Category: Economics

Of the following response options, which is NOT an important reason to measure poverty?Question 31 options:
To define, improve and implement poverty reduction strategies when necessary.For example: The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided Economic Impact Payments of up to $1,200 per adult for eligible individuals and $500 per qualifying child under age 17.
To use poverty policies to punish deficient individuals because they truly are at fault for their own poor financial status.
To monitor individual and family poverty to determine if new variables/events/programs are positively or negatively impacting poverty. For example: the Pandemic and the programs created during the Pandemic.
To evaluate the impact of a long-term or short-term poverty reduction strategy.For example: Analysts are now realizing that many businesses illegally received funds from the Paycheck Protection Program that was a Small Business Association-backed (SBA) loan designed to help businesses keep their workforce employed during the COVID-19 crisis. Justice Department Inspector General Michael Horowitz, stated that the Covid relief programs were structured in ways that made them ripe for plunder.

Assume a firm is a monopolist in the output market (facing a product demand curve of p = 967 – 5Q) and purchases labor in a competitive labor market at a wage rate of w. The production function is Q = K 0.25 L. The capital is fixed at 12455 in the short-run.
a) Solve for the profit-maximizing quantity (Q) and price (p) and the quantity of labor (L) as a function of the wage rate (w) in the short run.
b) Assuming that the supply curve for labor is given as L=4+w, find the equilibrium labor quantity (L) and wage (w).

Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022.
The cost of each good in the basket as well as the basket’s total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table.
Price (Dollars)
Cost (Dollars)
Price (Dollars)
Cost (Dollars)
Price (Dollars)
Cost (Dollars)
Suppose this price index uses 2020 as the base year.
In the last row of the table, calculate and enter the value of the UPI for the remaining years.
Between 2020 and 2021, the UPI increased by . Between 2021 and 2022, the UPI increased by
Which of the following, if true, would illustrate why price indexes such as the UPI might overstate inflation in the cost of going to college? Check all that apply.
Professors required each student to buy 10 textbooks, regardless of the price.
A new, cheaper internet option rolled out services nationwide.
Energy drinks became increasingly popular on college campuses between 2020 and 2022 due to significant improvements in flavor, but

Consider an economy, starting from the below full employment equilibrium denoted as point A. Please label variables clearly.
Draw an aggregate demand and aggregate supply (AD-AS) dagram to show that the economy is Initially below full employment equilititum (denoted as a point AN during the COVID19 in March 2020.
From question (a). IT the US central bank (Fefl) conducts open market purchase or buys bonds, how does this situation affect the AD-AS dagram? What will happen to the equilibrium price level and real GDP in the short run? Explain your answer. (Please write the new equilibrium point denoted as the point B)
From question (a), assume that nelther the Fed nor the sovernment imposes any pollicies to simulate the economy. According to the consept of seil-correction, in the long run, what will happen in the economy? How is the economy being improved? Explain it in words and graphically, using AD-AS diagram?
From guestion (a) how does government use fueal polloy to maintain full employment. using AE model and AD-AS digram? What is the new ceptitum of real GOP if the sovernment increases spending by $8.8 trillion when the MPC is 0.3 the government consumption multiplier was around 0.8 in 2020

B.1-1: Moving toward Long-run Equilibrium
Consider a perfectly competitive industry in the diagram below. The left panel of the diagram depicts the industry’s aggregate supply and demand curves, currently at S
1
and D
1
, respectively. The right panel of the diagram depicts the cost curves of a typical profit-maximizing firm in this industry. Since we are dealing with long-run adjustments, all inputs are variable and, thus, the ATC curve is the same as the AVC curve.
Market Quantity, Q (in millions) Representative Firm Quantity, q (in thousands)
What is the industry’s equilibrium price and quantity? (Hint: left panel)
Answer: P* = Q* = M Units
What is the firm’s profit-maximizing output quantity, q*? (Hint: right panel)
Answer: q* = K Units
Given q*, what is firm’s total cost per unit of output?
Given q*, what is the firm’s profit per unit of output? (Include a minus sign as needed.)
What is the firm’s total profit? (Include a minus sign as needed.)
Given your answer in (5), will there be entry or exit?
Answer:

Lizzy Pope and Jean Harvey found that offering​ first-year university students money to go to the gym on a regular basis increased gym attendance in the fall semester between 49 and 51 percent and by 36 percent in the spring semester. They also found that the impact of the monetary incentive decreased when the number of trips required to get paid increased from 2 per week to 5 per week.
Part 2a. Why might a monetary payment affect whether or not people go the gym when the health benefits of physical activity are so well​ documented?
A.Using a gym is likely to have negative effects on​ someone’s health. The monetary payment is necessary because there are no​ health-related incentives for going to the gym.
B.When deciding whether or not to go to the​ gym, people are comparing what they miss out on and the relatively small benefit any single workout will have on their overall health. The monetary payment creates an incentive for each individual workout.
C.Health benefits cannot be considered as incentives. Incentives apply only to monetary values. People only consider monetary effects before taking action.
D.The monetary payment will have a negative effect on whether people decide to go to the gym.

For each statement below, state whether it is true or false.
If there are diminishing returns, the marginal cost curve must be positively sloped.
True
False
Marginal costs decrease as output increases because the firm can spread fixed costs over more units.
True
False
If average cost is increasing, marginal cost must be increasing.
True
False
For each production function below, indicate returns to scale.
Q = 10 + 5L + 5K
decreasing returns to scale
constant returns to scale
increasing returns to scale
Q = L0.4K0.7
decreasing returns to scale
constant returns to scale
increasing returns to scale
Q = L0.6K0.4
decreasing returns to scale
constant returns to scale
increasing returns to scale
Q = 5L + 5K + 5LK
decreasing returns to scale
constant returns to scale
increasing returns to scale
Q = L0.3K0.3N0.3
decreasing returns to scale
constant returns to scale
increasing returns to scale