QUESTION 1 Diminishing marginal returns: a. are consistent with increasing returns to scale Ob. imply decreasing returns to scale c. are not necessarily inconsistent with increasing returns to scale d. occur at all combinations of input usage e. occur only for labor

Q: Classical economists think prices and quantities respond to supply and demand and the economy…

A: Economists refers to those social scientists who concentrate on the production, distribution, and…

Q: The table gives the demand schedule and the supply schedule for milkshakes. What is the equilibrium…

A: The demand schedule shows the demand for a particular product in the market. On the other side, the…

Q: 1. Below is presidential candidates' proposals and their discussions. a. Candidate BJ proposed an…

A: Private Savings (S): S = Y - C - TPublic Savings (T - G): Public savings are equal to government…

Q: Chris Evans Party Don't Party Stalk 3,4 1,1 Paparazzo Don't Stalk 4,2 1,2 Suppose a sequential game…

A: Many aspects of modern civilization are influenced by game theory, from pricing techniques and…

Q: In this market, the equilibrium wage is s Suppose the mayor of Combopolis Introduces a legal minimum…

A: The labour market is a high priority in both micro and macroeconomics because it has the possibility…

Q: 5. Capital investment in less-developed countries Aa Aa The following graph shows the production…

A: The process of transforming raw elements such as labor and unprocessed commodities into services and…

Q: Because consumers value product variety, A. no two goods of the same type will have equal prices. B.…

A: The monopolistic competition represents a market structure where firms have some control over…

Q: Graph the an indifference curve with x₁ is a normal good and x₂ is a normal good until x₂=2 when x₂…

A: The neutral goods is the one whose demand level remains independent of their income level. It means…

Q: In the video on "Fed Transparency", economist Diane Swonk maintains that greater Fed transparency…

A: The concept of Fed Transparency refers to the provision of relevant information by the Federal…

Q: Consider a palletizer at a bottling plant that has a first cost of $150,000, operating and…

A: The concept of "future equivalent cost" typically refers to the calculation of the present value of…

Q: This question tests your understanding of Application 1 in this chapter: New Zealand's tax on light…

A: The equimarginal rule states that consumers will allocate their income so that the marginal utility…

Q: contracts Montevideo signs per month, is 6 contracts. This is down 3 contracts from the figure last…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: Suppose an individual consumes goods and y and has income I. The prices are pa and p, respectively.…

A: Utility refers to the measure of satisfaction or happiness that an individual derives from consuming…

Q: 3. Gains from trade Suppose there exist two imaginary countries, Everglades and Yosemite. Their…

A: Opportunity cost is the next best alternative.Opportunity cost shows the forgone units of one good…

Q: At price P2, the quantity traded is 1 the consumer surplus is area Maximum total surplus in this…

A: Consumer surplus is the benefit a buyer gets by buying a product at market price which is less than…

Q: Fred takes out a loan for $1300 at an interest rate of 5% for a period of 5 years.  Calculate the…

A: Interest, in the context of finance and economics, refers to the cost of borrowing money or the…

Q: 8. Economic fluctuations 1 The following graph shows the economy in long-run equilibrium at the…

A: Government expenditure is spent on public infrastructure such as health care, education, defense and…

Q: Price (dollars) ying graph shows the short-run demand and cost situation for a price searcher in a…

A: Profit maximisation is a process that businesses go through to make sure the best levels of output…

Q: Technological inefficiency: O A. implies the existence of economic inequity. B. exists when more…

A: A technological inefficiency is described as an inefficiency in the production process due to lack…

Q: Draw a demand and supply graph, label all axes, and the equilibrium price and quantity. Once you…

A: A point of balance between the forces of demand (DD) and supply (SS) in the market is termed market…

Q: Two Manufacturers supply food to a large cafeteria. Manufacturer A supplies 40% of the soup served…

A: Bayes theorem can be used to find the reverse probability. If a certain event occurs under different…

Q: Smaller firms generally enjoy economies of scale as they expand because: a. they are able to spread…

A: Economy of scale refers to the cost advantage achieved by the firm by increasing the production of…

Q: If a monopolist faces an inverse demand curve, p(y) = 100-2y and has constant marginal costs of $32…

A: If a monopolist faces an inverse demand curve, p(y) = 100 - 2y and has constant marginal costs of…

Q: Using the data below, what is the slope coefficient from a regression of Quantity on Price? It is…

A: The slope coefficient of regression, often denoted as "β" or "b" depicts the change in the dependent…

