Microeconomics (12th Edition) (Pearson Series in Economics)
12th Edition
ISBN: 9780133872293
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 5, Problem 3SPA
(a)
To determine
Identify the marginal social benefit if the total distance traveled is 60 miles.
(b)
To determine
Identify the marginal private benefits of each traveler, if the total distance travel is 60 miles.
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3. Consider the case of everyone being wealthier in the future, such as from a positive
productivity shock (computers, internet, robotics, AI).
A. Begin from the baseline preferences and endowments.
Give both people an endowment of 1000 pounds for the first period and 1100 pounds for the
second. AI increases the supply of second period goods by 10%.
Note that there is now a total of 2000 pounds in the first period and 2200 pounds in the
second.
Determine the equilibrium interest rate.
r =
%
B. Begin from the baseline preferences and endowments.
Give both people an endowment of 1100 pounds for the first and 1100 pounds for the second
periods. AI increases the supply in all periods by 10%.
Note that there are now 2200 pounds in the first period and 2200 pounds in the second.
Determine the equilibrium interest rate.
r =
%
C. Explain how productivity and the real rate are connected.
Write at least five sentences.
Not use ai please
Not use ai please
Chapter 5 Solutions
Microeconomics (12th Edition) (Pearson Series in Economics)
Ch. 5.1 - Prob. 1RQCh. 5.1 - Prob. 2RQCh. 5.1 - Prob. 3RQCh. 5.1 - Prob. 4RQCh. 5.2 - Prob. 1RQCh. 5.2 - Prob. 2RQCh. 5.2 - Prob. 3RQCh. 5.2 - Prob. 4RQCh. 5.2 - Prob. 5RQCh. 5.2 - Prob. 6RQ
Ch. 5.3 - Prob. 1RQCh. 5.3 - Prob. 2RQCh. 5.3 - Prob. 3RQCh. 5.4 - Prob. 1RQCh. 5.4 - Prob. 2RQCh. 5.4 - Prob. 3RQCh. 5.4 - Prob. 4RQCh. 5 - Prob. 1SPACh. 5 - Prob. 2SPACh. 5 - Prob. 3SPACh. 5 - Prob. 4SPACh. 5 - Prob. 5SPACh. 5 - Prob. 6SPACh. 5 - Prob. 7SPACh. 5 - Prob. 8SPACh. 5 - Prob. 9SPACh. 5 - Prob. 10SPACh. 5 - Prob. 11APACh. 5 - Prob. 12APACh. 5 - Prob. 13APACh. 5 - Prob. 14APACh. 5 - Prob. 15APACh. 5 - Prob. 16APACh. 5 - Prob. 17APACh. 5 - Prob. 18APACh. 5 - Prob. 19APACh. 5 - Prob. 20APACh. 5 - Prob. 21APACh. 5 - Prob. 22APACh. 5 - Prob. 23APACh. 5 - Prob. 24APACh. 5 - Prob. 25APACh. 5 - Prob. 26APACh. 5 - Prob. 27APA
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