Consider the effect of a proportional tax on hours worked using diagrams to illustrate your answers. Assume consumers are endowed with a certain number of hours of leisure time each week that they can sell to the market in the form of work, Beginning with no tax, draw a diagram to show the effect of the introduction of the proportional tax. Given that leisure is a normal good, provide a theoretical prediction about the effect of the tax on hours worked. Decompose the overall effect of the tax into income and substitution effects. What assumption is required for the tax to cause a decrease in hours worked? ( this is a 30 mark question so could you please elaborate more on it for me
In: Economics
How much money should you save now to have a guaranteed saving of $1,000 per year for 12 years starting next year, at a rate of return of 12% per year?
|
$12,600 |
||
|
$6,200 |
||
|
$12,000 |
||
|
$6,000 |
In: Economics
The production function of a firm is Y = x11/2x21/2 . Suppose in the short run factor 2 is fixed at 400 units. The cost of factor 1 is $2 and the cost of factor 2 is $1. The price of the output is $6 each. What's the maximum profit that the firm can get in the short run?
|
1400 |
||
|
3600 |
||
|
1800 |
||
|
2000 |
suppose the firm is in the long run and can now choose both inputs freely. What's the optimal level of input 1 in terms of y?
|
x1 = Y2/x2 |
||
|
x1= Y/1.41 |
||
|
x1= Y1/2/2 |
||
|
x1= Y/2.45 |
In: Economics
Question 32 (1 point)
Which of the following statements is true?
|
a |
Development of new technologies increase future expected returns, and thus encourage firms to invest more in new technologies, which increases AD. |
|
b |
If excess capacity increases, firms will decrease investment, which decreases AD. |
|
c |
If excess capacity decreases, firms will increase investment in order to expand operations, which increases AD. |
|
d |
All of the above. |
|
e |
Only a) and b) |
Question 33 (1 point)
Which of the following statements is true?
|
a |
Higher business taxes increase costs for businesses and reduce short-run AS. |
|
b |
Business subsidies lower production costs and increase short-run AS. |
|
c |
It is costless for businesses to comply with government regulation. |
|
d |
All of the above. |
|
e |
Only a) and b) |
Question 34 (1 point)
Which of the following statements is true?
|
a |
Increases in investment increase AD; and decreases in investment reduce AD. |
|
b |
As the real interest rate increases, the cost of borrowing increases and thus less funds will be borrowed; this reduces investment and then AD. On the other hand, a decrease in the real interest rate increases borrowing; this increases investment and then AD. |
|
c |
If firms are optimistic about future expected returns, they will invest more now, which increases AD. On the other hand, if firms are pessimistic about future expected returns, they will invest less now, which reduces AD. |
|
d |
All of the above. |
|
e |
Only a) and b) |
In: Economics
Question:
(a)How is an offer made and accepted in electronic Commerce? Cite examples of E-contracts. Use appropriate case law to support your answer
In: Economics
Assume cattle are raised for both meat and hides. Ceteris paribus, how would a rise in the demand for meat affect the price of hides?
Group of answer choices
It would lower the price of hides.
It would raise the price of hides.
Here are four statements about how people’s expectations of future prices affect what they do in the current period.
I If both buyers and sellers expect the price to rise next period, the price would rise
in the current period.
II If both buyers and sellers expect the price to fall next period, the price would fall
in the current period.
III If buyers expect the price to rise next period and sellers expect the price to fall next
period, the quantity traded would rise in the current period.
IV If buyers expect the price to fall next period and sellers expect the price to rise next period, the quantity traded would fall in the current period.
Choose the correct option from the list below.
Group of answer choices
Only I and II are true.
Only I and IV are true.
All four statements are true.
Only II and III are true.
Only III and IV are true.
Flag this Question
Question 71 pts
This question tests your understanding of the market period (also known as the very short run).
At the equilibrium price, the amount by which the total stock exceeds the quantity demanded by buyers is equal to
Group of answer choices
the sellers’ reservation demand
both the options in this list
the quantity supplied by sellers
This question tests your understanding of the market period (also known as the very short run).
At the equilibrium price, the amount by which the total stock exceeds the quantity demanded by buyers is equal to
Group of answer choices
the sellers’ reservation demand
both the options in this list
the quantity supplied by sellers
Here are four statements about (price) elasticities of demand and supply in the market for water.
I The demand for water is MORE elastic in the short run than in the long run.
II The demand for water to drink is LESS elastic than the total demand for water for all other purposes.
III The supply of water is LESS elastic in the short run than in the long run.
IV The supply of drinking water is likely to be MORE elastic than the supply of water for irrigation.
Choose the correct option from the list below.
Group of answer choices
Only III and IV are true.
Only I and II are true.
Only I and IV are true.
Only II and III are true.
This question tests your understanding of income elasticity of demand.
If the income elasticity of a normal good is LESS THAN ONE, total expenditure on the good
Group of answer choices
decreases as a proportion of total household spending
increases as a proportion of total household spending
remains a constant proportion of total household spending
This question tests your understanding of cross-price elasticity of demand.
A If two goods are close substitutes, the cross-price elasticity of demand is negative.
B If two goods are complements, the cross-price elasticity of demand is positive.
Group of answer choices
Both A and B are true.
Only A
Only B
Neither A nor B is true.
In: Economics
In: Economics
Using complete sentences and proper grammar, thoroughly discuss each of the 4 concepts you have chosen (Minimum of 100 words for EACH concept):
During this class, several different macroeconomics concepts were covered.
Select any 4 Macroeconomic concepts/topics/assignments we have covered thus far in class, list them, and explain how the economic concept(s) impacts you. Explain and support your answer (examples are encouraged!)
Examples of topics/concepts: Supply and demand, Diminishing marginal utility, international trade, etc. Thank you!!!!
In: Economics
. Explain how the Covid-19 pandemic has impacted the various types of consumption: durables, semi-durables, and non-durables. How are these impacts different and why?
In: Economics
examine how indifference curves assissts in the understanding of pareto efficiency
In: Economics
In: Economics
Critically do an in-depth Impact analysis of COVID-19 (Corona Virus) on Equity Investments (EI) in Namibia and formulate a Business plan post COVID-19 (next 7 months) with the aim of achieving 6 main Investment objectives for EI?
In: Economics
write down a model or an example of a two-sides market, stating explicitly the key assumptions. Using your model/example, explain if this structure experiences market failures. Justify
In: Economics
Describe the relationship between average variable cost and average total cost. How are the general shapes of the AVC and ATC curves related?
In: Economics
If the Government cut income taxes by 100 billion and the marginal propensity to consume (MPC) is equal to .75? How would this tax cut impact the National Budget and the National Debt? What are the pros and cons of running a deficit? Would you support such a tax cut and for whom should we impose the tax cut?
In: Economics