Questions
Malaysia can produce 20 tons of fish or 5 tons of rice per month. Thailand can...

Malaysia can produce 20 tons of fish or 5 tons of rice per month. Thailand can produce 25 tons of fish or 20 tons of rice per month.

a) Assuming both countries are using the same amount of capital and labor, which country has the absolute advantage in producing fish? In producing rice?

b) What is the opportunity cost of producing one ton of fish for Malaysia? For Thailand? Show work.

c) What is the opportunity cost of producing one ton of rice for Malaysia? For Thailand? Show work.

d) Which country has the comparative advantage in producing fish? In producing rice?

In: Economics

What do you think the long-term ramifications will be for other countries without the US contributions...

What do you think the long-term ramifications will be for other countries without the US contributions to WHO

In: Economics

Capital (K) Labor (L) Output (Q) MPL APL MC AVC ATC 10 0 0    10...

Capital (K)

Labor (L)

Output (Q)

MPL

APL

MC

AVC

ATC

10

0

0

  

10

1

10

10

10

10

2

24

14

12

10

3

39

15

13

10

4

52

13

13

10

5

61

9

12.2

10

6

66

5

11

10

7

66

0

9.4

10

8

64

-2

8

Assume that each unit of labor costs $10 (the wage for a breakfast shift) and that fixed cost is $5.  Also assume that there are no ingredient costs or electricity costs (just to make it easier).

Derive the cost curves:   MC  AVC  and ATC.     Then sketch them (its best to draw and then submit a pdf or jpeg)

Hint: You don’t have enough detail to do MC for each unit of output, so you need to find it for the increments shown in the table (for example MC for the first 10 breakfasts is $10 or $1 per breakfast in that range so put $1 as MC per unit there) So you are finding MC per unit for units in each range based on the info given.  

Fill in columns for MC  AVC and ATC  and graph those cost curves.

In: Economics

21) The two ways to view macroeconomic equilibrium in the Keynesian model are C = S...

21)
The two ways to view macroeconomic equilibrium in the Keynesian model are
C = S and I = Y.
C = Y and S = I.
C = I and S = Y.
C = T and G = S.


22)
According to the table, at what level of income is the economy in equilibrium?
100
150
200
250


23)
Which of the following formulae is the expression of the multiplier?
a + bY
1/(1-b)
1/(1-b) * (a + I)
1/b


24)
Keynes believed that expansionary fiscal policy was the best response to a period of high unemployment.
true
false


25)
What would cause the aggregate expenditures line in the graph to shift upward?
An increase in taxes
A government program that increased consumer savings
A decrease in government spending
An increase in government spending


26)
When NX > 0, it means that we are buying more from foreigners than foreigners are buying from us.
true
false

In: Economics

If Sally’s consumption function is linear and her marginal propensity to consume is 0.8, this means...

If Sally’s consumption function is linear and her marginal propensity to consume is 0.8, this means that
Sally’s total spending cannot exceed 80% of her income.
Sally will spend at least 80% of her total income.
Sally will not save money regardless of her income.
Sally will begin to save at the point where her marginal income is equal to 0.8.

  

  

  
(19)
If a household’s income increases from $50,000 to $60,000, and as a result, its consumption increases from $45,000 to $51,000, then what is the slope of its savings function? (Assume no taxes.)
0.6
0.15
0.85
0.4

  

  

  
(20)
The graph shows aggregate expenditures as a function of income. Given the information in the graph, which of the following statements are true?
There is no autonomous spending.
Business spending, government spending, and net exports are treated as autonomous spending.
Aggregate expenditures do not vary with increasing income.
Aggregate expenditures will fall to $0 when income falls to $0.

  

  

  
(21)
The two ways to view macroeconomic equilibrium in the Keynesian model are
C = S and I = Y.
C = Y and S = I.
C = I and S = Y.
C = T and G = S.

  

  

  
(22)
According to the table, at what level of income is the economy in equilibrium?
100
150
200
250

  

In: Economics

What would happen if the government increased its spending in response to an increase in consumer...

What would happen if the government increased its spending in response to an increase in consumer savings?
The increase in government spending would cause output to rise by even more than it would as a result of the increase in savings.
The increase in government spending would offset (fully or partially) the decline in consumer spending.
The increase in government spending would cause investment spending to fall, causing output to decline.
None of the above.

  

  

  
(8)
An increase in taxes reduces aggregate expenditures by an amount equal to
the change in taxes multiplied by −b.
the change in taxes multiplied by (−b/1 − b).
the change in taxes multiplied by (1/1 − b).
the change in taxes.

