The income elasticity of Abigail’s demand for CDs is 0.75. For Abigail Cds are a normal good or an inferior good? Explain your answer.

Q: Greenmail Raider Do not Buy buy Management Raider 10 Management 10 Greenmail No greenmail Raider 15 ...

A: Backward induction is used by the Raider to pick takeover at the final decision node.

Q: Assume the wages of carpenters increases. Describe what will happen to the supply of houses

A: Supply of a good shows direct relationship between price and quantity supplied.

Q: Question One @ Zabron has preferences > for Champagne (good 1) and Wine (good 2) defined by: (*, x2)...

A: Without loss of generality we assume that x1<x2 and z1<z2 for the entire problem. i. From the ...

Q: Ceteris paribus , in a closed economy , if consumers become more pessimistic ------? -saving will i...

A: When talking about pessimistic behavior, it can be said that people will have lesser confidence on t...

Q: What is the solution to the income disparity between affluent and poor?

A: Income disparity is such a condition which shows amount of total income that is unevenly distributed...

Q: following table, select the amount of each good that each country exports and imports in the boxes a...

A: A country has a comparative advantage in manufacturing that good if the opportunity cost of manufact...

Q: Which of the following scenarios would result in a decrease in Aggregate Demand? A) The congress pa...

A: Aggregate Demand is the sum of consumption expenditure, government spending, investment spending and...

Q: a) Consider the following consumption data for the economy of Ruthenia: Item Quantity Prices 2021 $5...

A: Item Quantity Price 2021  Cost of basket in 2021 ($) (Price of 2021*Quantity) Price 2022 Cost of ...

Q: Nominal interest rate (percent per year) 8 MS 4 MD .3 .6 .9 1.2 1.5 Money (trillions of dollars) In ...

A: Given; MS= Money supply MD= Money demand

Q: 7. Good X is produced in a competitive market using input A. Explain what would happen to the supply...

A: Note:  Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...

Q: During World War I, the price in the U.K. increased by more than that in the U.S. Following Churchil...

A: Gold Standard - The gold standard is the currency measurement system where by the value of the curre...

Q: Graph Input Tool 100 Market for Rum 90 I Quantity (Bottles) Supply 48 80 Demand Price (Dollars per b...

A: Since you have asked multiple questions and according to policy we can solve only 1 question and for...

Q: Which of the following statements is false?

A: given the following statements is false is  

Q: Labor productivity on the ABC assembly line was 22 units per hour in 2008. In 2009, labor productivi...

A: Labor Productivity is the output per labor. Labor Productivity in 2008 : 22 units. Labor Productivit...

Q: South Africa has a GDP of $10 billion (measured in U.S. dollars) and a population of 45 million. Ecu...

A: South Africa has a GDP of $10 billion (measured in U.S. dollars) and a population of 45 million. GDP...

Q: How much money would you pay in interest if you borrowed $18,000 for one year at simple 20% per year...

A: P = 18,000 r = 0.2 t = 1 Therefore, A = P(1 + rt) A = 18000 [1 + (0.2 x 1)] A = 18000 [1 + 0.2] A = ...

Q: An open market sale leads to : prices and the money supply. interest rates the exchange rate O A. fa...

A: Open market operations are purchases and sells of government securities by central banks in order to...

Q: Because of the adverse selection problem,   Question 3 options:   a)  lenders will write debt con...

A: In a market, adverse selection refers to one of the causes of market failure due to unequal informat...

Q: The wholesale price of milk (px) is $1/gallon, and the wage (pL) is $12/hour. Suppose that farms can...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit thequestion and sp...

Q: You are interested in the effect of a factory being inspected on whether it reduces its pollution ou...

A: Introduction This effect of fussy regression can be solved by Cartesian method: number of reported v...

Q: £/unit 100 90 SRMC 80 70 60 50 40 30 SRAC 20 D= AR 10 MR 10 20 30 50 60 70 100 Units 40 80 90 Figure...

A: The profit maximization condition are as follows: 1- MR= MC ( Marginal revenue is equal to marginal ...

Q: Which of the following is the best example of a moral hazard problem?   Question 25 options:   a) ...

A: When talking about moral hazard, it is the situation that arises after a transaction is made between...

Q: In the IS/LM model, the exogenous variables include     government spending, income and interest r...

A: Exogenous variables are those variables whose values are given to find the value of endogenous varia...

Q: 14. What is the future worth of P 150,000.00 invested at 11% simple interest for 45 months?

