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Principles of Macroeconomics Construct a Budget Constraint (in an Algebraic equation and Graph form) for 'Rational'...
Principles of Macroeconomics
Construct a Budget Constraint (in an Algebraic equation and Graph form) for 'Rational' Consumer A from the following characteristics: Total resources = 2000 units; Good X ; Price of Good X = 200 units; Good Z; Price of Good Z = 10 units: Identify (label) areas of 'economic efficiency' and 'economic inefficiency'. Explain what is meant by 'economic efficiency' and 'economic inefficiency'.
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Economic efficiency means the situation where nothing can be improved without something else being hurt or where no one can be made better off without making others worse off. There are two concepts of economic efficiency- allocative efficiency and productive efficiency.
Economic inefficiency means the situation where there is some
scope of improving the condition by making people better off
without making others worse off. It is possible to generate a
larger share of welfare with the available resources.
Rahul Sunny answered 2 years agoRelated Solutions
Using a set of data, you will graph a budget constraint and express it as an...
Using a set of data, you will graph a budget constraint and
express it as an algebraic equation. You will also determine the
combination of two goods that gives the maximum total utility.
Instruction: Suppose that as a consumer you have $34 per month
to spend for munchies, either on pizzas which cost $6 each or on
Twinkies which cost $4 each. Suppose further that your preferences
are given by the following total utility table.
Count
1
2
3
4...
Suppose Betty’s budget constraint is described by the equation $400=5x1+10x2 Draw this budget equation? What is...
Suppose Betty’s budget constraint is described by the equation
$400=5x1+10x2 Draw this budget equation? What is the slope of the
budget line? Suppose now that the government places a tax of $2 per
unit on good 2. Draw the new budget line? Suppose the tax is only
for consumption over 10 units of x2. Now draw the budget line.
Finally, suppose that the government decides to stick with the tax
on x2 for consumption over 10 units, but it also...
2. a. Graph a budget constraint for an individual with 280 hours a week, nonlabor income...
2. a. Graph a budget constraint for an individual with 280 hours
a week, nonlabor income of $120 per week, and a wage of $10 per
hour.
Show this person's indifference curve such that he is working 50
hours a week. Label his leisure, labor, and income.
b. suppose this individual decides to work 60 hours a week once
his wage increases to $12 per hour. Which portion of his labor
supply curve is he on (Is the substitution effect...
For each of the following cases, (1) graph the budget constraint and at LEAST 2 indifference...
For each of the following cases, (1) graph the budget constraint
and at LEAST 2 indifference curves (2) indicate the utility
maximizing point (and the indifference curve that corresponds with
that point) (3) SHOW and briefly explain what you would expect to
happen if the price of the good changed as indicated, in terms of
income and substitution effects. (Show income and substitution
effects on your graph too) In all cases, assume that your intital
income is $50 and that...
For each of the following cases, (1) graph the budget constraint and at LEAST 2 indifference...
For each of the following cases,
(1) graph the budget constraint and at LEAST 2 indifference
curves,
(2) indicate the utility maximizing point (and the indifference
curve that corresponds with that point),
and (3) SHOW and briefly explain what you would expect to happen
if the price of the good changed as indicated, in terms of income
and substitution effects. (Unlike the exam, you MUST
show income and substitution effects on the graph.)
In all cases, assume that your intital income...
2 (a) Emily has a budget constraint with the form m ≥ pxx + pyy, (where...
2 (a) Emily has a budget constraint with the form m ≥ pxx + pyy,
(where m = income, px, py are prices of x and y ), and is observed
to choose (x, y) = (3, 5) when (px, py) = (1, 2) and (x, y) = (5,
3) when (px, py) = (2, 1). Is Emily's behaviour consistent with the
(weak) axiom of revealed preference? (b) Suppose Emily has no
income, but has 10 units of x, 4...
2 (a) Emily has a budget constraint with the form m ≥ pxx + pyy, (where m =...
2 (a) Emily has a budget constraint with the
form m ≥ pxx +
pyy,
(where m =
income, px,
py are prices of x
and y ), and is observed to choose (x,
y) = (3, 5) when (px,
py) = (1, 2) and (x,
y) = (5, 3) when (px,
py) = (2, 1). Is Emily's behaviour consistent
with the (weak) axiom of revealed preference?
(b) Suppose Emily has no income, but has 10 units of x,
4 units of y, and...
Question 2. (a) A consumer has a budget constraint which takes the usual form m ≥ pxx...
Question 2.
(a) A consumer has a budget constraint which takes the usual
form m ≥ pxx +
pyy,
(where m is income
and px,
py are the prices of
x and y respectively), and is observed
to choose (x, y) = (3, 5) when
(px, py) = (1,
2) and (x, y) = (5, 3) when
(px, py) = (2, 1). Is the
consumer’s behaviour consistent with the (weak) axiom of revealed
preference?
(b) Suppose an individual has no income, but is endowed with...
Assume M=$100, PX=$5 and PY =$10. Graph the budget constraint. Label the intercepts with their appropriate...
Assume M=$100, PX=$5 and PY =$10. Graph the budget constraint.
Label the intercepts with their appropriate numbers and the slope
as well
Now let’s assume income doubles so that M=$200. On the same
space as above, graph the new budget constraint while appropriately
labeling everything again.
Need help with third part:
Assume M=$100 again. But now, the price of good X increases from
$5 to $10. Graph a 3rd budget constraint on the above graph and
label everything.
give the equation for current density in form of fermi dirac distribution function and graph it
give the equation for current density in form of fermi dirac
distribution function and graph it
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