The following graph shows the supply of and demand for capital in a market over the last year. You can see that thedemand for capital has increased over the last year (the demand curve shifted to the right). Place the black X at theequilibrium interest rate and the quantity of capitalINTEREST RATE, r (%EquilibriumD21816D11412108S20 2 4 6 810 12 14 161820CAPITAL (Billions of dollars)Clear AllThe market interest rate increased by 2.0%, and the amount of capital borrowedbillion.Which of the following factors could be responsible for the change in demand shown in the graph?New technological advances opened up more production opportunities for businesses.Households began saving a greater percentage of their income.Expected inflation decreased.The Federal Reserve (the Fed) decided to relax its monetary policy and expanded the money supply.y20co

Answer - The market interest rate increased by 2.0%, and the amount of capital borrowed "…

Answered: The following graph shows the supply of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. State Kaldor's stylized facts (4 of them). Derive their implications for the share of national income paid to the owners of capital, the capital income share. Assume firms combine capital and labor to produce output according to Y = K^(a)*N^(1-a) where a is the elasticity of output to capital, i.e. the percentage change in output for a given percentage change in capital. What type of data would be informative of the value of this elasticity? Explain your answer and any assumptions you may need to reach your conclusion.
A company has sold 5000 units of 100 dinars its own product at a price of per unit. If you know that the rent of the company's building for the specified financial period = 75,000 dinars, the wages of administrative staff = 50,000 dinars, and the cost of materials used in the production of the sold units = 15 dinars / unit, and the cost of work (wages of workers) in the production of units sold = 5 dinars/ unit, and the amount of depreciation for fixed assets for the financial period = 15000 dinars, and marketing expenses of units sold = 7 dinars / unit, the contribution margin per unit is? 77 73 82
1. Is scarcity of nonrenewable resources a major problem? What kinds of physical and economic measures are relevant to understanding this issue, and in what ways can some of the measures be misleading? What do you think are the main issues relating to nonrenewable use? 2. Do you expect mineral prices to continue to increase, as shown in Figure 11.4? Which factors do you think will determine future mineral prices?
Suppose that a country has only two commodities, two factors of production, and no savings. The two commodities are wine (W) and cheese (C) and the two factors of production are capital (K) and labour (L). The country collects the following partial factor taxes: tKC is a tax on capital used in the production of cheese equal to 20%. tKW is a tax on capital used in the production of wine equal to 25%. tLC is a tax on labour used in the production of cheese equal to 20%. tLW is a tax on labour used in the production of wine equal to 15%. Which of the following would have the same outcome as the above taxes? A) Replacing tKW and tKC with a 22.5% tax on capital. B) Replacing tKC and tLC with a 20% tax on cheese. C) Replacing tKW and tLW with a 20% tax on wine. D) Replacing tLW and tLC with a 17.5% tax on labour. E) All of the above. Please explain
= Part B: Suppose you are given y₁ > 0, y2 = 0, a₁ 0,r> 0. What would happen to the opportunity set if i) the first period endowment y₁ increases or ii) the market interest rate (r) decreases? You should answer this question by drawing a figure (you can use pen and paper). Be sure to define the intercepts and slope of the opportunity set in each case. Please also answer this question in general terms.
Mary is a corn farmer in Iowa. If she does not irrigate his field, she can produce 120 bushels of corn per acre. If she applies 4 inches of irrigation water, she can produce 140 bushels of corn per acre. The application of 8, 12, and 16 inches of irrigation water can result in 160, 180, and 200 bushels of corn per acre, respectively. Graph the relationship between the amount of water applied and corn yield for Mary (Assume a straight-line relationship). Find and interpret the slope and Y intercept
xercise 5: Production and income distributionConsider and economy with the following production technology: ,Y = 9K1/3L2/3 wherethe aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is1.a) Write down the maximization problem of the firm.b) Compute the equilibrium wage and capital return.c) Compute total payments to labor and capital. Show Euler’s Theorem holds, i.e. showthat total payments to capital and labor equal the value of output.d) What share of output goes to labor and capital?e) Suppose there is an increase in L, what would be impact on wages and capital returns?Explain.
Suppose that the demand for loanable funds for car loans in the Milwaukee area is $10 million per month at an interest rate of 10 percent per year, $11 million at an interest rate of 9 percent per year, $12 million at an interest rate of 8 percent per year, and so on. If the supply of loanable funds is fixed at $15 million, what will be the equilibrium interest rate? If the government imposes a usury law and says that car loans cannot exceed 3 percent per year, how big will the monthly shortage (or excess demand) for car loans be? What if the usury limit is raised to 7 percent per year?
Consider an otherwise standard Arrow Debreu Equilibrium with some modifications. Suppose that households now are not allowed to own capital directly. Instead, firms own all of the initial capital stock ko and also make all future investments in capital. Households own all shares of the firms, and returns to the firms now include returns to capital. Make necessary changes to the firm's and the household's problems to fit the new arrangement, define the new equilibrium, and show that the equilibrium quantities and prices are same as before.
No1 ) Rob works as a loan officer for a major U.S. commercial bank, specializing in international loans. When considering loans to governments and businesses in other nations, Rob Multiple Choice must be aware of federal limits on the total amount of U.S. funds his bank can lend to foreign borrowers. can only make loans if his bank has funds in excess of those sought by American firms. is likely to approve loans to foreign borrowers if the return is high enough to justify the risk. must increase the dollar volume of loans they make to customers. must pay more to borrow from the Fed. have fewer funds available for lending. will find their balance sheets temporarily out of balance. must be careful to get approval from the International Monetary Fund. No. 2) When the Fed increases the reserve requirement, banks Multiple Choice must increase the dollar volume of loans they make to customers. must pay more to borrow from the Fed.…
10:55 All iCloud December 2, 2019 at 10:55 AM A village has five residents, each of whom has an accumulated savings of $50. Each villager can use the money to buy a government bond that pays 10% interest per year or to buy a year-old goat, send it onto the commons to graze, and sell it after one year. The price of the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons, which in turn depends on the number of goats sent onto the commons, as shown in table below. Assume that if a villager is indifferent between buying a bond and buying a goat, the villager will buy a goat. Number of goats Income per goat ($vear Price per 2-year old goat (S) on the commons 80 30 1 2 75 25 3 70 20 65 15 5 55 5 What will be the total village income if each villager decides how to invest based on his or her individual self-interest?
ở Quiz 2- (15%)-(Unit 6 and 7) (page 15 of 30) - Google Chrome A 2021.tle.courses.open.uwi.edu/mod/quiz/attempt.php?attempt=53700&cmid%=D40672&page=14 The Learning Exchange 2021 ECON2003 - Intermediate Macro Economics || | S2 21/22 Quiz navigation Time left 0:54:27 |1 || 2 || 3I 4 || 5 ||6 78 Question 15 When is a country said to move into a recession? Not yet 9 10 11 12 13 14 15 16 answered a. If actual output falls below the potential level of output. 17 18 19 20 21 22 23 24 Marked out of O b. If actual output falls. 0.50 25 26 27 28 29 30 O. If actual output falls for two consecutive quarters of a year. - Remove fiag O d. If actual output falls below the trend level of output. Finish attempt . Previous page Next page Reset user tour on this page 11:20 am P Type here to search 28°C 20/04/2022 近

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