If the budget line rotates from blue to red. Consumption Next Year B Consumption Today The interest rate has increased. The interest rate has decreased. The interest rate has not changed. If the person borrowed a $1 today they would owe more in the future. O If the person borrowed a $1 today they would owe less in the future. If the person saved a $1 today they would have more money in the future on the red budget line compared to the blue budget line. If the person saved a $1 today they would have less money in the future on the red budget line compared to the blue budget line.
Q: 3. A perfectly competitive individual firm operates in a constant cost industry and produces a level...
A: Answer: (c). ATC=TCqATC=12×q2+5,000qATC=12q+5,000qATC=q2+5,000q Graphical presentation of ATC and MC...
Q: Your mom wants to invest in a project that costs $10,000 today. twill produce a cashflow of $12,000 ...
A: Given Initial investment =$10,000 Cashflow at the end of the year =$12,000 Rate of interest r=10%
Q: Moving from static efficiency state with an unlimited resource supply to a dynamic efficiency state ...
A: Static Efficiency State is defined as a state where the efficiency depends on the most efficient com...
Q: Why is it desirable for a country to have a large GDP?
A: In economics, the gross domestic product is an economic measurement to compute the national income o...
Q: 2.) "When deciding how many toppings to get on my pizza, I chose the number of toppings so that the ...
A: "Correct answer is option d) i.e. making decisions on the margin."
Q: You are a manager of an advertising company. The company is running short of funds, so you decide to...
A:
Q: You want to save the down payment required to purchase a vacation home at the end of five years. If ...
A: Given: Down payment=$25000 Interest rate=5% To find: Amount to be set aside at the end of each year ...
Q: Which of the following statements is true? According to Okun's law: Select one or more: a. unemploym...
A: In general, Okun's law states that as unemployment decreases, a country's productivity rises.
Q: Private Good. In the table below are five individual demand schedules for ECONOBREAD, which is produ...
A:
Q: YOur answers are S ng Time: 51 minutes, 21 seconds. an Completion Status: 6. 7 9. 10 Moving to anoth...
A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in pric...
Q: Ceteris Paribus means
A: To find : What is ceteris paribus
Q: The toble shown displays the marginal tax rates that correspond to each taxable income bracket for a...
A: First, let us calculate total taxes to be paid by both G and D. G's total taxes: First $10,000 @ 10%...
Q: The consumer gets positive benefits from consuming bread (B) and cake (K). Consumer utility is as fo...
A: MRS = MUBMUK = 20*2 B K20 B2=2KB Price ratio: pBpK = 200400 = 12 Budget Constraint: pB*B + pK *K = ...
Q: Nico has a 20-year-old oil-fired hot air furnace in his house. He is considering replacing it with a...
A: Answers Net Investment Cost of new gas furnace $ 4,500 Add: Installation Cos...
Q: Your grandparents decide they would like to put aside money to help support each of their grandchild...
A: Grandparents want to give $18000 to their grandchild on the 18th birthday of the grandchild. That me...
Q: Instructions: Fill - up the vacant table. Given is as follows: Week Sales ( $1,000) Four-week Moving...
A: Introduction Sales of 9 week has given. 4 moving average has calculated as = add the sales of previo...
Q: Question 39 Consider the table below. The addition of worker number when the firm first experiences ...
A: Change in the total product when one additional unit of input is used, is called the marginal produc...
Q: 25.)A binding price ceiling is imposed in the market. the equilibrium price and creates a a.) Above,...
A: The ceiling which depicts the maximum amount at which products or services could be sold in the mark...
Q: Drawing on John Rawls’s concept of the veil of ignorance, develop an ethical code that will (a) guid...
A:
Q: An online clothing retailer examined their transactional database to see if total yearly Purchases (...
A: As per the question, the least square regression model is given as: Purchase^=-33.8+0.019(income) "W...
Q: Price £/unit E B. 'D3 D1 D2 Quantity Figure 4 Supply and demand curves for a normal good Figure 4 sh...
