Which of the following explains "market failure" (or non-via O a. consumption-smoothing. O b. moral hazard. Oc. adverse selection. O d. reduced levels of "self-insurance." O e. diminishing marginal utility or benefit.
Q: With a current inflation rate of 1.8%, Real GDP = $23,450, and Potential Real GDP = $22,900, what is…
A: To find the federal fund rate, use the below formula. Federal Fund Target Rate = Inflation rate +…
Q: Smoothing consumption and income are motivations for several actions that individuals take- saving,…
A: Consumption Soothing Consumption smoothing is an macroeconomic framework that explains people's need…
Q: Lwando owns a delicatessen, namely Foodies Paradise. Lwando has determined that he needs R5 000 cash…
A: In this question we have to find the daily trips to the bank and leather costs of inflation.
Q: Outintag imposting busikess) produchton and teceurical. produchion. (as a Koming up outline kould…
A: Information security events, cyber attacks, password theft, service disruptions, and other…
Q: The Lindahl equilibrium involves producing how many units of the public good? At what tax share?
A: Public goods are those goods that are nonrival and nonexcludable. Nonrival means one cannot consume…
Q: 1. There are two mobile phone firms operating in a market; FF (Firm 1) and Wodaphone (Firm 2). The…
A: In this question:- market demand=P=75-0.5Q1+Q2 Total cost of two firms:- firm 1=30Q1 firm 2=30Q2 so…
Q: Alamo Car Rentals In the early 1990s, Alamo was the most profitable (as a percentage of sales) and…
A: Pricing is defined as the money that the sellers can charge for the good or service that it provides…
Q: Perfectly competitive firm Doggies Paradise Inc. sells winter coats for dogs. Dog coats sell for $72…
A: A perfectly competitive firm is a price taker, which means it takes the price determined by the…
Q: The Recovery: Utilizing the Aggregate Demand/Aggregate Supply framework describe what has happened…
A: Aggregate demand and supply are direct to the idea of demand and supply but are involved at a…
Q: Briefly explain what is meant by elasticity of demand and its uses and the factors that influence…
A: Elasticity is used to determine by how much the quantity demanded or supplied changes due to the…
Q: The town council of Frostbite, Ontario, is trying to decide whether to build an outdoor skating rink…
A: According to the question, Cost of building skating rink = $1.2 million Demand: q = 1600 - 0.8p
Q: Draw and carefully describe a graph that utilizes the Aggregate Demand/Aggregate Supply model that…
A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: Is it possible to assume there is crowding out as well with a formula? If there was crowding out of…
A:
Q: Which of the following statements about the supply of reserves in the reserve market is true?
A: Reserve in economics is defined as the amount of money that is in hand, i.e. which can be used for…
Q: A monopolist maximizes profit at the quantity at which: O P= AC. MR = AC. %3D O MR = MC. OP = MC.
A: A monopoly is a market arrangement in which only one supplier or business operates.This single…
Q: A business has the following costs: Rent: (none, the owner owns the building. Similar stores rent…
A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…
Q: 1.) Production, Inputs, and Cost: Building Blocks for Supply Analysis The firm can generally…
A: The production function shows the relationship between inputs and output. It means the inputs are…
Q: Starting with the generalized profit function, derive the condition for profit maximizing level of…
A: Total cost is the expenditure incurred in the production of goods and services. The total cost is…
Q: Economics A. What is an "Ethereum Request for Comment"? B. Who is an “oracle"? What is an oracle…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: Assume we are in a Ricardian world, where there are 2 countries: Home and Foreign, 2 goods: x and y,…
A: The relative price of good X = units of good Y produced / units of good X produced
Q: (a) The following table shows the outputs and prices of three products produced by an economy in…
A: * SOLUTION :- Given that ,
Q: Explanation all subparts correctly and details
A: The demand curve shows the inverse relationship between price and quantity demanded. The demand…
Q: Economics
A: The link between two or more variables is investigated using regression analysis. The regression…
Q: The world population will double in the next 10 years, but you personally are unlikely to eat only…
A: Hunger is a circumstance in which an individual is unable to eat enough food to meet basic…
