Questions
In a closed economy with a government, if Saving is greater than Investment then, Question 41...

In a closed economy with a government, if Saving is greater than Investment then,

Question 41 options:

consumpton must be less than saving

saving must be less than consumption

the government must be running a budget surplus

the government must be running a budget deficit

As the public becomes nervous about the viability of many borowers, the Fed can alleviated some of the panic by:

Question 43 options:

selling bonds to the public

buying bonds from the public

cuttng the money suppoy and raising interest rates

spending on infrastructure

If the marginal propensity to consoume is .60 then,

Question 44 options:

the marginal propensity to save is .40 and the multiplier is 1.67

the marginal propensity to save is .40 and the multiplier is 2.5

the marginal propensity to save is 2.5 and the multiplier is 4.0

the marginal propensity to save is 1.67 and the multiplier is 4.0

A law requiring an annually balanced federal budget would tend to:  

Question 45 options:

create inflation

make recessions worse

magnify the multiplier effect

stabilize the economy

In: Economics

(a) Haris spends all of his income on apples and oranges. He thinks that apples and...

(a) Haris spends all of his income on apples and oranges. He thinks that apples and oranges are perfect substitutes; one apple is just as good as one orange. Apples cost $4 a unit and oranges cost $5 a unit. His income is given by $120 per month. If the price of apples increases to $6 a unit, calculate the (i) Slutsky substitution (ii) Income and (iii) the total effect of a price decrease on the consumption of apples. (b) Now assume that he thinks apples and oranges are perfect complements. Apples cost $4 a unit and oranges cost $5 a unit. His income is given by $120 per month. If the price of apples decreases to $3 a unit, calculate the (i) Slutsky substitution (ii) Income and (iii) the total effect of a price decrease on the consumption of apples.

In: Economics

Suppose that changes in nominal interest rate have a negligible effect on velocity of money. Then,...

Suppose that changes in nominal interest rate have a negligible effect on velocity of money. Then, if risk premium of a country increases, what happens to consumption, investment and net exports in short run? How does price level change from short run to new long run? Explain.

In: Economics

The following are costs incurred by a shoe manufacturer. Determine and explain whether each one is...

The following are costs incurred by a shoe manufacturer. Determine and explain whether each one is a fixed cost or a variable cost or has some element of both.

(a) The cost of leather.

(b) The fee paid to an advertising agency.

(c) Wear and tear on machinery.

(e) Electricity for heating and lighting.

(f) Electricity for running the machines. (

g) Basic minimum wages agreed with the union.

(h) Overtime pay.

In: Economics

Assume that there are only two countries in the world: USA and Brazil, so all international...

Assume that there are only two countries in the world: USA and Brazil, so all international transactions are only between those two countries. The table gives the information regarding international transactions of USA in 2018:

ITEM

Billions of US Dollars

Imports of goods from Brazil

185

Imports of services from Brazil

120

Foreign direct investment by Brazil to the USA

14

Exports of goods to Brazil

238

Exports of services to Brazil

155

US investment to Brazil

110

Income received from Brazilians

12

Income paid to Brazilians

6

Net unilateral transfers between USA and Brazil

5

Balancing item

-3

  1. Calculate the US trade balance
  2. Calculate the US current account balance
  3. Calculate the US financial account balance
  4. Was the United States a net borrower or a net lender? Explain your answer.
  5. Assume that an exchange rate of USD increased from 3.14 Brazilian Reals to 4.62 Brazilian Reals for 1 USD. Explain how this change may affect the US trade balance, current account balance, and the financial account balance.

In: Economics

In the case of floating exchange rates. Can you discuss the macroeconomic interdependence of crises. Provide...

In the case of floating exchange rates. Can you discuss the macroeconomic interdependence of crises. Provide examples of countries. Include in your discussion the idea of Monetary Policy coordination failure.

In: Economics

What are your views on political instability in poor countries?

What are your views on political instability in poor countries?

In: Economics

Suppose two firms are engaged in Stackelberg Competition. The demand curve is P = 56 -...

Suppose two firms are engaged in Stackelberg Competition. The demand curve is P = 56 - 2Q and MC=20. What is the equilibrium market quantity?

In: Economics

Assume that there are only two countries in the world: USA and Brazil, so all international...

