Economics Questions and Answers August 21, 2021

The production possibilities model illustrates an inverse relationship between two goods or services because a. production of different types will compete for limited resources. b. the opportunity cost of producing more of something will rise. some goods are more difficult to produce that others. C. O d. of diminishing returns.

Firm Z produces 49 units of output in a given year. They sell 30 units to consumers for $15.06 each. They sell 15 units to Firm X for $11.38 each. They do not sell the remaining units this year but instead add them to inventory. It costs $9.28 to produce each unit. What is Firm Z's contribution to this year's GDP?

Review the most current GDP measurement for the U.S. and one other country. Identify any differences between the two measurements and explain why the differences exist, i.e., the components of the measurements are different. I select Germany as other country?

Analyze the effect on the product market of falling business and consumer confidence in the economy using the Aggregate Expenditure (AE) model; and demonstrate how changes in the product market transmit into the money market and the foreign exchange market - and in turn affect the product market, evidencing the continuous flows between markets AE

Long-run economic growth in the Solow model is determined by the magnitude of g, the growth rate of technology. Do you expect g to increase or decrease in the next 20 years? Explain your answer.

Suppose the basic consumption level of Primaland is 10,000 million and that the MPC is 50 of the disposable income. Government spending there is 5,000 million. Taxes are per head and a function of income with T30000.1Y. Investment is a function of income and interest at I40000.3Y50,000r. Interest is 5 and Exports and Imports are both at 2000

Suppose the quantity theory holds at all points in time so that there is an immediate and full response of the price level (and no response of either velocity or output) of a change in the total stock of money in the economy. Andy, Martha, and Chris make up the whole population in this economy their holdings of money are 70, 50, and 80,

Describe at least 3 opportunity costs involved in the given scenarios

a. when you date a person for five years who refuses to commit to monogamous marriage. b. when you have an unplanned pregnancy but abortions are no longer legal.

Imagine that Chastity deposits 25,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 15. As a result of Chastitys deposit (show your calculations for all steps in this problem) Bank As reserves immediately increase by Bank As required reserves increase by . Bank As excess reserves increase by .

Identify and explain the role of monetary policy in stabilizing the economy?

Explain what is meant by the saying banks create money (Hint watch the meaning of the word, it has a double meaning). If the required reserve ratio from the Federal Reserve Bank is 6, what is the simple deposit multiplier If we observed that the actual deposit multiplier was lower than this in the real world, what might be some causes Please

Write one paragraph discussing the categories of Money and why banks need to regulate loans to reduce risk.

Write one paragraph examining how the aggregate shortterm compared to the longterm cause the shifts from recession to expansion and back to recession.

Write one paragraph reflecting upon the Federal Reserve Banking System and what controls must influence the contraction or expansion of the economy. How does increasing the money supply or decreasing loans regulate the state of the economy

Explain the sensitivity of your companyindustry to business cycles, whether it lags or leads the cycle, and if moves with or opposite to the cycle.

A fiscal expansion, which refers to an increase in government spending or a decrease in taxes, can have a variety of effects on investment in an economy. It depends on the specific circumstances of the economy, as well as the way that the fiscal expansion is implemented. Elaborate this statement?

Identify and explain the importance of diversification and risk management in financial stability.

Discuss Economic disruptions caused by the COVID-19 pandemic in detail? Provide at least 2 examples?

Differentiate between fiscal policies (government spending, stimulus checks) and monetary policies (interest rates, quantitative easing) and their roles during economic crises.

Discuss industries/sector that have been most instrumental in bringing down unemployment during the last decade and why?

In your opinion, is the U.S. economy going to do better in the next decade or are we going to continue this uncertainty and volatility (sudden unexpected changes)? Explain.