Q: Define and explain "steady state" in the Solow model. Assume that the economy initially is in the…
A: The point where the depreciation and investment equates to each other is the point of steady state…
Q: Side 24 A government wishes to reduce air pollution with SO2 through taxes or emission permits.…
A: Protecting the environment is an issue of ethics, morality, and sustainability for many…
Q: tends to discourage firms from making physical capital investments. O Government borrowing O Large…
A: Physical capital includes tangible and man-made objects that a firm purchases or invests in for the…
Q: 4. Firm 1 and Firm 2 are in a duopoly, earning each annual profits of £10 million per year. Firm 1…
A: Duopoly Market A Duopoly is a market with Only Two competing firms. The firms have complete control…
Q: n the last year there has been a significant increase in the inflation rate in Canada. Use the…
A: The LM curve shows the direct relationship between interest rate and quantity of money. It means the…
Q: Your economist friend told you that because of the change in demand described in part (c), price…
A: Price elasticity of demand refers to the percentage change in quantity demanded with respect to the…
Q: A farmer produces three types of crops A, B and C on his land. A covers 50% of the land, B 30 % and…
A: In this situation, a farmer produces three types of crops A, B and C on his land. A covers 50% of…
Q: Figure 1 shows the 'Great Gatsby Curve' for a number of countries in (2019): Figure 1- Gatsby Curve…
A: Introduction The great Gatsby curve tells the relationship between intergenerational mobility and…
Q: Steve and Sons Solar Panels has a production function of Q 4KL and faces a wage rate of $8 per hour…
A:
Q: Suppose that economists observe than an increase in government spending of $6 billion raises total…
A: Crowding out is a situation when there is a reduction in private investment spending due to an…
Q: How does globalization affect religious beliefs and practices?
A: Globalization:- Globalization is the easy movement of individuals and things beyond boundaries. It's…
Q: (d) Consider a simultaneous-move game between two firms choosing to sell their product at either £6,…
A:
Q: The table shows total cost and total revenue information for a perfectly (or purely) competitive…
A: In perfect competition there are large number of firms selling homogeneous goods.
Q: n the last year there has been a significant increase in the inflation rate in Canada. Use the…
A: The aggregate demand curve shows the negative relationship between the price level and the total…
Q: Why is it socially efficient to set marginal benefits equal to marginal costs rather than abating…
A:
Q: 4. The graph below shows the efficient contracts and the contract curve. a. Explain the relationship…
A: Contract curve is the combination of all the pareto efficient points in an edgeworth box. It is the…
Q: Which of the following equations does not represent a plausible production function? A) B) F(K,L) =…
A: Production function depicts the functional relationship between inputs (K and L) and output (Q) The…
Q: For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in the postal business…
A: The Royal Mail’s minimum average cost is £2 at 100 million deliveries The minimum marginal cost is…
Q: Cincinnati Pizza produced and sold 1,500 pizzas last month and had total variable ingredient costs…
A: The process of conversion of inputs being used into output that is used for consumption by…
Q: THE SIMPLE KEYNESIAN MACROECONOMIC MODEL CONCLUDES THE FOLLOWING ABOUT THE SOUTH AFRICAN ECONOMY
A: In the 30 months leading up to February 2006, it rose with a goal range of 3% to 6%.
Q: Homework (Ch 16) Place the black point (plus symbol) on the graph to indicate the short-run…
A: Monopolistically competitive market:- Monopolistic competition describes a market where several…
Q: Suppose that the following equations describe goods and money market equilibrium (symbols are as…
A: IS curve shows an inverse relationship between output level and interest rate. LM curve shows…
Q: Explain globalization with 10 social factors with 2 examples of each factor.
A: The social factors of globalization allude to the effect of globalization on the life and work of…
Q: 1. X1 and x2. The price of x, is $80 per unit and the price of x2 is $40 per unit; x1 and x2 are…
A: Disclaimer :- As you posted multipart questions we are supposed to solve the first 3 questions only…
Q: In the Neo-Classical macro model, a decrease in the money supply will O Decrease the price level,…
A: Answer is given below
Q: Which theories explain property rights in companies according to their ownership?
