Questions
true or false (with explanation) a. according to the Fisher effect, when the inflation rate rises,...

true or false (with explanation)

a. according to the Fisher effect, when the inflation rate rises, the nominal interest rate rises by the same amount so that the real interest rate remains the same.

b. Inflation make them poorer because it raises the cost of what they buy.

c. the principle of monetary neutrality asserts that changes in the quantity of money influence nominal variables but not real variables in short run.

d. If an economy always has inflation of 10 percent per Year there is an inflation cost that will not suffer.

e. Hyperinflations occur when the goverment runs a large budget deficit, which the central bank finances with a substantial monetary contraction.

In: Economics

what is the definition of elasticity of demand? formula? each of the following cases, indicate which...

what is the definition of elasticity of demand?

formula?

each of the following cases, indicate which could you think has a relatively more price elastic demand and identify the reason (more substitutes bigger share of the budget or more times to adjust)

:motorcycles or Harley Davidsons

:peanut butter or housing

:your electric bill this month or over the entire year

If TAXI fares rise what will happen to the total revenue received by taxi operators assuming that the elasticity of demand for TAXI fares is elastic?

In: Economics

The demand curve for turnip can be represented by the following equation: ? = 2000 −...

The demand curve for turnip can be represented by the following equation: ? = 2000 − 400? There are only two producers and the marginal cost to produce a turnip is $2 (There is no fixed cost). If the capacity of each firm is 600 output, calculate the price range of turnip under the Bertrand-Edgeworth Model.

In: Economics

GAME THEORY E-commerce platform is used for facilitating the transaction between buyers and retailers. There are...

GAME THEORY

E-commerce platform is used for facilitating the transaction between buyers and retailers. There are many platforms available in the market, such as Amazon.

i. Draw the payoff matrix of the selection of e-flatform between buyers and retailers.

Retailers
Strategy Platform 1 Platform 2
Buyers Platform 1
Platform 2

ii. Explain whether there is a dominant strategy for buyers and retailers.

In: Economics

Write 450 words analysis about Mike Traxinger and his role and career at Agtegra. Also, Briefly...

Write 450 words analysis about Mike Traxinger and his role and career at Agtegra. Also, Briefly Explain what Agtegra do.

In: Economics

What was one of the major reasons why the United States was slower to recover from...

What was one of the major reasons why the United States was slower to recover from the 2008–2009 recession than Canada?

a

The impact of the rise in house prices on Canadian household consumption was greater.

b

Housing price declines in the United States were much larger than in Canada.

c

Housing price declines in Canadian were much larger than in the United States.

d

The impact of the rise in house prices on American household consumption was greater.

3. When a central bank sets a target for the interest rate, what does it commit itself to?

a

adjusting the money supply in order to meet the interest-rate target

b

having to make open-market sales

c

revealing its target to the public

d

adjusting the demand for money in order to make the equilibrium in the money market hit that target

4. According to supply-side theories, what happens if the government cuts the tax rate?

a

Workers keep more of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.

b

Workers keep less of each additional dollar they earn, so work effort decreases, and aggregate supply shifts left.

c

Workers keep less of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.

d

Workers keep more of each additional dollar they earn, so work effort increases, and aggregate supply shifts right.

5. Which statement is consistent with the Keynesian theory?

a

Changes in consumer confidence are irrelevant for the economy.

b

Short-run economic fluctuations are caused by unstable aggregate demand; therefore, policy instruments should be used to stabilize the economy.

c

Irrational waves of optimism would cause a reduction in aggregate demand and decrease unemployment.

d

Changes in business and consumer expectations generally stabilize the economy.

6. Which statement do opponents of active stabilization policy believe?

a

A monetary policy designed to offset changes in the unemployment rate is effective.

b

Fiscal policy is unable to change aggregate demand or aggregate supply.

c

Fluctuations would not exist in the absence of fiscal policies.

d

The political process creates lags in the implementation of fiscal policy.

7. During recessions, how do automatic stabilizers change government deficit and taxes?

a

Both deficit and taxes decrease.

b

Deficit decreases and taxes increase.

c

Both deficit and taxes increase.

d

Deficit increases and taxes decrease.

8. If the short-run Phillips curve were stable, what would be unusual?

a

an increase in both inflation and unemployment

b

a decrease in inflation and an increase in unemployment

c

an increase in output and a decrease in unemployment

d

an increase in inflation and an increase in output

9. According to Friedman and Phelps, no matter what a central bank does to the money supply, what will happen in the long run?

a

The inflation rate will tend to the natural rate of inflation.

b

The economy will have a zero inflation rate.

c

The unemployment rate will tend toward the natural rate of unemployment.

d

The economy will have a zero unemployment rate.

In: Economics

A firmm purchases a life insurance contract from a sick person, then collects the payout when...

A firmm purchases a life insurance contract from a sick person, then collects the payout when he dies. These types of contracts are called viatical settlements. It is the sale of a policy owner's existing life insurance policy to a third party owner for more than its cash surrender value but less than the net death benefit (Wikipedia). These markets are also referred to as reverse insurance markets. Firms have an incentive to enter into such settlements if they expect the person whose life insurance policy is being purchased to die relatively soon. If the person dies, the firm gets to collect the death benefit.

Q. Did this market suffer adverse selection?

In: Economics

Pinkor is a retail chain selling children´s clothes on the market stalls and small shop that...

Pinkor is a retail chain selling children´s clothes on the market stalls and small shop that it owns. It buys most of its products from wholesalers. Mr. Rakesh, the owner, says: “I think we should start to sell by mail order on the internet and close some of our shops to save money”.

a. Define “distribution channel”

b. Identify two disadvantages to Pinkor of buying supplies from wholesalers

c. Outline two benefits to Rakesh of selling through several small shops rather than by mail order and online

d. Explain two factors which affect Pinkor´s choice of distribution channel

e. Do you think Rakesh is right to want to change the channel of distribution the business uses? Justify your answer.

