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Category: Economics

  • (Answered) Method 2: Tradable Permits Meanwhile, the other employee proposes using a different strategy to…

    Method 2: Tradable Permits Meanwhile, the other employee proposes using a different strategy to achieve the government’s goal of reducing pollution in the area from 12 units to 6 units. This employee suggests that the government issue two pollution permits to each firm. For each permit a firm has in its possession, it can emit 1 unit of pollution. Firms are free to trade pollution permits with one another (that is, buy and sell them) as long as both firms can agree on a price. For example, if firm A agrees to sell a permit to firm B at an agreed-upon price, then firm B would end up with three permits and would need to reduce its pollution by only 1 unit while firm A would end up with only one permit and would have to reduce its pollution by 3 units. Assume the negotiation and exchange of permits are costless. Because firm B has high pollution-reduction costs, it thinks it might be better off buying a permit from firm C and a permit from firm A so that it doesn’t have to reduce its own pollution emissions. At which of the following prices is firm C willing to sell one of its permits to firm B, but firm A is not? Check all that apply.
    $90
    $178
    $186
    $451
    $529

  • (Answered) If price is $7 per unit of output, draw the marginal revenue curve. The manager should produce ____…

    If price is $7 per unit of output, draw the marginal revenue curve. The manager should produce ____ units to maximize profit. Because average total cost is $ ____ for this output, total cost is $____________. The firm makes a profit of $____________. At ____________ units, profit margin (or average profit) is maximized. Why is this output level different from the answer to part a? Let price fall to $3, and draw the new marginal revenue curve. The manager should now produce ____________ units to maximize profit. Total revenue is now $____________ and total cost is $____________. The firm makes a loss of $____________. Total variable cost is $____________, leaving $____________ to apply to fixed cost. If price falls below $____________, the firm will produce zero output. Explain why. PROVIDE ALL EQUATIONS AND EXPLANATIONS FOR EACH

  • (Answered) Attached is a picture of income growth for various income sectors of the US economy. That is the…

    Attached is a picture of income growth for various income sectors of the US economy. That is the actual income growth for each percentile of the economy. So, for example the lowest 10% of the income universe had a certain income growth, the 2nd lowest 10% had a different income growth, and so on. The 2 lines are for 2 different time periods: 1980, 2014. Obviously what the actual income growth happened to be at any instant in time will be the basis of expected income growth. a. explain what the chart means for expected growth for various percentiles in the 2 time periods? b. what does this suggest about the distribution of income movement over time period? c. given that students, just starting their career, will be at the lower percentile of income, how does this affect expectations for income opportunities for a student looking at their prospects in 1980 as opposed to 2014? d. any other thoughts you might have. Gather your thoughts, make the video covering all the questions, this is a lot, but keep this short: 1 – 2 minutes. Use some concepts from Chapter 23 in your discussion. Feel free to comment on any of your colleague’s video. Extra credit 10 points

  • (Answered) Which of the following statements is true about money laundering?A) It ends with the collection of…

    Which of the following statements is true about money laundering?
    A) It ends with the collection of dirty money from drug barons.
    B) It is ranked last on the list of transnational crimes by the United Nations.
    C) It usually involves the physical transfer of cash out of a country.
    D) It usually begins with the layering of dirty money in an economy.
    No other form of transnational and organized crime is as costly in terms of human suffering and national financial burden as theA) illegal trade in arms.B) trafficking of young children by pimps.C) mass killing of people by sea pirates.D) illicit trade in narcotic drugs.
    19 ◻ are the major criminal offenses so designated by the community of nations for the protection of interests common to all humankind.
    A) Intranational crimes
    B) International crimes
    C) Worldwide crimes
    D) Global crimes
    In the context of the categories of transnational criminality that emerged from a report by the United Nations, which of the following categories ranks number one on the list because of its massive impact on the global economy?
    A) money laundering
    B) terrorist activities
    C) illicit traffic in arms
    D) aircraft hijacking

  • (Answered) At the Stratford Festival Thealre no reservations are accepled on the day of the performance; at…

    At the Stratford Festival Thealre no reservations are accepled on the day of the performance; at matinees, reservations are accepled, at opening night perfornances reservations are esseriki. Describe the method of allocating seats in these three performances. Why do you thirk the Stratford Feutival Thealte has different reservations polcies?
    On the day of the performance, Stratford Festival Theatre allocates seals by ◻
    A. majority rule
    B. first-come, first-served
    C. personal characteristics and first-come, first-served
    D. a command system; a combination of a command system and first-come, first-served
    At matinees, Stratford Festival Theatre allocates seals by ◻
    A. majority rule
    B. first-come, first-served
    C. personal characteristics and first-come, first-served
    D. a command system; a combination of a command system and first-come, first-served
    At opening night performances, Stratford Festival Theatre allocales seats by ◻
    A. majority rule
    B. lottery
    C. personal characteristics
    D. first-come, first-served
    Stratford Festlval Theatre uses different allocation policies because theatre patrons who althend opening night place a ◻ value on time, while theate patrons who want sciests on the day of the performance place a q, value on time.
    A. low, high
    B. highclow
    C. low, low
    D. high; high

  • (Answered) Question 15We have data on life expectancy for a large number of countries. Life expectancy is…