Assume that there are only two countries in the world: USA and Brazil, so all international transactions are only between those two countries. The table gives the information regarding international transactions of USA in 2018:

ITEM

Billions of US Dollars

Imports of goods from Brazil

185

Imports of services from Brazil

120

Foreign direct investment by Brazil to the USA

14

Exports of goods to Brazil

238

Exports of services to Brazil

155

US investment to Brazil

110

Income received from Brazilians

12

Income paid to Brazilians

6

Net unilateral transfers between USA and Brazil

5

Balancing item

-3

  1. Calculate the US trade balance
  2. Calculate the US current account balance
  3. Calculate the US financial account balance
  4. Was the United States a net borrower or a net lender? Explain your answer.
  5. Assume that an exchange rate of USD increased from 3.14 Brazilian Reals to 4.62 Brazilian Reals for 1 USD. Explain how this change may affect the US trade balance, current account balance, and the financial account balance.

In: Economics

In an isolated village (no trade with the outside world) in which good harvests alternate with...

In an isolated village (no trade with the outside world) in which good harvests alternate with bad harvests from year to year, the only crop is wheat. This year the harvest will be 2,000 tons and next year it will be 300 tons. Wheat can be stored, but rats will eat 20% of what is stored in a year. The villagers have the Cobb-Douglas utility function ?(?#, ?$) = ?#?$, where ?# is consumption this year and ?$ is consumption next year.
a. (7 points) What is the budget constraint? Draw the budget constraint on a graph with this year’s consumption on the horizontal axis and next year’s consumption on the vertical axis. On your graph show the quantities at which the budget line intercepts the vertical and horizontal axes.

b. (8 points) How much will the villagers consume in each year? How much wheat will the rats eat? (Hint: You can solve this problem using the Lagrangian function.)

In: Economics

After having described the functioning of the walrasian economy (links with the various schools ,hypotheses ,conclusions)...

After having described the functioning of the walrasian economy (links with the various schools ,hypotheses ,conclusions) you will discuss its contributions of its limits.

In: Economics

Country A and B each have 1000 units of labour. In-country A one unit of labour...

Country A and B each have 1000 units of labour. In-country A one unit of labour can produce 10 computers or 30 kg of cheese. Country B can use one unit of labour to produce 14 KG of cheese or 16 computers. Suppose country B follows its comparative advantage in deciding what to produce and trades with Country A at a trade price of 1.7 kg of cheese per computer and country B consumes 6400 computers at home, then country B gain from trade would be

______ kg of cheese

do not round your calculations untik you reach the final answer. Round two decimals.

In: Economics

Tell the economic story of the US 2000-2010 decade. Be sure to include specific examples and...

Tell the economic story of the US 2000-2010 decade. Be sure to include specific examples and data points that help tell the story. Like a brief overview of what happened in the economy.

You can include things like the GDP, civilian unemployment rate, interest rates, unemployment/inflation, foreign trade, and fiscal policys that effected this decade. Not too much information but just an overview. Thanks!

In: Economics

A manufacturing company is planning to purchase a conveyor belt. They would like you to compare...

A manufacturing company is planning to purchase a conveyor belt. They would like you to compare two following conveyor belt options and let them know which conveyor belt company should purchase at MARR is 12%. Justify your answer using PW analysis.

Convey belt 1: initial cost 30,000 and annual maintence cost is 5,000 decreased by 800 each year until the end of its life. the annual savings is 20,000 and salvage is 10,000. The useful life is 3 years.

convey belt 2: Initial cost is 30,000 and annual maintenance cost is 10,000 decreased by 12% each year until the end of its life. annual savings is 15,000 increased by 22%. The salvage value is 20,000 and the useful life is 4 years

In: Economics

Because technology is rapidly changing the world, grandparents aren’t the experts they were in past generations...

Because technology is rapidly changing the world, grandparents aren’t the experts they were in past generations when the pace of change was slower. A mobile society and large segregated “adult” communities keep grandparents and grandchildren apart for most of their lives.


Children today look to their peers to teach them “important” things such as the best TV show, the newest fashions, drug information, sex information, etc. According to Robert and Shirley Strom, this undermines our society because it breaks it up into special interest groups who feel they have nothing in common with each other.


Do you agree with the Stroms' assessment? Why or why not? How might this phenomenon affect generativity? Does it matter? If we should improve intergenerational relations, how could we best go about doing it?


In: Economics