4 What impact would a combination of a higher level of investment confidence and a decrease in the government budget deficit have on real interestrate?Oa It would increase the real interest rateOb. It would leave the real interest rate unchangedOC. Interest rate could either increase, decrease or remain unchangedOd It would decrease the real interest rate Which of the following changes in personal income tax would lead to the smallest increase in consumption?O a. a $30 000 decrease in taxes, if MPC equals 0.25O b. a $15000 decrease in taxes, if MPC equals 0.6O C. a $20 000 decrease in taxes, if MPC equals 0.5O d. a $12 000 decrease in taxes, if MPC equals 0.75Oe.a $10 000 decrease in taxes, if MPC equals 0.2

Investment confidence indicates the confidence that investors have in investing in the production…

Which of the following changes in personal income tax would lead to the smallest increase in consumption? O a. a $30 000 decrease in taxes, if MPC equals 0.25 O b. a $15000 decrease in taxes, if MPC equals 0.6 O C. a $20 000 decrease in taxes, if MPC equals 0.5 O d. a $12 000 decrease in taxes, if MPC equals 0.75 Oe. a $10 000 decrease in taxes, if MPC equals 0.2

Which of the following changes in personal income tax would lead to the smallest increase in consumption? O a. a $30 000 decrease in taxes, if MPC equals 0.25 O b. a $15000 decrease in taxes, if MPC equals 0.6 O C. a $20 000 decrease in taxes, if MPC equals 0.5 O d. a $12 000 decrease in taxes, if MPC equals 0.75 Oe. a $10 000 decrease in taxes, if MPC equals 0.2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Name: Name: Name: $/unit 25 1 Fertilizing Fish When farmers fertilize their fields, the nitrogen from the fertilizer can get washed into streams which then feed into larger rivers. This "runoff" can cause damage to ecosystems and reduce the number of fish that can be caught by fishermen farther downstream. 20 Who are the producers of fertilizer? Who are the consumers of fertilizer? Who are the third parties affected by the externality? The graph below shows the market for fertilizer where P=2+0.5Q, and P = 20 - Qd. The marginal external cost of fertilizer = Q. This means, for example, if 3 units of fertilizer are used then the last unit of fertilizer causes fishermen to suffer a $3 loss...however, they are worse off by $1 from the first unit and $2 from the second unit as well for a total welfare loss of $6. What is the equation for your new curve? Label the curves on the graph, indicating if they're S or D, private or social. Draw & label a new curve demonstrating the externality. 15…
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UNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE COST AVERAGE VARIABLE COST TOTAL FIXED TOTAL AVERAGE TOTAL MARGINAL COST COST COST COST 012345678 0 $1 $2 6 $1 2 15 $1 27 $1 37 $1 45 $1 50 $1 52 $1 50 $1 ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ $2 $2 $2 $2 $2 $2 $2 $2
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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
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1. The strongest case for a rent ceiling via rent control is when . . .(a) Demand is inelastic because the rent ceiling may even increase supply.(b) Supply is elastic because the rent ceiling will increase the elastic supply.(c) When prices are high because then landlords are taking advantage of renters.(d) None of the above.