    Question 15
    We have data on life expectancy for a large number of countries. Life expectancy is measured in years. Expenditures are overall health expenditures. We also have data on GDP per capita (measured in thousands of US 2010 dollars) and six dummy variables indicating region (EastEur = 1 for countries from Eastern Europe, LatinAmerica = 1 for countries in Latin America, Asia ( =1 ) for countries in Asia, NorthAm ( =1 ) for countries from North America, etc). We estimate the following regression, where dummy variables for all regions except North America are included, and obtain the following results:Life ( widehat{text { Expectancy }}=72.30+0.29 ) Expenditures +0.023 GDPpc +2.08 EastEur +Suppose we had instead excluded Middle East (and included North America). What would be the (approximate) value for the coefficients of the following variables (enter your answer rounded to two decimal places):The estimated intercept would be , the coefficient on expenditureswould be , the estimated coefficient on the NorthAm dummy variablewould be , and the estimated coefficient on the Eastern Europe dummy variable would be

  • (Answered) Comparative and absolute advantageDavid and Morgan are farmers. Each one owns a 12-acre plot of…

    Comparative and absolute advantageDavid and Morgan are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest.
    Production per acre
    Zucchini
    (Pounds per acre)
    Watermelon
    (Pounds per acre)
    David
    6
    2
    Morgan
    8
    4
    On the following graph, use the blue line (circle symbol) to plot David’s production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Morgan’s PPF.◻ has an absolute advantage in the production of zucchini, and ◻ F. has an absolute advantage in the production of watermelon.David’s opportunity cost of producing 1 pound of watermelon is ◻ pounds of zucchini, whereas Morgan’s opportunity cost of producing 1 pound of watermelon is ◻ pounds of zucchini. Because David has a ◻ opportunity cost of producing watermelon than Morgan,◻ has a comparative advantage in the production of watermelon, and ◻ has a comparative advantage in the production of zucchini.

  • (Answered) 3. Agreement and disagreement among economistsSuppose that Andrew, an economist from a college in…

    3. Agreement and disagreement among economists
    Suppose that Andrew, an economist from a college in Pennsylvania, and Beth, another economist from a university in Florida, are both guests on a popular science podcast. The host of the podcast is facilitating their debate over saving incentives. The following dialogue represents a portion of the transcript of their discussion:
    Beth:
    I think it’s safe to say that, in general, the savings rate of households in today’s economy is much lower than it really needs to be to sustain an improvement in living standards.
    Andrew:
    I think a switch from the income tax to a consumption tax would bring growth in living standards.
    Beth:
    You really think households would change their saving behavior enough in response to this to make a difference? Because I don’t.
    The disagreement between these economists is most likely due to .
    Despite their differences, with which proposition are two economists chosen at random most likely to agree?
    Minimum wage laws do more to harm low-skilled workers than help them.
    Tariffs and import quotas generally reduce economic welfare.
    Lawyers make up an excessive percentage of elected officials.

  • (Answered) Q5. To increase total output while maintaining investment expenditures, the policymakers…

    Q5. To increase total output while maintaining investment expenditures, the policymakers should_____. A) B) C) D) adopt an expansionary monetary policy but keep fiscal policy unchanged. adopt an expansionary monetary policy and an expansionary fiscal policy. adopt an expansionary monetary policy and a contractionary fiscal policy. keep monetary policy unchanged but adopt a contractionary fiscal policy. e) None of the above.
    Q6. Expansionary fiscal policy is less effective in increasing output: a. if investment is very sensitive to interest rate b. if money demand is very sensitive to income c. if money demand is very sensitive to the interest rate d. in two of a-c e. in all of a-c
    Q7. [True or False] If money demand does not depend on income, the LM curve is horizontal and the fiscal policy is very effective in changing output.
    Q8. [True/False] If money demand is highly insensitive to the interest rate, the LM curve is very steep and monetary policy is highly ineffective in changing output.
    Q9. [True/False] Consider two points on a fixed LM curve. At the point located higher, people want to hold a larger amount of money than at the one located lower.

  • (Answered) How would each of the following affect the firm’s marginal cost (MC), average variable cost (AVC),…

    How would each of the following affect the firm’s marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves?
    The government imposes a fixed amount of tax.
    (A) decrease MC, no change AVC, decrease ATC
    (B) increase MC, increase AVC, increase ATC
    (C) no change MC, no change AVC, increases ATC
    (D) increase MC, no change AVC, increase ATC
    (E) decrease MC, decrease AVC, decrease ATC
    (F) no change MC, no change AVC, decreases ATC
    An increase in wages.
    (A) decrease MC, no change AVC, decrease ATC
    (B) increase MC, increase AVC, increase ATC
    (C) no change MC, no change AVC, increases ATC
    (D) increase MC, no change AVC, increase ATC
    (E) decrease MC, decrease AVC, decrease ATC
    (F) no change MC, no change AVC, decreases ATC
    A decrease in material costs.
    (A) decrease MC, no change AVC, decrease ATC
    (B) increase MC, increase AVC, increase ATC
    (C) no change MC, no change AVC, increases ATC
    (D) increase MC, no change AVC, increase ATC
    (E) decrease MC, decrease AVC, decrease ATC
    (F) no change MC, no change AVC, decreases ATC
    The rent that the firm pays on the building that it leases decreases.