Tag: Economics – Others

d) [4 points] On this same set of axes, draw two representative indifference curves for both individual A and individual B, showing one indifference curve for each lying tangent to their respective time constraint. Recall that A’s wage is twice B’s wage: wA=2wn2. Are individual A’s total earning less than, equa to, or more than twice as much as individual B’s total earnings? Recall that total earnings are the wage times work hours.
e) [2 points] Explain briefly why your answer to Exercise 13(a) may change if you found out that individual A had to spend ten times as many hours on homework during her schooling years as individual B did. (Assume that time spent on homework only achieves education and does nothing else.)
f) [2 points] Explain why it is optimal for individual B to investless in health when she is already less healthy than A . Why does she not invest more to

Consider a homogenous good industry with four firms. Total demand is given by D(p) = 100 – p. The variable (=marginal) cost of each of the firms is c1 = 15, c2 = 25, c3 = 35 and c4 = 40. Firms compete in prices. Suppose firms 1 and 2 merge into one entity and produce with a marginal cost of 10. Which of the following statements is correct?
After the merger, the price in the industry increases by $10 and the profit of the merged entity is 1650.
None of the given answers.
After the merger, the price in the industry increases by $15 and the profit of the merged entity is 1650.
After the merger, the price in the industry increases by $15 and the profit of the merged entity is 975.
After the merger, the price in the industry increases by $10 and the profit of the merged entity is 975.

6 of 29
Suppose the president of a nation proposes a switch from a system of import quotas to a system of tariffs, with the idea that the switch will not affect the quantity of goods imported. Who will be in favor of the switch? Who will oppose it?
Quota holders will oppose the switch; people who will benefit from the tariff revenues will favor the switch.
Quota holders will oppose the switch; people who will benefit from the tariff revenues will favor the switch.
Quota holders will favor the switch; no one will oppose the switch.
Quota holders will favor the switch; no one will oppose the switch.
Quota holders will oppose the switch; no one will favor the switch.
Quota holders will oppose the switch; no one will favor the switch.
Quota holders will favor the switch; people who will not benefit from the tariff revenues will oppose the switch

The National Highway Traffic Safety Administration distributed a film Without Helmet​ Laws, We All Pay thePrice. Two reasons for this title are that some injured motorcyclists are treated at public expense​(e.g.​ Medicaid) and that the dependents of those killed in accidents receive public assistance.
Part 2Does the purchase of a motorcyle by an individual who does not wear a helmet create a negative​ externality? Explain.
Part 3An individual who purchases a motorcycle but does not wear a helmet
Part 4
A.creates a negative externality because motorcycles generate costs on others.
B.creates a negative externality because motorcycles have property rights.
C.does not create a negative externality because motorcycles are a private good.
D.creates a negative externality because motorcycles generate private costs.
E.does not create a negative externality because there is no free riding.

Imagine the following situation: identically qualified and productive workers are divided equally into men and women ( 50% men and 50% women). All employers are men. Not all of the employers are prejudiced against women and a large proportion will hire them for the same work and pay them up to the same wage as men. Women are willing to work for wages less than men rather than not have a job. There is vigorous competition in the labor market. Under these circumstances which of the following will be the long term result?
a. firms will be segregated into those employing only men or only women
b. only firms employing men will survive
c. only firms employing women will survived. segregated and mixed firms may survive and men and women will be paid the samee. segregated and mixed firms may survive and women will be paid less than men according to the degree of prejudice

Roger has worked for an agency, the Federal Reserve, for ten yoars. Recently, Roger has heard rumors that multiple employees have concracted covid-19, a highly contagious and potentially dangerous disease, although they hww recovered completely. Nevertheless, Roger is still concerned about being around these people, so Roger asks his employer, the Federal Reserve, for a list of the employees. The Federal Reserve refuses, so Roger files a Freedom of Information Act 0FOtA) request for the Information. Under the FOM, will the Federal Reserve provide Roger this Ist?
No, because as a current employee of an agency, the Federal Reserve, Roger cannot file a FOA request with the Federal Reserve.
Yes, providing this information does not violate normal agency policies.
Yes, Roger has a good requen for requesting this information.
No, this information is confidential and personal,

Question 57 of 90
Coca-Cola and Pepsi are both releasing a new soda at the same time. Each company is fairly well known, and they are both deciding between pursuing two advertising strategies. Each firm knows thas its profits will be affected by its own decision and the decision of the competing firm. The payoff matrix contains the estimated profits for both companies for all possible strategies. Pepsi’s profits are in the lower (green) triangle of each cell and Coca-Cola’s profits are in the upper (bluc) triangle of each cell. Profits (payoffs) are in millions of dollars.
What is true?
Coca-Cola’s best response changes depending on its opponent’s strategy.
Coca-Cola’s choice in strategy is strategy I
Coca-Cola’s choice in strategy is strategy 2

Real-Time Data Analysis Exercise* Federal Government Budget in fourth quarter of 2024
Item
Amount (billions of dollars)
Tax revenues
5,224.2
Outlays
7,109.9
Transfer payments and debt interest
5,185.2
Expenditure on goods and services
1,924.7
Balance
-1,885.7
Use the information in the table above to identify and label the lines in the graph. Draw a point on the red line and label it. Draw a point on the blue line and label it. Draw a double arrow line to show the deficit and label it. Draw only the objects specified in the question.
*Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis.

Yosemite has a comparative advantage in the production of ◻ – while Denali has a comparative advantage in the production of ◻ . Suppose that Yosemite and Denali specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of ◻ million pounds of corn and ◻ million pounds of basil.
Homework (Ch 03)
The following graph shows the same PPF for Denali as before, as well as its initial consumption at point A.
As wou did for Yosemite, place a black point (symbol) on the following graph to indicate Denal’s consumption after trade.
Consumption After Trade
True or False: Without engaging in international trade, Yosemite and Denali would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)
True
False

Choose the sentence that does not contain any grammatical or spelling errors.
Some people think that the government should use extras money to fund programs to improve the environment. Others think that it is better for the government to spend money to support artistic programs.
Some people think that the government should use extra money to fund programs to improve the environment. Others think that it is better for the government to spend money to support artistic programs.
Some people think that the government should use extra money to fund programs to improve the environment others think that it is better for the government to spend money to support artistic programs.
Some peoples think that the government should use extra money to fund programs to improve the environment. Others think that it is better for the government to spend money to support artistic programs.