A: Macroeconomics and microeconomics are the two important branches of economics and both are important...
Q: Spain's current real GDP (YO) is €326 billion, and grows at a constant rate of 1.1%. Portugal's curr...
A: Given, Current real GDP of Spain= 326 billion GDP growth rate of Spain= 1.1% Cu...
Q: 6. Which of the following input factor takes risk, innovates and coordinates
A: To find : Which factor takes risk, innovates and co ordinates.
Q: what is the long run effects of a permanent increase in aggregate real money demand on exchange rate...
A: The money demand curve shows the negative relationship between the interest rate and output. It mean...
Q: . Which of the following are determinants of aggregate demand? Choose all that apply. A. a spike in ...
A: Answer: Determinants of aggregate demand: the determinants of aggregate demand refer to the factors ...
Q: Suppose that many varieties of lettuce have been damaged in a particular season by disease. Only gre...
A: Answer: We’ll answer the first question since the exact one wasn’t specified. Please submit a new qu...
Q: RUE OR FALSE 1. The volume of our money is being regulated by the government and subject to the app...
A: 1. False: The given statement is false because the money supply in the economy is regulated by the c...
Q: Given the production function q = 1.37LK, what is the marginal product of labor? A) 1.37 B) 0 C) 1.3...
A: Marginal product of labor is the additional output produced by employing an additional worker
Q: The primary purpose of the regional economic bloc originally created by Brazil, Argentina, Paraguay,...
A: This regional bloc is called Mercosur. Option C
Q: Who pays the federal unemployment tax and the state unemployment tax
A: The State Unemployment Tax Act, or SUTA, refers to state-level taxes; however, the Federal Unemploym...
Q: Suppose the inflation rate Tt rises and the central bank raises the nominal interest rate. This resu...
A: When talking about AE curve and AD curve, they are the tools used by Keynesian economists to explain...
Q: In a gambling game, Player A and Player B both have a $1 and a $5 bill. Each player selects one of t...
A: Dear Student as you have posted multiple sub-parts in a question, but according to our policies and ...
Q: 54.60 40.00 48.60 40.20 43.80 37.80 36.60 36.60 37.80 40.20 20.00 22.20 1.40 0.00 10 11 12 13 14 15 ...
A: A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price...
Q: 5.) In the flow of funds model, households make cash payments in the cash payments in the market and...
A: Note:- Since we can only answer one question at a time, we'll answer first one. Please repost the qu...
Q: By the conditions of a will, the sum of P 250,000.00 is left to a girl to be held in trust by her gu...
A: PV(present value) is 2,50,000 FV(future value) is 5,00,000 R= 0.07/12 = 0.0058 (Adjusted)
Q: Round your answers to two digits after the decimal(the nearest 1/100th). The following question cons...
A: Firm is operating under a perfectly competitive market therefore , P = MC & P = 35 (Given ...
Q: ou own a printing firm. Two of your senior managers provide you with advice. The first manager state...
A: Consider the below points: * Profit maximizing level MR = MC.* Profit = Total Revenu - Total Cost
Q: Consider the firm whose MC, AC, AVC, AFC functions are shown in the following graph. (The following ...
A: The expenses that are being incurred for conducting operations of the business are known as costs. T...
Q: Given that fixed cost =230 and variable cost=D12Q ; the total cost of producing 30 units of output i...
A: Let's First understand what is total cost. Total cost is the sum of fixed cost and variable cost inc...
Q: Output Variable Total AVC AFC ATC MC (bоxes) Cost Cost $0 $10 1 $20 $15 3 $69 $3.33 $23 4 $2.50 $27 ...
A: According to the table given in the question, total cost at 0 units of output is $10 which means fix...
Q: 6. We have the production function, Q= f( K,L). Factor prices are r and w respectively and the produ...
A: Here, we have Production function, Q=f(K,L) Rental rate of a unit of capital is given by r which is ...
Q: The Slutsky matrix below belongs to a consumer with a regular utility function of three goods, with ...