In 20222023, there were five outputs (goods and service) in one country. The table below shows you the quantity and price of each output. Using the information given, finish the questions as following. To get full credit, you need to show stepbystep solutions. Goods (services) produced Refrigerators Smartphones Pickup trucks Higher education Video

Consider Willie Starks consumption of steak and bourbon. When he made 120,000 a year he had 10 steaks and 200 bourbons. Now we make 180,000 and has 9 steaks and 300 bourbons. Find the income elasticities () of steak and bourbon. What do these values tell us

A forestry firm fells trees on provinciallyowned land. The trees, once felled, are sold to a sawmill that transforms the trunks into planks and posts. The sawmill bought capital goods from a heavy equipment manufacturer. The planks and posts are sold to a DIY (DIY Do It Yourself) store which then sells them to consumers. Using the information in

Suppose an individual facing the following problem The utility function takes the form max C1,C2,81 U Eu(c) Bu(c), u(c) 1 ac e a The individual only works and gets income in the second period. The budget constraint is given by C s 0, C y (1r)s. a. Find the optimal c, c. b. Suppose there is uncertainty regarding the interest rate, which can

Use the following basket of goods for years 2006, 2007, and 2008 Good and unit Quantity Price In 2006 Price In 2007 Price in 2008 Coffee, pounds 3 10.25 10.30 11.25 Gasoline, gallons 30 3.50 3.85 3.30 Cereal, boxes 5 4.25 4.25 4.50 Electricity, kwh 0.11 0.11 0.10 Milk, quarts 1.75 1.80 1.75 200 12 The basket was adjusted in 2007 to reduce gasoline

You set aside $1000 in cash to book an international vacation. The $1000 you saved illustrates money's function as a _______. The vacation package is listed at $1000. The listed price demonstrates money's function as a _____. You hand over the $1000 to book your trip. This action showcases money's function as a ______. a) store of value, medium of

The two methods of measuring the value of GDP are the a. Expenditures approach and income approach. O b. Direct and indirect approaches. c. Domestic and foreign approaches. d. Household and business approaches. e. Input and output approaches.

A change in demand means that there has been a a. Movement along a given demand curve. O b. Change in sellers input prices. O c. Corresponding change in supply. O d. Permanent disequilibrium condition created in the market. O e. Shift to the right or left of a given demand curve.

Which of the following excluded from GDP a. Gasoline purchased for the family car. O b. Services performed by municipal law enforcement officials. O c. Goods and services sold to foreigners. d. Steel sold to a refrigerator manufactures. O e. Purchase of cloth by a homemaker to make draperies for the bedroom.

If autonomous investment increases by 100 billion, equilibrium real GDP demanded will O increase by 100 billion O not change O increase by (100 billion)MPC O increase by 100 billion x MPC increase by 100 billionMPS

To deflate one must O a. Multiply the price ratio by 100. O b. Subtract constant dollar values from current values. O c. Divide current dollar values by a price index. O d. Add the price index I the current year to the price index in the base year. O e. Find the difference between the values of two different sets of goods in a given year.

After the release of the iPhone, consumers began to prefer smartphones over traditional cell phones. Google also released its Android operating system as an open source (meaning free of licensing fees) platform for smartphone manufacturers to use in their devices. Determine what happens to equilibrium price and quantity in the market for

Why did Elon Musk, one of the original investors of Open AI and the CEO of Tesla (which is an AI-intensive manufactory) argue that A.I. tools present "profound risks to society and humanity."?

Use this graph to answer question 1. price 10 8 Co ST 2 0 quantity 3 O 5 BRISATAM d 1. If there are just two consumers in a market, each with the demand curve, D, shown in the above figure, quantity demanded in the market is 6 units at a price of and 2 units at a price of

If the production function is AK and the savings rate is constant at rate s, and the rates of depreciation and population growth are 8 and n respectively, what would the growth rate of the economy be

What would be the macroeconomic consequences of increasing the savings rate in economy? Explain using the model and intuitively.

What would be the consequences of an increase in fertility in economy? Are these consequences good or bad?

How are human and physical capital different from one another in the way they evolve from period to period?

In the AD-AS macro model the Aggregate Supply (AS) curve is represented graphically as a curve with a varying degree of slope. In terms of what we can learn from the concept would it also be satisfactory to show AS as a straight line?

According to the following Figure, please answer a, b and c Price CH T b a 1 U S D Quantity,a) In the graph, total consumer surplus is shown by area 1. acdf. 2 bede. 3. bce. 4. abe. b) In the graph, total producer surplus is shown by area 1. acdf. 2. ace. 3. bce. 4. abe.,c)In the graph, total surplus is shown by area 1. acdf. 2. ace. 3. bce. 4.

