2 QUESTION 7Calculate the Multipler using the Information provided in the table:YearGDPConsumptionMPCMultiplier2000100802005200150O 2.8aO 3.33O 5.251.22QUESTION 8Economists use a method called Total Factor Productivity (TFP) to assess technologicel change in the long-run. How ie this method performed?O Economists plot the growth rate of a sample of countries against thair initial income, and detact if there is a negative associationO Economiets perform Interviewe and surveys to Research + Development divielons in fims and universtles and infer the degree of InnovationEconomiets eubtract the difference in capital per worker in two moments in time, from the difference in productivity per worker in thoee moments. A positive value is indication of positivetechnologicel changeO Economiets analyze the technological index (Nesdaq) and estimate ita capitalization ratio

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Answered: QUESTION 7 Calculate the Multipler…

QUESTION 7 Calculate the Multipler using the Information provided in the table: Year Multiplier GDP 100 Consumption 80 MPC 2000 2005 200 150 O 288 O 3.33 O 5.25 O 1.22

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed in the attached table. If the tenants have the right to be free of loud music enforced through a property rule, how many bands will play in Rock‐n‐Roll Bar on a Saturday night? A. Zero B. One C. Two D. Three E. It depends on transaction costs
why choose A?
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There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below. Assume the bar owner has the right to hire as many bands as she likes. Iftransaction costs were $90, split between the bar owner and the tenants, how manybands would play? What would social welfare be? A. Three bands would play and social welfare would be ‐100.B. Two bands would play and social welfare would be 75.C. Two bands would play and social welfare would be ‐15.D. No bands would play and social welfare would be 0.E. Three bands would play and social welfare would be ‐190
There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below. If the tenants have the right to be free of loud music enforced through aproperty rule, how many bands will play in Rock‐n‐Roll Bar on a Saturday night? A. ZeroB. OneC. TwoD. ThreeE. It depends on transaction costs
E2
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