utility functions U(c1, c2) = c1C2, where c1 is consumption this year and c2 is consumption next year. Rats eat 10% of any grain that is stored for a year. How much grain could the villagers consume next year if they consume 1,000 bushels of grain
Q: The revenues from an emissions-charge approach to controlling climate change would be unusually larg...
A: Revenue: The term revenue explains the money generated or earned by an individual. To make money, th...
Q: 4. Inflation is associated with several costs, as well as some benefits, to economies. a) State one ...
A: The economies around the world have various entities, which are in the form of households, firms, in...
Q: In the following scenarios, explain if demand would be affected or supply. Which curve(s) shift(s) (...
A: Here, all the given information explains different situations in the laptop market due to changes in...
Q: Draw a market diagram showing how the equilibrium point changes if buyers income increase
A: Let initial supply and demand curve is as follows
Q: 'Your company is comparing three projects that have risks associated with them. Based on the data in...
A: EUAW stands for Equivalent Uniform Annual worth, Annual Worth (AW) Analysis is defined as the equiva...
Q: Fill in the blanks: Number of cookies Total Utility Marginal Utility 1 30 30 50 3 60 65 2.
A: Marginal refers to additional. Utility is the satisfaction derived by consumption of a good or serv...
Q: (a) Calculate the amount deposited 1 year ago to have $1000 now at an interest rate of 5% per year. ...
A: (a) Total amount accumulated $1000 is equal to the actual deposit plus the interest gain. If X is th...
Q: The Kansas City Chiefs football team just won the Superbowl and an ESPN.com poll showed that 74% of ...
A: Demand curve shows the inverse relationship between price and quantity demanded of a good. There are...
Q: Assuming that a country has a trade deficit of $50 billion, which of the following is true: A. The ...
A: During a given time period when the imports of a country are greater than exports of the country , t...
Q: Question 6: (a) What is 'Business Cycle'? (b) What is the definition of: leading indicator, coincide...
A: (a) Business Cycle It is also called trade cycle or economic cycle, it describes the different stage...
Q: . A consumer has ·100 hours of time to allocate to either labor or leisure ·A real wage w=50 ·Divid...
A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the exa...
Q: The key idea of the Arzhagi and Henderson paper of “Networking off Madison Avenue” is . . . A. Madis...
A: This chapter is related to rent chapter. Economic rent is an amount of money earned that exceeds tha...
Q: Find the value after 20 years in pesos of an annuity of P20,000 payable annually for 8 years, with t...
A: Annuity = 20,000 n = 8 years First payment at the end of 2nd year, this means we can sat at the star...
Q: Pls hep with this homework
A: The answer is - d. FDI plays a key role in influencing the composition of export, including the tec...
Q: Which of the following is the best definition of the opportunity cost of a decision? The sum of all ...
A: The concept of opportunity cost does not always work since comparing two choices quantitatively can ...
Q: Pls help with below homework.
A: Supply Shock:- A supply shock is an unforeseen situation that disrupts the supply of a items, culmi...
Q: Consider a country with a non-renewable resource. There are 150 units of the resource. Suppose there...
A: Total Amount of resource = 150 Discount rate = 10% Demand function : p = 200 - x (where x...
Q: ASSIGNMENT Opportunity cost is all about making choices and how you adequately and effectively mana...
A: Introduction: Managerial economics is described as the discipline of economics concerned with the ap...
Q: In a small economy two goods are produced: meat and potatoes. Assume the following values: Year Pric...
A: Here we calculate the nominal GDP , Real GDP and GDP deflator by using the given information , so th...
Q: 4. Calculate the utilisation rate at Cutey Barber Salon in 2021. 5. Describe two techniques that can...
A: Salin business is evergreen business need skilled labour to perform the work . Many factors influenc...
Q: What are the implications of the welfare on consumers, producers and the society?
A: The study of how the distribution of resources and commodities impacts social welfare is known as we...
Q: Explain some problems the government must solve, as a result of the effects of a price ceiling. Exp...
A: Price ceiling : It is a method of price control where the price of a good is prevented from rising a...
Q: Refer to the table below for a very simple economy producing three goods: movies, burgers and bikes....
A: GDP is the sum of total market value of goods and services which is produced domestically during in ...
Q: Ranells is a company that offers one-fifth or more ownership in a cruise ship for a price beginning ...
A: The answer is - Option 3. High involvement purchase that involves extended problem solving.
Q: The Brazilian real expected to depreciate against the dollar in the next month by 1%. The standard d...
A: The exchange rate is the value of one country's currency concerning the other country's currency. Ev...
Q: There are currently 60 perfectly competitive firms producing output q. The cost function of each fir...
A: (9) P = MC is a supply curve for an individual perfectly competitive firm in the short run. C=10 + ...
Q: What is the value of n with interest 10% that makes the present value equal to O 100 100 loee Given ...
A: PV = 1000 Annuity Amount = 100
Q: The figure below shows one of Josie's indifference curves between peaches and cream-the indifference...
A: Josie's income=$32Price of peaches=$4Price of cream=$4Now,Maximum peaches Josie can purchase=324=8In...
Q: 9
A: USCMA is a trade agreement between the named parties the United States, Mexico and Canada. It has re...
Q: Why is trade a much more complex thing than official measures?
A: Trade is the exchange of goods and services between trading parties in order to make money . And if ...
Q: Show, using a curved PPF, what would happen if there was a terrible natural disaster that destroyed ...
A: In the event that natural resources are obliterated, expecting it influences all areas of the econom...
Q: Tom wants to avoid any accidents on the work floor of his factory. If an accident does occur, it wou...
