts, and how equilibrium is affected. The table below represents the goods produced in Surrey. Bread and water are consumed by the citizens of the city. Half of all plows are used by the city council, while the rest are used by citizens. Metal is solely used to produce plows. When necessary, use 2013 as the base year. The typical consumer buys 10 units of bread, 100 units of water, and 2 plows. Use this table for questions 2 – 9.| Year | Bread Price | Bread Quantity | Water Price | Water Quantity | Plows Price | Plows Quantity | Metal Price | Metal Quantity ||------|-------------|----------------|-------------|----------------|-------------|----------------|-------------|----------------|| 2011 | $2 | 100 | $1 | 1000 | $150 | 60 | $43 | 800 || 2012 | $3 | 110 | $1 | 1100 | $200 | 70 | $44 | 875 || 2013 | $3 | 120 | $1 | 1100 | $200 | 70 | $46 | 900 || 2014 | $5 | 120 | $2 | 1100 | $210 | 40 | $49 | 934 |

We need to calculate real value of water in each year to determine in which year it is most…

In which year was water the most expensive in real terms? Show work. What was the real wage for Jakku’s minimum wage of $8.25 in 2014? Evaluate Jakku’s economic health. You must cite results from your previous calculations. Consider the market for loanable funds and assume that market is in equilibrium. Suppose that the overall income levels increase. Describe the initial effect, how the market adjusts, and how equilibrium is affected.

In which year was water the most expensive in real terms? Show work. What was the real wage for Jakku’s minimum wage of $8.25 in 2014? Evaluate Jakku’s economic health. You must cite results from your previous calculations. Consider the market for loanable funds and assume that market is in equilibrium. Suppose that the overall income levels increase. Describe the initial effect, how the market adjusts, and how equilibrium is affected.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In which year was water the most expensive in real terms? Show work.
What was the real wage for Jakku’s minimum wage of $8.25 in 2014?
Evaluate Jakku’s economic health. You must cite results from your previous calculations.
Consider the market for loanable funds and assume that market is in equilibrium. Suppose that the overall income levels increase. Describe the initial effect, how the market adjusts, and how equilibrium is affected.

The table below represents the goods produced in Surrey. Bread and water are consumed by the citizens of the city. Half of all plows are used by the city council, while the rest are used by citizens. Metal is solely used to produce plows. When necessary, use 2013 as the base year. The typical consumer buys 10 units of bread, 100 units of water, and 2 plows. Use this table for questions 2 – 9.

| Year | Bread Price | Bread Quantity | Water Price | Water Quantity | Plows Price | Plows Quantity | Metal Price | Metal Quantity |
|------|-------------|----------------|-------------|----------------|-------------|----------------|-------------|----------------|
| 2011 | $2 | 100 | $1 | 1000 | $150 | 60 | $43 | 800 |
| 2012 | $3 | 110 | $1 | 1100 | $200 | 70 | $44 | 875 |
| 2013 | $3 | 120 | $1 | 1100 | $200 | 70 | $46 | 900 |
| 2014 | $5 | 120 | $2 | 1100 | $210 | 40 | $49 | 934 |

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#18. What would happen in the market for loanable funds if the government were to increase the tax on interest income? a The supply of loanable funds would shift right. b The demand for loanable funds would shift right. c The supply of loanable funds would shift left. d The demand for loanable funds would shift left.
Where does the demand for loanable funds come from in a closed economy? How does a government adopting a policy of taxing investment from the private sector impact the demand for loanable funds? What happens to the equilibrium interest rate following this policy? Illustrate using the supply and demand in the market for loanable funds.
The following graph shows the market for loanable funds. For each of the glven scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. Treat each scenario separately by resetting the graph to its original state before examining the effect of each. individual scenarlo. (Note: You will not be graded on any changes you make to the graph.) Demand Supply Supply Demand LOANABLE FUNDS (Billions of dollars) INTEREST RATE (Percent)
What happens to the market for loanable funds when interest rates increase? Planned investments increase. Planned investments is not effected There is a decrease in demand for loanable funds. There is a decrease in quantity demanded for loanable funds.
Which of the following is one of the reasons that the demand curve for loanable funds is downward sloping? A lower real interest rate discourages domestic investors from purchasing foreign securities and encourages foreign investors to purchase domestic securities. A higher real interest rate encourages people to save. OA lower real interest rate discourages people from saving. OA higher real interest rate makes borrowing more expensive, Which of the following is one of the reasons that the supply curve for loanable funds is upward sloping? A higher real interest rate makes borrowing less expensive. OA lower interest rate makes borrowing less expensive. OA lower real interest rate encourages domestic consumers to purchase foreign securities and discourages foreigners from purchasing domestic securities. A lower real interest rate makes saving less appealing.
Household time preferences increase (people become less patient). Which of the following graphs correctly shows how the loanable funds market changes? Interest rate Loanable funds market Interest rate Savings/Investments Loanable funds market ☆ Interest rate Loanable funds market # Savings/Investments Savings/Investments Interest rate Loanable funds market Savings/Investments
If expectations about future income change, there is no change in saving until income actually changes. a decrease in saving if people expect income to increase in the future. an increase in saving if people expect income to increase in the future. a decrease saving if people expect income to decrease in the future. a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve.
Draw a model for the market of loanable funds. Suppose the equilibrium interest rate is10 percent. Now, show the effects of a law that states no funds can be lent at a rate greater than 5 percent.
Show graphically and explain how an increase in household confidence about future income affects the loanable funds market