Discuss the policy of rentcontrolled housing in the United States what was the original intention on such price intervention Briefly debate about the benefits and disadvantages of such a policy (as a price ceiling) for a market economy. What cities in the country still follow that kind of policy Make sure to correctly cite your references and

According to the following Figure, please answer P 16 12 8 5 2 . . S D 20 40 60 According to this graph, how much is the consumer surplus when price is set at equilibrium (P 8) (use the area of triangle Base x Height x 2) According to this graph, how much is the producer surplus when price is equal to its equilibrium level (P8) (use the area of

Briefly describe some of the factors of labor productivity that are similar for some countries but different in others

Write one paragraph discussing why the economy has a natural unemployment rate and how altering that natural state can cause economic issues. Provide an example of what can happen to inflation and, ultimately, the lifestyle of people when unemployment is unstable.

Recent developments in a particular marketing district resulted in the determination of three areas X, Y and Z. The location of these areas and the number of customers expected in each per month are as follows Y 30.000 6 km. X 25.000 10 km. 8 km. Z 45.000 Two competing companies, D and E, are planning to establish operating branches in the

Consider the following ARMA(1,1) process 1 Xt xt1t1 Et 4 Et iid (0,0) (a) Is the process invertible Justify your answer. (b) Is the process stationary Justify your answer.

Refer to the Figure 4-4. If the price is $10, what would happen? a. There would be a shortage of 600 and the price would rise. b. There would be a shortage of 200 and the price would rise. c. There would be a surplus of 600 and the price would fall. d. There would be a surplus of 200 and the price would fall.

Price 30 25 20 15 10 5 D 100 200 300 400 500 600 700 800 Quantity 5

A high unemployment rate in any economy is a symptom of dysfunctionality in the economy. People need income to be able to consume, and consumption leads to production and production leads to a higher demand for labor (employment), so unemployment is a crucial macroeconomic issue that confronts all modern economies. Discuss?

a. b. c. d. Use the graph below to answer the questions that follow P 100 7 1.CMina ZNJHI 2.5 Minal Q 0 What is the equilibrium price and quantity When the price rises to 100, what happens to Qs and Qd Why As a result of the increase in price, what situation is created Explain. Is there a new equilibrium level when the price is 1007 Explain.

Use the graph below to answer the questions that follow. 5.30 5.60 4.50 H A B B sh .S 0 8 ADR a. A tax has been placed on the consumer and the demand curve shifts to the left. What three negative effects does this have on the market Explain. b. How has consumer and producer surplus changed as a result of the tax on the consumer Explain. c. What

Why are government transfer payments not included in the calculation of GDP,Would a lower interest rate for borrowers increase GDP or decrease GDP Use an example to explain your reasoning.

In what product should Japan specialize In what product should Malaysia specialize

If a countrys economic data shows that private savings equal 400 million, government spending equals 600 million, taxes equal 350, and the trade surplus equals 250 million, then what does investment equal

Discuss the economic logic of the following image

Money supply Demand for money Price level Rate of inflation Nominal interest rate

O135 450 315,What number replaces the X in the Keynesian table below The MPC is 0.7 Change in I, C, and GDP for 2 rounds Round 1 Round 2 Total Change Change CChange GDP 450 0 0 X 450

Consider the SolowSwan growth model, with a savings rate, s, a depreciation rate,8, and a population growth rate, n. The production function is given by Y AK BK2 H4L4 where A and B are positive constants. Note that this production is a mixture of Romers AK model and the neoclassical CobbDouglas production function.,(a) Express output per person,

Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries Check all that apply. O Providing tax breaks and patents for firms that pursue research and development in health and sciences O Increasing taxes on income from savings Protecting property rights and enforcing contracts O

In less developed countries, what does the term brain drain refer to Lower productivity due to a malnourished workforce O The emigration of highly skilled workers to rich countries Rapid population growth that increases the burden on the educational system Rapid population growth that lowers the stock of capital per worker