A: As we know that Slutsky matrix is symmetric matrix. Therefore, By solving the metrics we can find ou...
Q: (b) To collect data for a study an individual chooses to question people coming out of a mall direct...
A: Primary data is the data which is collected through first hand information.
Q: Question 1 Consider a consumer with the following quasi-linear utility function U = x² +5y Assume th...
A: The total effects of the price change can be decomposed into a Substitution effect and Income effect...
Q: (a) Calculate nominal GDP in each year. (b) Calculate real GDP in each year, and the percentage inc...
A:
Q: Suppose the long run potential output is given by the production function Yp = A*F(N,K) where A is t...
A: Production Function: Yp = A*F(N,K) there is no effect of interest rate in the long-run production fu...
Q: Consider the following 2 period model, defining outcomes for people who choose to go or not go to sc...
A: Since you have posted multiple questions, we will answer the first three parts for you. If you want ...
Q: What are the four stages of the business cycle? Describe each stage.
A: Business cycle refers to ups and downs of the economic activityies.
Q: If steak is a normal good, when incomes rise, the equilibrium price will _____, and the equilibrium ...
A: A normal good is that good whose demand increases when there is increase in the income of the consum...
Q: given the following calculate the Household Consumption Expenditure GDP at market prices 1,669.4 ...
A: Household consumption expenditure represent the expenses incur by household on consumption of goods ...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Explain how does adecrease in the current income y affect the consumer’s consumption-saving decision. In particular,explain: 1) How will current consumption c, future consumption c', and savings s change; 2) Arethere any substitution effect or income effect. Make sure you draw two figures, one for the borrowersand one for the lenders.Explain how does adecrease in the current income y affect the consumer’s consumption-saving decision. In particular,explain: 1) How will current consumption c, future consumption c′, and savings s change; 2) Arethere any substitution effect or income effect. Make sure you draw two figures, one for the borrowersand one for the lendersSuppose you expect to earn $10 this year and $10 next year. Each dollar you earn this year can be either spent, or saved at an interest rate of 10%. If you want to spend more than $10 this year, you can borrow money at 10% interest and repay it next year. Next year, you plan to pay oyour debts (if any), then spend all your earnings and all your savings (if any). Draw your budget line between “dollars spent this year" and “dollars spent next year". Suppose the government imposes a 50% income tax on all your earnings this year and next year (not including your interest earnings). Draw your new budget line. Suppose the government imposes a 50% sales tax on everything you buy this year and next year. Draw your new budget line. Suppose the government imposes a 50% income tax on all your earnings this year and next year, including your interest earnings. Draw your new budget line. True or False: If interest earnings are not subject to income tax, then an income tax and a sales tax…
- Jason spends his entire budget on coffee and doughnuts. You have the following data on his choices: Table 1: Jason's consumption choice and budget Price / cup of coffee Price / doughnut cups purchased doughnuts purchased Income February 2 1 4 22 March 5/2 3/4 10 8 31 April 3 1/2 8 14 31 Assume Jason 's preferences are monotone, the same over the three months, and that he has no way to save or borrow across periods. Are Jason's choices consistent with utility maximization?1. Complete the following table and answer the questions below: Units consumed Total utility Marginal utility 1 10 10 2 8. 25 4 30 5 6. 34 2. Columns 1 through 4 in the table below show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are P18, 6, 4, and 24, respectively, and that Ricardo has an income of 106. Column 1 Column 2 Column 3 Column 4 Column 5 Unit Unit Unit Unit No. of MU MU MU MU P saved MU of A of B of C of D || || || || | 1 72 1 24 1 15 1 36 1 2 54 2 15 12 2 30 2 3 45 3 12 8 3 24 3 36 4 18 2 27 5 7 5 13 5 1 18 6. 7 6. 1/2 7 15 7 7 3.5 7 4 7 1/4 8 12 8. 1 8 2 8. 1/8 a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? b. How many pesos will Ricardo choose to save?Edna is living in a retirement home where home where most of her needs are taken care of, but she has some discretionary spending. Based on the basket of goods in Table 22.5, by what percentage does Ednas cost of living increase between time 1 and time 2
