QUESTION 1 Which of the following statements is/ are correct i. At the maximum point of the total product curve, average product is equal to zero. ii. Total product start by increasing at an increasing rate and then increase at a decreasing rate as the amount of the variable factor is changed in the short run. iii. When marginal product is at its maximum point, marginal cost is at its minimum value. a) Only ii and iii. b) Only ii. c) Only i and iii. d) Only i, ii, iii and iv

Q: A senator wants to raise tax revenue and make workers better off. A staff member proposes raising…

A: The business pays its employees a proper remuneration for their efforts. Cumulatively, the business…

Q: 17. (Figure: Laffer Curve 3) A supply-side economist is advocating reducing income tax rates. She is…

A: The Laffer curve is a theoretical relationship between tax rates and tax revenue. It is named after…

Q: 1) You are given that a firm's true marginal cost curve is lower than the average/expected marginal…

A: In the cap and trade system, govt issues a limited number of permits to the firms equal to the…

Q: The city engineer and economic development directors are evaluating two sites for construction of a…

A: In financial economics, the benefit- cost ratio (BCR) is a measure that is measured in monetary…

Q: The following graph shows the market for euros, which is initially in equilibrium. Suppose an…

A: With the economic downturn in the US economy, there is a drop in American income causing imports…

Q: Jane invests R8,000 at an annual interest rate of 6%, continuously compounded annually. How much…

A: In the continuous compounding there will be an assumption that interest is compounded and reinvested…

Q: Discuss an expansionary fiscal policy on the keynesian cross and illustrate it.

A: Fiscal policy refers to the use of government spending and taxation to influence the economy. It is…

Q: A single-price monopolist is currently producing at an output level where marginal revenue is $14,…

A: The marginal revenue is stated to be $14The marginal cost is $16The average variable cost is $13 The…

Q: coffee , while Lamponia has a comparative advantage in the Candonia has a comparative advantage in…

A: The PPF is also referred to as the production possibility curve (PPC). It is a key economic concept…

Q: Amy Bob and Carry have the following reservation prices for goods X and Y Good X Good Y Amy 120 5…

A: Find the optimal prices for goods X and Y.Calculate the maximum profit from pure bundling.Evaluate…

Q: 04. If Y=C+I and C=cY, if I increases from I to I, how much will Y increase by? a. b. O C. Od. 1,-10…

A: Aggregate income is the sum of consumption, investment, government spending and net exports in an…

Q: The following table shows data for the economy before the decrease in saving. Suppose that the…

A: Total expenditure is the sum of consumption (C), investment (I), government purchases (G) and net…

Q: The following table shows the weekly demand and supply in the market for ice cream in New York City.…

A: A  demand curve shows the relationship between the price of a good and the services and the demand…

Q: 10 0 10 20 30 Puzza West Lothian 20 1319 10 O 10 20 Pizza East Lothian 30 In the accompanying…

A: The PPF is also referred to as the production possibility curve (PPC). The production possibilities…

Q: b) Redraw the graph, but this time shade in the areas that represent consumer surplus, producer…

A: The situation describes a firm that has patented technology in manufacturing 3D food printers. There…

Q: PRICE LEVEL R LRAS O O Q AD: QUANTITY OF OUTPUT P in the short run and the long run. R in the short…

A: The economic relationship between the overall demand and supply is represented through the AD-AS…

Q: 11. Which of the following is not true regarding Figure 11.1? Output (units per day) 50 48 9 S 1 12…

A: A production function is a mathematical relationship that represents the maximum amount of output…

Q: PROBLEM (4) Firm A and Firm B with identical total costs TCA (QA) = and TCB (QB) = are producing…

A: There are 2 firms- Firm A and Firm B.Total CostsDemand functionsThe firms are producing related…

Q: Consider the following Indirect Utility Function U*PM derived from Linear Expenditure System (LES):…

A: The indirect utility function is a concept in economics that represents the maximum level of utility…

Q: FIGURE 12-18 28 24 18 p(h): Substitution 6 12 Distance to center p(h): No substitution

A: IntroductionThe housing price curve illustrates the correlation between housing prices and the…

Q: Consider the following model. Expenditure is given by: E=C+I+G. The consumption function is…

A: The expenditure function is given asThe consumption function is given as The Investment is 500, the…

Q: The “Free the Beer” case is currently before the Supreme Court of Canada. In 2012 Gerard Comeau, 64,…

A: The "Free the Beer" Story:There's a case in Canada called "Free the Beer." A guy named Gerard Comeau…

Q: Suppose there are two types of passengers: business travelers (B) and vacationers (V). The demands…

A: Price discrimination is a sales strategy of selling the same product or service to different…