Suppose you are considering putting your savings in an investment fund. Scenario A projects stable prices, and therefore, low returns. Scenario B involves high inflation and, consequently, high returns. In both cases, the capital earnings tax rate is 22.0.,Scenario Inflation A B 2.5 15 Nominal rate of return 6.00 18.50,Calculate the nominal and

Assume a Solow economy with laboraugmenting technological progress, CobbDouglas production function that is constant returns to scale in capital and labor (y Ka (EL)a), and the share of capital costs in total income that equals 50. Population growth equals 2, growth in the efficiency of labor equals 2, savings rate equals 30, and the depreciation

Perform an industry analysis to determine the nature of competition among dairy firms in the industry, the power of both suppliers and buyers, the availability of substitutes, and whether there are any threats of new entrants into the industry.

You are lending 100 to your roommate for a year. You both agree that you should earn a 5 rate of return for the year a) If you make the loan in the base year, and you expect the inflation rate to be 10 over the year, what nominal rate of interest should you charge your roommate b) If you charge the interest rate you determined in part a., but

Calculating a Simple Price Index. The table below lists the price of a basket of goods for 2016 and 2017. Good Popcorn Coke Movie ticket Basket Price Index Quantity 1 2 2 Unit price 6 5 12 2016 Total Cost 6 10 24 Unit price 8 5 13 2017 Total Cost 8 10 26,Calculate the price of this basket in the base year, 2016 and the subsequent year 2017. What

Suppose that the residents of Greenland play golf incessantly. In fact, golf is the only thing that they spend their money on. They buy golf balls, clubs and tees. In 2016, they bought 1,000 golf balls for 2.00 each, 100 clubs for 50.00 each, and 500 tees for 0.10 each. In 2017, they bought 1.000 golf balls for 2.50 each, 100 clubs for 75.00 each,

Suppose the central bank now employs an MP curve given by r Compared to the initial MP curve r 1 , does this represent a loosening or tightening of monetary policy Explain why, using 3 as a reference point.

Policy makers often turn to fiscal policy to counter the business cycle because fiscal policy is nimble and because it is equally effective against both inflation and recession. Discuss?

A ping pong ball of 2.7 gram of 38mm diameter floats in the air jet blown by a hair dryer. Estimate the air flow speed required to keep the ping pong ball afloat. Refer to the following drag coefficient versus Reynold number. 688 CD 200 100 50 20 10 5 2 1 0.5 Strokes drag Cp24Re Sphere 0.2 0.1 0.05 0.02 0.1 0.2 0.5 12 5 10 20 50 Infinite plates U

In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in: A. increased cash B. decreased cash C. increased liabilities D. increased equity

It is required to produce a rod of 22 mm diameter and 200 mm length from original one of 40 mm diameter using extrusion process, where the extrusion ratio is 1.6 and the material mechanical behavior is a30004 MPa, if the yield occurred at 0.2 strain and the fracture occurred at 0.7 strain, where, (a0.8, b 1.3) Calculate 1 Number of stages. 2 The

Discuss the 5 Economic variables (C, 1, G NX)

Discuss?

Demand for holiday rental homes in some of the most popular regions has dried up in the past three months as households slash their discretionary spending to cope with the pressure of rising interest rates and cost of living, owners say.

I think the latest two rounds of interest rate rises have got people worried, so they may have decided to save a bit more money rather than spending it just in case the interest rates keep going up," Elaborate this statement?

Consider social media and what part of the world population has access to it and who uses it the most.

How might an advertiser use the information of social media usage to use price discrimination to maximize profits

Consider a large open domestic economy that is a net borrower. (i) Draw a diagram showing this situation (Your answer should include two graphs, one for the domestic economy and one for the foreign economy) (Note: Draw the two graphs side by side and clearly indicate the world interest rate as a single line going through both graphs) (ii) What

Using the graph, shift the shortrun aggregate supply (AS) curve or the aggregate demand (AD) curve to show the shortrun impact of the increase in government spending.,PRICE LEVEL 240 200 160 120 80 40 0 0 200 400 600 800 OUTPUT (Billions of dollars) AS AD 1000 1200 AD 0 AS ()

Which of the following statements best explains the relationship between per capita income and life satisfaction? A. As per capita income decreases, life satisfaction decreases. B. As per capita income increases, life satisfaction increases at a constant rate. C. As per capita income increases, life satisfaction increases at a decreasing rate. D.