- Go to this website (http://www.measuringworth.com/ppowerus/) for the Purchasing Power Calculator at measuringWorth.com. How much money would it take today to purchase what one dollar would have bought in the year of your birth?Jayden's grandmother gives him $240$240 each month, which he spends on pizzas and burgers. Usually, he buys 44 pizzas for $180$180 and spends the remaining $60$60 on 44 burgers. However, the price of 11 pizza has increased by $5$5; the price of a burger has not changed. Now, Jayden will buy only 33 pizzas per month.Calculate how many burgers Jayden can afford to buy if he still wants to spend all the money. If necessary, round any intermediate calculations to two decimal places. For your final answer, write the exact value; do not round.Garfield enjoys pizzas and hanging out (leisure). He sleeps 8 hours per day. Of the remaining16 hours, for each hour he chooses to work he gets paid 2 pizzas. Garfield must pay 6 pizzas intaxes but receives dividends equivalent to 6 pizzas.1. Draw Garfield’s budget constraint (put consumption on the vertical axis and leisure of thehorizontal). Make sure to show the vertical and horizontal intercepts as well as the slope.b. Now suppose that Garfield chooses to work 10 hours per day. Find how many hoursof leisure and how many pizzas he will consume.c. Using your answer from b, show Garfield’s optimal point on the budget line and drawthe indifference curve passing from that point.4. Suppose that Garfield’s wage falls to 1 pizza per hour. Draw Garfield’s new budgetconstraint. Make sure to show the value of any intercept that has changed.5. Suppose that in response, Garfield decides to work for 6 hours per day. How much leisurewill he take, and how much pizza will he consume?6. Use an…
- Garfield enjoys pizzas and hanging out (leisure). He sleeps 8 hours per day. Of the remaining16 hours, for each hour he chooses to work he gets paid 2 pizzas. Garfield must pay 6 pizzas intaxes but receives dividends equivalent to 6 pizzas.1. Draw Garfield’s budget constraint (put consumption on the vertical axis and leisure of thehorizontal). Make sure to show the vertical and horizontal intercepts as well as the slope.b. Now suppose that Garfield chooses to work 10 hours per day. Find how many hoursof leisure and how many pizzas he will consume.c. Using your answer from b, show Garfield’s optimal point on the budget line and drawthe indifference curve passing from that point.4. Suppose that Garfield’s wage falls to 1 pizza per hour. Draw Garfield’s new budgetconstraint. Make sure to show the value of any intercept that has changed.5. Suppose that in response, Garfield decides to work for 6 hours per day. How much leisurewill he take, and how much pizza will he consume?6. Use an…Jien is just bored all the time; no amount of success makes him happy, it seems. Below is a list of his income for the last several years and the utility he experienced per dollar of income: Year Yearly Income Utility per Dollar Earned 2017 $60,000 2 utils 2018 $70,000 1.8 2019 $100,000 1.5 2020 $120,000 1 2021 $145,000 0.40 From the above, we can say that Jien most likely is different from most people economists study in terms of risk attitudes is "risk loving" will not take a fair bet has a utility of wealth curve that is a straight lineSaved to this PC V ut References A A Aa x² A a. b. C. O Search (Alt+Q) Mailings Review View Help Du A A EEE ΕΞ ΑΙ ¶ ↓ E- Paragraph LO Value of first donut Value of second donut Value of third donut Value of fourth donut Value of fifth donut Value of sixth donut S Normal Problem 1 Tammy loves donuts. The table shown reflects the value Tammy places on each donut she eats: $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 If the price of donuts is $0.20, how-many donuts will Tammy buy? Why? Body Text How much consumer surplus would she have at a price of $0.20? Styles m If the price of donuts rose to $0.40, how many donuts would she purchase now? What would happen to Tammy's consumer surplus?