Q: Suppose a person starts out with $5000, PA-$5, and PB-$2. The Price Elasticity of Demand (ED) is 2.…

A: Income (m) = $5000.The initial price of good A, (PA) = $5, and the price of good B, (PB) = $2. The…

Q: Provide a table with the nominal GDP for your assigned the Dominican Republic for 2020 and 2021.…

A: For a particular period, the final value of goods and services produced in an economy is known as…

Q: Pretend that the country is in a normal economic climate. Suppose that the Federal Reserve,…

A: The Federal Reserve has announced to initiate the purchase of $2 million worth of treasury and other…

Q: Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium…

A: Monopolistic Competition is a market structure where there are a large number of buyers and sellers;…

Q: Categorize each of the following funding schemes as examples of the benefits principle or the…

A: This can be defined as the tool that is used by the individual, business, or any other organisation…

Q: Bluefin tuna is a fish that is in high demand from consumers. Overfishing of this species,…

A: The externalities refer to side effects of economic activities that are borne by the third parties.…

Q: Explain briefly what you mean by the following terms: a. Variable cost b. Market Power

A: The objective of the question is to provide a brief explanation of two key economic terms: Variable…

Q: 2. The Administrative Lag in discretionary macroeconomic policy is     (a) The lag between the…

A: The objective of the question is to understand the concept of 'Administrative Lag' in the context of…

Q: Suppose that an monopolistically competitive restaurant is currently serving 230 meals per day (the…

A: A monopolistically competitive market is a market structure that has a few qualities of both perfect…

Q: In the IS curve, consumption, government expenditure, exports, and imports are a function of O…

A: IS curve is an indicator of the relationship between the real interest rate and aggregate output…

Q: National Income 100 200 300 400 500 600 O 104 324 374 This is a table for Keynesian cross diagram.…

A: Consumption refers to the use, utilization, or expenditure of goods and services by individuals,…

Q: Imagine a firm with a marginal abatement cost ( MAC) function equal to: MAC = 70 - 10E. The…

A: Marginal abatement costs that are being used for decreasing an additional pollution unit. The policy…

Q: The newspaper article from Barbados below where Interest rate increases by central banks constitute…

A: The objective of the question is to illustrate the impact of an increase in interest rates, a…

Q: In Orlando, 135 people are willing to spend an hour working as yoga instructors for an hourly wage…

A: The amount of labour supplied at a specific wage rate is displayed on the labour supply curve. It is…

Q: Suppose a market is served by two firms (a duopoly) The market demand function given by P = 1200 -…

A: Profit is the income earned after all deductions that is costs incurred from the total revenue.

Q: Suppose there are only two consumers in the market for a public good. The figure to the right shows…

A: Public goods are commodities or services that benefit all members of society. Public goods are non…

Q: includes the wages paid to workers, the cost of any benefits the worker receives, and other expenses…

A: When a manufacturer sets the sales price of a product, the firm takes into account the costs of…

Q: PROBLEM (5) In a dominant firm market with demand Q = 30 − p, the dominant firm has MC(Q) = 2Q (that…

A: The Market Demand is provided as follows: The functions of the dominant firm are provided as…

Q: Suppose there were an increase in Government spending of $100 billion. The MPC is 75 andthe tax rate…

A: Crowding out is a concept in economics where the government of a country tends to increase their…

Q: How did you calculate the solution of (i)?

A: The data on nominal GDP of Barbados from 2020 to 2021 isYearNominal GDP (in $)Change in GDP (in…

Q: The U.S. economy is strong right now. why?

A: Introduction: We are examining the current state of the U.S. economy, which is reportedly…

Q: Consider two labor markets, an eastern state and a western state, that enact different laws…

A: Considering the fact that labour has the ability to disrupt the economy's operation, the labour…

Q: When the price of a 128GB micro SD card falls from 79 to 41, the quantity demanded of 128GB micro SD…

A: The elasticity of demand:Thе еlasticity of dеmand is calculatеd as thе proportional changе in…

Q: Two firms must simultaneously decide whether to enter a market. The payoffs resulting from their…

A: The NE in game theory reflects the situation under which both players are playing their best…

Q: A firm in a competitive market has the following cost structure: Output 0 1 2 3 4 5 Total Cost $5…

A: From the above table given in the question, we can calculate the fixed cost and the variable cost…

Q: Suppose that the marginal cost of laundry service is $1 per item, and the price - elasticity…

A: Marginal cost is $1.i.e., MC = 1The price-elasticity of demand is 4.i.e., Ed = 4

Q: 67. During the financial crisis of 2008, the Federal Reserve took extreme policy measures. Which of…

A: The best characterization of the Federal Reserve's policy during the financial crisis of 2008 is:b.…