Which of the following statements best explains the relationship between per capita income and the HDI? A. As per capita income increases, development increases at an increasing rate. B. As per capita income increases, development increases at a constant rate. C. As per capita income increases, development increases at a decreasing rate. D. As per

Using the functions of money along with the concept of liquidity and the forms of measuring money, consider the following items and order them from most money-like to least money-like . (number 1 to 10) -A widely accepted, major credit card (such as a Visa, Mastercard, American Express, or Discover Card.) -One Bitcoin -Food Stamps (SNAP) -Grocery

Find the equilibrium by equating the Demand to the Supply. D=S 100 - 6p = 28 + 3p 72 = 9p 8 = p which is the equilibrium price. Plug that into either equation to find the equilibrium quantity draw a supply and demand model (ILLUSTRATION) where I have an "X" representing both supply and demand

A related criticism on GDP is that it is not a good measure of human development, which the United Nations describes as the "expansion of people's freedoms to live long, healthy and creative lives." Elaborate this statement?

Suppose you are planning tuition funds for two children. The first child will need to make their first tuition payment in 10 years from today, and the second child will need to make their first tuition payment in 14 years from today. Each child will need four annual tuition payments. Assume average tuition now is $22,000 per year and will increase

One shortcoming of GDP as a measure of standard of living is that it might not accurately reflect people's life satisfaction or happiness. Discuss?

pick ONE firm or industry and explain how it is affected by the COVID POSITIVELY. You are encouraged to use your own experience. If you use data, please include your data source.

table below, which shows the number of shells and fish that workers in the hypothetical countries of Bismarck and Lusitania can produce in a day. Worker in Bismarck Worker in Lusitania Shells 3 Fish 1 2 4,Which statement is true about trade between Bismarck and Lusitania A. The government of Bismarck has an incentive to place a high tariff on

How does immigration impacts the U.S. markets? support with a personal experience

how did the recent events impact productive resources, employment, and overall economic efficency use ppf and circular flow diagram to illustrate the economic effect of the events. suport with a personal experience. or additional evidence from this sources mises institute, cato institute

Suppose that an economy is overheating as it is producing more than its sustainable amount of output. Explain what the monetary authority can do to help bring output back to the full-employment level.

Much of the stock of capital in the economies of Japan and Germany was destroyed during World War II. 1.) Use the point drawing tool to plot and label a point on the graph that indicates the position of Japan or Germany (label this J or G) 2.) Use the point drawing tool to plot and label a point that indicates the position of the U.S. immediately

compare microeconomics and macroeconomics with some good examples.

COVID 19 expected to bring up unemployment what does that mean for Canada?

Student loan debt in the United States is the second largest source of debt after mortgages. Some people believe that college education in the United States ought to be "free" and many also want to "cancel" existing student loan debt. Others see such proposals as unfair, counterproductive, and unaffordable. Please answer the following questions

List the 5 highest-paying college majors and the 5 lowest-paying. Why do you think the highest-paying majors pay so much more?

Based on the table, what is the MPC at each level of GDP Based on the table, what is the MPS at each level of GDP,Level of Output Income (GDPDI) Consumption Saving 240 4 260 0 280 300 360 380 276 292 308 324 340 372 12 16 24 28

Its all bad news on the economic front. The government reported yesterday that the U.S. economy suffered its biggest decline in 26 years in the last quarter of 2008. According to the Department of Commerce, gross domestic product (GDP) fell at an annual rate of 3.8 percentthe largest drop since the first quarter of 1982. Spending was down across

Does an active fiscal policy help or hinder long run growth in the economy There are arguments that can be used to support both sides in this debate. How do they compare

List reasons why an active fiscal policy helps the long run growth of the economy.

Should the US use fiscal policy to encourage long run growth of the economy?

Consider the following planning economy problem such that and In addition, max Et Ct,kt1 t0 Bt 1o qItyti Yt 2k 2 kt1 It (18) kt. In z pln z1 7. Above c is aggregate consumption k is the aggregate capital stock E, is the ex pectation operator conditional on the information available up and through period t inclusive 3 (0, 1) is the subjective