  

  

  
(9)
According to Say’s Law, supply creates demand.
true
false

  

  

  
(10)
Which of the following statements regarding aggregate expenditures is correct?
Consumer spending, or consumption, decreases as consumer income increases.
When the interest rate is low, investment spending increases.
If the exchange rate rises, foreigners will increase their purchases of U.S. goods and services.
Government spending depends on aggregate income.

  

  

  
(11)
If the marginal propensity to consume = .85 and taxes = 0, we know that consumers typically save $.15 of each additional dollar of income they receive.
true
false

  

In: Economics

Assume that country X subsidizes its exports and country Y imposes a countervailing tariff that offset...

Assume that country X subsidizes its exports and country Y imposes a countervailing tariff that offset the subsidy. Explain why the relative prices in country Y would be unchanged. Discuss the welfare effects in the two countries. What would be the effect if country Y retaliates with an export subsidy but without countervailing tariffs on the product?

In: Economics

Point A on the graph represents the equality of capital expenditures and income. point where consumption...

Point A on the graph represents the
equality of capital expenditures and income.
point where consumption equals income.
competitive equilibrium.
point where the marginal propensity to consume equals 0.

  

  

  
(13)
According to the aggregate demand/aggregate supply curve, when prices rise,
businesses will cut back spending.
businesses will increase spending by the amount of the price increase.
businesses will increase spending by an amount less than the price increase.
business spending is unaffected.

  

  

  
(14)
___________ are leakages out of the circular flow model.
Exports
Government expenditures
Taxes
Business expenditures

  

  

  
(15)
In the classical view, the macroeconomy is much like the market for apples in the sense that supply and demand will adjust to establish an equilibrium.
true
false

  

  

  
(16)
During the Great Depression, output fell by 40% and unemployment hovered at 25%. According to the classical view of macroeconomics, what should have happened to reduce unemployment?
Wages should have fallen, increasing demand for labor.
Laborers should have switched industries, shrinking the ranks of the unemployed.
The demand for jobs should have resulted in an increase in the supply of jobs.
The excess supply of labor should have resulted in an increased demand for labor.

  

  

  
(17)
Which of the following statements is not true about the aggregate expenditures model (AE = C + I + G + NX)?
Consumer spending depends on consumer income.
Foreign spending depends on the exchange rate.
Government spending depends on the exchange rate.
Business spending depends on the interest rate.

  

  

  
(18)
If Sally’s consumption function is linear and her marginal propensity to consume is 0.8, this means that
Sally’s total spending cannot exceed 80% of her income.
Sally will spend at least 80% of her total income.
Sally will not save money regardless of her income.
Sally will begin to save at the point where her marginal income is equal to 0.8.

  

In: Economics

Assume markets are perfectly competitive. By means of carefully drawn graphs, illustrate the costs and benefits...

Assume markets are perfectly competitive. By means of carefully drawn graphs, illustrate the costs and benefits of: (1) a tariff for the importing country; (2) an export subsidy; and (3) an import quota. How do the welfare effects of voluntary export restraints compare with tariff and quotas policies?

In: Economics

What are the key assumptions that allow strategic trade policy to work effectively in the Brander-Spencer...

What are the key assumptions that allow strategic trade policy to work effectively in the Brander-Spencer analysis, what are the key conclusions of the analysis? Discuss. What do you think are the potential problems with the Brander-Spencer analysis? Discuss.

In: Economics

Hi,I need the fastest possible answer, I need solution for this issue with all the details...

Hi,I need the fastest possible answer, I need solution for this issue with all the details just nu .BR/Ha

1-Give an overview of the studies testing discrimination in education.

In: Economics

Consider the following advertising game between two restaurants in a small town in Raub. Do Not...

Consider the following advertising game between two restaurants in a small town in Raub.

Do Not advertise Advertise
Do Not advertise 3,3 0,4
Advertise 4,0 1,1

a) Find the Nash equilibrium if the restaurants need to make their decision
simultaneously.

b) If the game is played repeatedly for an infinite number of times, calculate the discount
factor that will make cooperation sustainable if the restaurants are using grim trigger
strategy.

In: Economics

3 possible examples of the Opportunity Costs about a person would face if he/she were to...

3 possible examples of the Opportunity Costs about a person would face if he/she were to join a branch of the Military Service (i.e. Army, Navy, Air Force, Coast Guard, Marines). Be specific and give details.  

In: Economics

Referring to the concept of Demographic Dividend(s) and the mechanisms of delivery of Demographic Dividend(s), discuss...

Referring to the concept of Demographic Dividend(s) and the mechanisms of delivery of Demographic Dividend(s), discuss how demographic factors contributes to economic growth in China and India.

In: Economics

Explain why both unemployment and inflation rose in the 1970s?

Explain why both unemployment and inflation rose in the 1970s?

In: Economics

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