Tag: Economics – Others

Question content area Part 1 Suppose a professional basketball game is to be played at a suburban arena, which increases demand for parking on the night of the game.
Part 2 If the suburban area has the ability to create additional parking during periods of peak demand, then
A. the supply of parking will be more elastic and the price of parking will increase by a relatively large amount the night of the game.
B. the supply of parking will be perfectly elastic and the price of parking will increase by a relatively large amount the night of the game.
C. the supply of parking will be more inelastic and the price of parking will increase by a relatively small amount the night of the game.
D. the supply of parking will be more elastic and the price of parking will increase by a relatively small amount the night of the game.
E. the supply of parking will be more inelastic and the price of parking will not change the night of the game.

An injection molding system has a first cost of R1,500,000, and an annualoperating cost of R740,000 in years 1 and 2, increasing by R50,000 per yearthereafter. The salvage value of the system is 35% of the first cost regardlessof when the system is retired within its maximum useful life of 5 years. TheAnnual Worth Values for the 5 years of useful life were calculated by a colleague before he had to leave for urgent customer business.
The values he calculated were:
AW1=-R1,940,000
AW2=-R1,418,492
AW3=-R1,260,176
AW4=-R1,191,822
AW5=-R1,114,483
Accepting the calculation as correct, what is the Economic Service Life (ESL) of the system? Select the correct answer from the options below:
a. The ESL is AW5=-R1,114,483
b. The ESL is 1 year
c. The ESL is AW4=-R1,191,822
d. The ESL is 2 years
e. The ESL is AW3=-R1,260,176
F. The ESL is 3 years
g. The ESL is AW2=-R1,418,492
h. The ESL is 4 years
i. The ESL is AW1=-R1,940,000
j. The ESL is 5 years
k. None of these values

Cement exports from the U.S. into Canada are valued at roughly $119M annually. Cementimports to the U.S. from Canada are valued at roughly $542M annually. Cement production is a highlycarbon intensive process. Suppose the U.S. government must decide whether to impose a carbon tax onthe domestic (U.S.) cement production. One concern is “leakage.” A second concern is the potential toreduce the competitiveness of U.S. cement producers.Answer the following questions. Where applicable make sure to use a supply/demand market model tosupport and demonstrate your results.
(a) (1) How will a unilateral tax on domestic cement production affect the welfare of domesticconsumers and producers?
(b) (1) How does the leakage problem undermine the goal of reducing global carbon emissions fromcement production?
(c) (1.5) How might a border carbon adjustment tariff policy remedy the leakage problem?
(d) (1.5) How would a domestic producer subsidy remedy the government’s anti-competitivenessconcerns

Your friend points to the wages earned by your economics professor and her teaching assistant (TA) as an example of income inequality.
Your tenured professor earns $120,800, drives a BMW, and vacations in Europe, whereas your TA earns $10,100 per year, rides a bike, and vacations at his mom’s house. Because they both teach for a living, your friend argues that this income inequality is not just. Which reply uses the economic life-cycle to respond to your friend’s arguments?
Your professor and TA earn different amounts now but they will have similar earnings over the course of their lives. Your professor was once a TA, and your TA will one day make better money.
Your professor has more bargaining power than your TA and, therefore, has higher earnings.
Older workers typically have more expenses than younger workers due to the high cost of healthcare and other costs that occur later in the life cycle. The differences in wages occur because older workers need more money than younger workers.

Mumbal’s tap water now fit for direct consumption . Though access to dean drinking water is considered a human right, almost 75% of India’s households do not Waler from Mumbal’s taps can now be consumed direSource: The Wre, May 13, 2019 have access to drinking water.
Would a free world market in clean drinking water achieve a fair use of the world’s water resources? Explain why or why not and be clear about the concept of fairness that you are using.
In a tree world market in clean drinking water, the allocation of water would be fair by the fair-view because
A. result: the exchange of water is voluntary
B. nules, the exchange of water is voluntary
C. nles view and by the fair-result view, market price allocates water so that total surplus is maximized
D. result: poor people who own no water and those living in drought-stricken areas receive the most water
E. nules; poor people who own no water and those living in drought-stricken areas receive the most water

Which of the following statements is true about the findings of research regarding optimum hospital size?
The larger the hospital the better the effects of economies of scale.
The smaller the hospital the better the effects of economies of scale as long as the hospital has at least 100 beds.
Larger hospitals demonstrate better economies of scale as long as the hospital is not more than 1200 beds.
Early optimum hospital size research showed 250 beds to produce the best economies of scale.

Multiple Answer
Consider the difference between the conventionally reported budget deficit, and the budget deficit adjusted for inflation. Select the statements below that are true.
Group of answer choices
The inflation-adjusted budget deficit only includes government spending to service the debt owned by foreigners
The inflation-adjusted budget deficit systematically accounts for changes in government spending related to the business cycle
The inflation-adjusted budget deficit considers changes in the value of capital assets owned by the government
In an environment of deflation, the conventionally reported budget deficit will be lower than the inflation-adjusted budget deficit
The conventionally reported budget deficit reflects the impact of uncounted liabilities on government debt, whereas the inflation-adjusted budget deficit does not
In an environment of positive inflation, the conventionally reported budget deficit will be greater than the inflation-adjusted budget deficit

Commonalities/differences for the sources The greatest triumph of capitalism is that it enables humanchoice. It establishes the Sovereignty of Human Choice asthe principle upon which societies are founded and grow. Itprovides mechanisms through property rights and the rule oflaw to ensure that the sovereign choices of one individual donot improperly impinge on the ability of another to exerciseher sovereign franchise. In achieving this feat, capitalismcreates a social structure that ennobles the human spirit,encourages innovation, and feeds physical needs.—Roger B. Butters and We aim to replace the present capitalist system, with itsinherent injustice and inhumanity, by a social order fromwhich the domination and exploitation of one class by anotherwill be eliminated, in which economic planning will supersedeunregulated private enterprise and competition, and in whichgenuine democratic self‑government, based upon economicequality, will be possible.—Regina Manifesto, 1933

1. Please analyse determinants behind the saving-investment balance developments in Turkiye over the 2019-2022 period (graphical presentation plus analytical considerations).
2000
2005
2008
2010
2015
2019
2020
2021
2022
Turkey
Savings (% GDP)
21
24
25
22
26
28
28
32
31
Investments (% GDP)
24
27
29
27
28
25
31
31
35
Interest rate (%)
183
14
16
2
7
11
16
13
8
GDP growth rate (%)
6,9
9
0,8
8,4
6
0,8
1,9
11,4
5,5

63.
Refer to the above labor market diagram where D is the labor demand curve, S is the labor supply curve. The equilibrium wage rate and level of employment would be:
$5 and 3 respectively.
$5 and 4 respectively.
$7 and 5 respectively.
$8 and 3 respectively.
If MRC is the marginal resource (labor) cost curve and it were a monopsonistic labor market, the equilibrium wage rate and level of employment would be:
$5 and 3 respectively.
$6 and 4 respectively.
$7 and 5 respectively.
$5 and 3 respectively.
If a union was formed and was able to get the monopsonist to agree to a $7 wage rate, then the proposals would:
reduce employment from 5 to 3 workers.
reduce employment from 5 to 2 workers.
leave employment at 5 workers.
terminate the level of employment.