Q: Joaquin's marginal utility from an additional slice of pumpkin pie is 16 utils and his marginal…

A: Utility refers to the total satisfation or happiness that a consumer get from the consumption of a…

Q: Capital Goods 0 A D. B E Consumer Goods Refer to the diagram. Other things equal, this economy will…

A: A production possibility curve (PPC), also known as a production possibility frontier (PPF), is a…

Q: als On the following graph, use the black point (cross symbol) to indicate the point on the demand…

A: The markets are the places that assist the economies in the allocation, and distribution of…

Q: Draw a graph that indicates what happens in the market for hybrid cars when the price of gasoline…

A: At the equilibrium price, the quantity demanded is equal to the quantity supplied.Equilibrium occurs…

Q: Question 2 Suppose a closed economy has an aggregate consumption function given by C = 300 +0.50Yd…

A: National income(Y) means the total of all the commodities manufactured by the people during a…

Q: Read the Staples and Office Depot 2015 Case , then answer the questions below. 1. How would you…

A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…

Q: a.  Explain how comparative advantage and opportunity cost affect trade. b. In your opinion, state…

A: The exchange of goods or services between individuals, firms, or nations is termed trade.  It is an…

Q: A company that produces cleaning products is considering a proposal to begin production of a new…

A: Total revenue is the product of price and quantity. Total cost is the cost of producing all the…

Q: Suppose that Ireland and Liechtenstein both produce ale and wheat. Ireland's opportunity cost of…

A: Comparative advantage is the ability to produce goods and services at a lower opportunity cost than…

Q: 1. Use the following graph shown to fill in the table that follows Consumer surplus Producer surplus…

A: At the equilibrium price, the quantity demanded is equal to the quantity supplied.Equilibrium occurs…

Q: Suppose the given functions describe the market for artisanal single-batch maple syrup. If climate…

A: The overall economic benefit derived from a transaction or market exchange is termed total surplus…

Q: Suppose marginal cost and average cost are given by the following expressions: MC(x)=3x1/2,…

A: ***Since the student has posted multiple questions, the expert is required to solve only the first…

Q: Use the following general linear supply function: Qs 40+ 6P-8P, +10F where Q, is the quantity…

A: Qs = 40 + 6P - 8Pi + 10F --------> Supply equation. Qd = 700 - 6P ------------> Demand…

Q: to grow by 6 percent per year. Using a mean industry PE ratio of 12 and the expected annual growth…

A: The price-earnings (P/E) model, additionally regarded as the price-to-earnings ratio, is a monetary…

Q: Luisa cannot tell the difference between rice and wheat and spends all her food budget of $48/wk on…

A: Let's Construct a price-consumption curve based on the information you provided about Luisa's wheat…

Q: QUESTION 11 uppose that a new customer opens a checking account and a saving account, placing…

A: An asset is something of value that is owned or controlled by an individual, business, or entity.…

Q: QUESTION 2 The Central Bank's narrowest definition of the money supply is M3. L. MO. M2. M1. ССССС

A: Money supply in the economy refers to the quantity of money circulating in the economy. The money…

Q: Classical economists think prices and quantities respond to supply and demand and the economy…

A: Keynesian economics believes that the total spending by the economy drives the aggregate demand in…

Q: 6.1 What is the difference between the sums of an annuity due and an ordinary annuity for the…

A: An annuity is a contract that provides a series of regular, periodic payments to an individual or…

Q: Let G stand for government spending, T for taxes, I for private invest Complete the following…

A: A) using a current account deficit to finance domestic consumption may result in a burden for a…

Q: About how much of Germany's GDP comes from international trade? 66% O 25% O 33% 90%

A: The trade-to-GDP ratio is calculated as follows:According to the World Bank, Germany's exports in…

Q: Which of the following is true about the market for a good with positive externalities of production…

A: Marginal Social Cost (MSC) describes the additional cost imposed on society as a whole when one more…

Q: In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the…

A: The Simple Deposit Expansion Model, often referred to as the money multiplier model, is a simplified…

Q: Assuming we are in a market with a shortage of a good, what will sellers do to make the market…

A: Just as a price more than the equilibrium price will cause a surplus, a price less than the…

Q: The table below shows the values for several different components of GDP. Billions of Dollars $ 280…

A: National Income accounting is a system to track and measure a country's economic activity over a…

Q: 1. Tom (T) and Jerry (J) have identical incomes I. Their preferences can be described by the utility…

A: Utility refers to the satisfaction or happiness that a consumer get from the consumption of goods or…

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.