A: The rights to use, receive money from, and transfer or trade goods and resources are known as…
Step by step
Solved in 3 steps
- Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utility—maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.The phrase "Diminishing Marginal Utility" refers to the fact that O The more people consume a good or service, the total satisfaction that they receive decreases O The more people consume a good or service, the more willing suppliers are to produce it O The more people consume a good or service, the less additional satisfaction they receive O The more people consume a good or service, the more additional satisfaction they receiveAssume that you are in the business of building houses in United Kingdom. You have analyzedthe market carefully, and you know that at a price of £120,000, you will sell 800 houses peryear. In addition, you know that at any price above £120,000, no one will buy your housesbecause the government provides equal-quality houses to anyone who wants one at £120,000.You also know that for every £20,000 you lower your price, you will be able to sell an additional200 units. For example, at a price of £100,000, you can sell 1,000 houses; at a price of £80,000,you can sell 1,200 houses; and so on.a. Sketch the demand curve that your firm faces.b. Sketch the effective marginal revenue curve that your firm faces.c. If the marginal cost of building a house is £100,000, how many will you build and whatprice will you charge? What if MC = £85,000?
- People are more likely to purchase a consumer ratings magazine that reviews new automobiles before buying a new car than they are to purchase a consumer ratings magazine that reviews pens and pencils before buying a new pen or pencil. Which of the following best explains this behavior? O Because the consumer ratings magazine must have a higher price for the issue reviewing pens and pencils. Because the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information. Because people generally do not know which products are reviewed by these consumer magazines. None of the above explain this behavior.Price Keram H 1 1 4 Becky's D for Blueberries Demand Refer to the graph above to answer this question. The graph shows Becky's demand for blueberries which can be purchased in any quantities and sold at any price What is Becky's total willingness to pay for 6 kilograms of blueberries if the price of each kilogram of blueberries is $27 Multiple Choice O O O O O $12. Cannot be determined. $18. $6. $2Suppose there are two consumers in the market for a good, consumer 1's inverse demand function is p=80 – 24, and consumer 2s inverse demand function is p =36 - : Suppose further that the inverse market supply is p 20 + q. What is the competitive equilibrium? Oa. Competitive equilibrium price is 28 and competitive equilibrium quantity is 8 O b. Competitive equilibrium price is 40 and competitive equilibrium quantity is 8 O C Competitive equilibrium price is 40 and competitive equilibrium quantity is 20 O d. Competitive equilibrium price is 28 and competitive equilibrium quantity is 20
- Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, “What is the right amount of variety? Can there be too many varieties of shoes, for example?” the bold question i dont understadnwhat they are trying to ask me to doYour neighborhood pizza restaurant has a deal: Pay $3 at the door, and eat as much pizza as you want for lunch. What is the marginal cost of eating your second slice of pizza? O $1.5 O Impossible to say if we don't know how many slices you eat in total. O so O $3According to Alan Krueger, drivers who partner with Uber appear to be attracted to the platform in large part because O the level of compensation O the fact that earnings per hour do not vary much with hours worked, which facilitates part-time and variable hours of the flexibility it offers O all answers are correct
- Can economic analysis provide a final answer to the question of whether the government should intervene in markets by imposing price ceilings and price floors? Why or why not? O A. Economic analysis can provide such an answer because it seeks to address both positive and normative questions such as "what is" and "what ought to be." O B. Economic analysis cannot provide such an answer because it seeks to address positive questions such as "what is." OC. Economic analysis can provide such an answer because it seeks to address normative questions such as "what ought to be." O D. Economic analysis can provide such an answer because it seeks to address positive questions such as "what is." O E. Economic analysis cannot provide such an answer because it seeks to address normative questions such as "what ought to be."The graph shows the market for paper. The government passes a new law that limits the quantity of paper that producers sell to 40 tons of paper a day. C because This market for paper is O A. efficient; production is greater than zero O B. inefficient; the marginal cost of the 40th ton of paper is greater than the marginal benefit from the 40th ton of paper inefficient; more paper could be produced O C. O D. inefficient; the marginal benefit from the 40th ton of paper is greater than the marginal cost of the 40th ton of paper O E. efficient; the marginal cost of the 40th ton of paper equals the marginal benefit from the 40th ton of paper Draw the deadweight loss when production is 40 tons of paper a day. Label it. 20.00 18.00- 16.00- 14.00- 12.00- 10.00- 8.00- 6.00+ 4.00- 2.00- Price (dollars per ton) 6.00 0.00+ 0 S ID 40 60 80 100 120 Quantity (tons per day) >>> Draw only the objects specified in the question. 20 OU 140Next question The demand curve is also the O A. total benefit curve. B. total cost curve. O C. marginal deadweight cost curve. O D. marginal benefit curve. O E. marginal cost curve. O Time Remaining: 00:53:28 Next (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e