A: Simple interest refers to the money which is paid on principle. The interest can be earned in money ...

Q: What is the positive and negative of globalization? What will happen if the global

A: To find : Positive and negative of globalization. 

Q: Compare and contrast Classical, Keynesian and Monetarists approaches to monetary policy.

A: To compare classical, Keynesian and monetarists approach to monetary policy. 

Q: Firms promote the activities of the global market by promoting trends of offering the same products ...

A: Answer 2. Totalitarianism is a type of government and political system in which all opposition parti...

Q: When households and firms start selling off their bonds, which of the following will be the result? ...

A: In the bonds market, market price is determined by the demand and supply of bonds, and the relations...

Q: Microeconomic Question QUESTION ONE Using appropriate diagram, illustrate the short run and long r...

A:   Meaning of Microeconomics: The term macroeconomics refers to that situation under which the econom...

Q: The Federal Reserve has announced that they are cutting interest rates for the third time this year....

A: When the Federal Reserve cuts rates, this refers to a decision by the FOMC  to reduce the federal fu...

Q: The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a...

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for yo...

Q: If the government wants to increase employment, what should it do among the following?    a. decreas...

A: The Reserve ratio refers to the proportion of the deposited money (bank's liability), which a commer...

Q: Predict how each of the following events will raise or lower the equilibrium wage and quantity of lu...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: State the causes of inflation

A: The concept that depicts a general rise in the value of goods and services within a period of time i...

Q: Suppose that the employment rate is 55.0% and unemployment rate is 5.0%. What is the participation r...

A: The participation rate is the percentage of the total population employed and actively looking for e...

Q: 4. The total effect of a price change of a commodity is А. Sustitution effect plus price effect B. O...

A: "Correct option is B- substitution effect plus income effect."

Q: Problem #1 Competitive Equilibrium Find the competitive equilibrium if types are not observable for ...

A: Given θ₁ = 3, θ₂ = 6, θ3= 9 lottery · P(θ = θ₁) = 1/3, P (θ = θ₂ ) = 1 / 3 , P(θ = θ) = 1/3 Reservat...

Q: In Solow's model of economic growth, suppose that s represents the savings rate, z represents total ...

A: Economic Growth refers to the increase or rise in the national income or GDP of a country over a per...

Q: The unemployment rates in the US, Germany, Italy and France have been closely aligned over the last ...

A: European law tends to include more labour protections, making it more difficult for businesses to fi...

Q: Instead, suppose the government taxes bus passes. The following graph shows the annual supply and de...

A: When the tax is imposed on the good, the quantity produced is less than the efficient quantity so it...

Q: Use a graph to illustrate the quantity of pollution that would be emitted (a) after a corrective tax...

A: Suppose Demand for pollution is P=30-Q, If a tax of $10 per unit is set, the optimal amount of pollu...

Q: In the Keynesian theory of liquidity preference     money supply is related to interest rates    ...

A:  Keynesian theory of liquidity preferences: According to Keynes, the money demand and money supply ...

Q: _. As a result, the private market will likely A light house that warns ships about nearby rocks is ...

A: A non-excludable and non-rivalrous good is referred to as a public good. Users cannot be denied acce...

Q: How do the purpose and structure of the executive and legislative branches of governments affect the...

A: To find : Purpose and structure of executive and legislature branches of government affects power of...

Q: abor productivity on the ABC assembly line was 22 units per hour in 2008. In 2009, labor productivit...

A: Given: Labor productivity: 2008=22 units per hour 2009=21 units per hour

Q: If you invest $2000 at 12% annual interest rate, compounded weekly, how much would you have after 5 ...

A: Given, P = Principal Amount = $2000 r = Interest Rate = 12% = 0.12 t = Time = 5 years Compounded Per...

Q: Which of the following statements best describes the aggregate supply curve? A) The aggregate suppl...

A: Aggregate Supply curve is an upward sloping curve. 

Q: The long-run aggregate supply curve is... A) Upward sloping at the potential GDP level B) Vertical a...

A: Aggregate supply curve shows combinations of price and quantity of output supplied in the economy.

Q: Suppose the structural model of Bangladesh is given below: Consumption function, C 100 + 0.80Ya Inve...

A: Goods market equilibrium occurs at a point where aggregate demand equates total income i.e. Y=C+I+GY...

Q: You are the marketing manager for Bilbo Industries. You have been asked to estimate the demand for a...

A: Chain ratio method: It is a simple way to estimate the market demand or sales potential or the size ...