In: Economics

A firm purchases a life insurance contract from a sick person, then collects the payout when...

A firm purchases a life insurance contract from a sick person, then collects the payout when he dies. These types of contracts are called viatical settlements. It is the sale of a policy owner's existing life insurance policy to a third party owner for more than its cash surrender value but less than the net death benefit (Wikipedia). These markets are also referred to as reverse insurance markets. Firms have an incentive to enter into such settlements if they expect the person whose life insurance policy is being purchased to die relatively soon. If the person dies, the firm gets to collect the death benefit. Answer the following question below that pertain to viatical settlement markets:

Q. Would this type of a market suffer adverse selection problems? Explain your answer clearly. [Hint: Students are advised to look into BHT text or do some Google research on this to be able to answer this question properly. There is the theoretical explanation and then there is what actually happened in the market]

In: Economics

Research and upload five Australian articles relating to phoenix activities that will assist you in answering...

Research and upload five Australian articles relating to phoenix activities that will assist you in answering below. Your articles can be from cases, case notes, journal articles, opinions and publications from legal firms, Government bodies such as the ASIC, APRA, and other specific government bodies such as the ATO. . Discuss whether illegal phoenix activities have occurred in the above scenario. What are the warning signs of illegal phoenixing and whether these warning signs existed in the above scenario?

In: Economics

WITH STEP AND HOW YOU SOLVE IT PLEASE ! Max enjoys windsurfing and snorkeling. Max can...

WITH STEP AND HOW YOU SOLVE IT PLEASE !

Max enjoys windsurfing and snorkeling. Max can either rent windsurfing or snorkeling equipment for a fixed price per hour. The table below shows the total utility Max gets from each activity. Max has a budget of 40$ and windsurfing costs 10$ per hour and snorkeling costs 5$ per hour.

  1. Calculate Max marginal utility from windsurfing at each number of hours per day and calculate Max’s marginal utility from snorkeling at each number of hours per day.
  2. Calculate Max’s marginal utility per dollar from windsurfing at each number of hours per day and calculate Max’s marginal utility per dollar from snorkeling at each number of hours per day.


Hours per day

Total utility from windsurfing

Marginal utility from windsurfing

Marginal utility per dollar windsurfing

Total utility from snorkeling

Marginal utility from snorkeling

Marginal utility per dollar snorkeling

0

0

-

-

0

-

-

1

120

80

2

220

150

3

300

210

4

360

260

5

396

300

6

412

330

7

422

350

8

424

360

  1. In the table below, fill in the combinations of snorkeling and windsurfing that exhausts Max’s budget and fill in the marginal utilities per dollar.
  2. How many hours does Max windsurf and how many hours does he snorkel to maximize his utility?

Consumption possibilities

Windsurfing

(hours)

Snorkeling

(hours)

Marginal utility per dollar windsurfing

Marginal utility per dollar snorkeling

A

B

C

D

E

In: Economics

1. One way to prevent "food insecurity" and promote nutritional health is to develop and operate...

1. One way to prevent "food insecurity" and promote nutritional health is to develop and operate a community garden that grows fresh fruits and vegetables. In addition to the traditional outdoor community garden, there is the possibility of employing an indoor gardening method that uses hydroponics (a water-based "soil") to grow certain fruits and vegetables throughout the year. In either case, resources are required to grow food.

Please list the principal non-human resources required to produce food indoors using hydroponics versus the traditional outdoor gardening method. Please list at least 3 capital and/or natural resources used in each method.

In: Economics

After Hurricane Katrina, a number of cases where a question of whether property damage was wind...

After Hurricane Katrina, a number of cases where a question of whether property damage was wind related or water related were brought to the public’s attention.. Homeowners tend to insure against those negative situations that they deem to be most probable. In a case such as a hurricane, should an insurance company be willing to cover all types of damage even if the homeowner is insured only for water damage. Why?

In: Economics

1. Which of the following statement is true? A. AVC = TC/Q B. MC equals the...

1. Which of the following statement is true?
A. AVC = TC/Q
B. MC equals the change in ATC divided by the change in Q.
C. TFC = TC- TVC
D. TC = TFC- TVC

2. If the marginal cost o the 5,000 unit is $0.06 an the average total cost of the 5,000 unit is $0.10;
A. Average variable cost is falling
B. Average total cost is falling
C. Total cost I falling
D. Average fixed cost is rising

3. If the marginal cost of the 10th unit o output is $15 and the average total cost o the 10th unit of output is $15,
A. Average total cost is increasing at 10 units of output
B. Average total cost is decreasing at 10 units of output
C. Average total cost is minimized at 10 unit of output
D. Average total cost is maximized at 10 units o output

4. Implicit cost are:
A. The opportunity cost of using resources owned by the entrepreneur in his/her own business.
B. Those payments the business owner makes in cash
C. Payments the business owner must make on borrowed founds
D. Cost which vary as the level of output varies

In: Economics

explain weak sustainability and strong sustainability and how each determines whether society is being sustainable. Next,...

explain weak sustainability and strong sustainability and how each determines whether society is being sustainable. Next, explain what types of policies would be advocated for from each position and provide some examples of actual policies that have been implemented. Finally, take a position regarding one of these and argue why it is a better conception of sustainability.

i think weak sustainability has something to do with being able to substitute natural capital with i think it was constructed capital? I think strong sustainability is the opposite where they reject the idea that constructed capital can substitute natural capital. I am a little unclear on what the question is trying to say on whether society is being stable? If someone can help break down the question a little more (if that is possible) I think that would really help me getting started. thanks in advance.

In: Economics