A: Given; Cost of damages= $500000 Initial probability of accident= 20% Decrease in occurring= 10% Equi...
Q: (1) For demand function Q, = a-bP and supply function Q, = dP-c, using Cramer's rule %3D determine e...
A: Disclaimer :- as you posted multiple questions we are supposed to solve the first one only as per gu...
Q: What do economists mean when they say Social Security and Medicare are “pay-as-you-go” plans? What a...
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts for you ...
Q: Q20 In Canada we have government intervention in the dairy market in the form of quotas on milk p...
A: GIVEN 1) Consider the above given that
Q: Bob's farm harvests corns worth 106 thousand dollars (and nothing else). In each year, there is a 24...
A: utility is used to model worth or value. Its usage has evolved significantly over time.. ''Expected ...
Q: Define and explain the importance of two of the following concepts. Mutual Fund Financial Services H...
A: Investments in stocks, bonds, money market instruments, and other assets are made possible through t...
Q: A.Explain why newly posted job vacancies are not filled instantly when there is unem ployment?
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...
Q: What Is The Purpose Of A First Screen Analysis, And What Are Its Main Components in Entrepreneurship...
A: First screen analysis refers to the first outlook judgment pass to consider the feasibility of the b...
Q: Figure 3.20 depicts the market for blueberries in the country of Roni. a. Suppose that in an attempt...
A: In economics, total revenue refers to a company's total sales, which are calculated by dividing the ...
Q: ings by businesses 12 percent Private investment 18 percent Net taxes paid 15 percent Government spe...
A: * ANSWER :-
Q: ay, you invest Php 100,000 into a fund that pays 25% interest compounded annually. Three years later...
A: The answer is given below
Q: he elasticity from point A to point B seems different from the elasticity from point B to point A. F...
A: Pt A: price =$4, quantity=120 Pt B: price=$6, quantity=80 ------------------------------------------...
Q: are needs that we learn during our lifetime. Multiple Choice Ethics Ideals Desires Wants Values
A: Individuals tend to have certain needs and want in order to live a life they tend to desire or wish ...
Q: conomists defined economic recession as more than 2 consecutive quarters in which there is a decline...
A: Economic recession is referred to the fall or decline in the GDP in the comparison of last year, qu...
Q: Consider the following table that gives the monthly per capita consumption expenditure of 10 househo...
A: Option A is correct Poverty Gap is the aggregate measure of depth of poverty below the poverty lin...
Q: * 6. U.S. growth: On page 52, the United States between 1870 and 1929 was slightly lower than 2,0% t...
A: Answer is given below
Q: draw a general demand curve and label it D. Then shift the curve to the left or the right depending ...
A: The demand curve of a commodity represents the quantity demanded of the commodity at every possible ...
Q: Which concept is NOT illustrated by the production possibilities frontier? A. tradeoffs B. effi...
A: The production possibility frontier (PPF) is a bend that represents the potential amounts that can b...
Q: If GDP is currently $300 and the growth rate is 5 percent, how many years will it take for GDP to re...
A:
Step by step
Solved in 2 steps
- A water company owns water pipes that burst often due to poor maintenance. The company can invest GHS m in the maintenance of the pipes. More maintenance means less water loss through bursts and fewer compensation payments to residents due to flooding of their properties. Assume that the value of lost water is 1/m so that more maintenance reduces the amount of loss. Assume that the value of damage to properties where the pipes are routed is 3/m , so that more maintenance decreases the amount of damage to properties. (i.) What is the socially optimal level of maintenance, m? What is the associated value of lost water and property damage? (Note: Minimize the total cost function) ( ii). What level of m is chosen when pipes that burst run through land owned by the government (the company pays nothing for damages even though there is still some damage associated with pipe bursts)? What is the new value for property damage? What is the deadweight loss?5. Suppose that the government must undertake an irreversible policy decision regarding the extent of air pollution regulation. The government is making this decision in a situation of uncertainty. however. In particular, there is some probability p that the benefits will remain the same as they are this year for all future years, but there is some probability 1-p that benefits will be less in all future years. If we take into consideration the multiperiod aspects, should we err on the side of overregulation or underregulation, compared to what we would do in a single-period choice?Edwina, a commodities broker, has acquired an option tobuy 1,000 oz of gold at $50/oz. If she takes the option and ifCongress relaxes import quotas, she can sell the gold for$80/oz. If she takes the option and Congress does not relaxthe import quotas, however, the company will lose $10/oz. Edwina believes that there is a 50% chance that the governmentwill relax the quota. She also has the option of waiting untilCongress decides whether to relax the import quota. If sheadopts this strategy, however, there is a 70% chance that someother broker will have already taken the option.a If Edwina is risk-neutral, what should she do? b If Edwina’s utility function for a change x in her as-set position is given by u(x) (10,000 x)1/2, what should she do?
- INV 1 5aiv Suppose that you have the following utility function: U=E(r) – ½ Aσ2 and A=3 Suppose that you have $10 million to invest for one year and you want to invest that money into ETFs tracking the S&P 500 (US) and S&P/TSX 60 (Canada) index, which are often used as proxies for the US and Canadian stock markets, respectively, and the Canadian one-year T-bill. Assume that the interest rate of the one-year T-bill is 0.35% per annum. You have found two ETFs that you are interested in. From a set of their historical data between 2001 and 2019, you have estimated the annual expected returns, standard deviations, and covariance as follows: ETFUS : E(r)= 0.070584 standard deviation = 0.173687 ETFCDA : E(r)= 0.073763 standard deviation = 0.16816 Covariance between ETFUS and ETFCDA = 0.02397 What is the standard deviation for ETFCDA?4. In a paper published in 2020, Robson and co-author Saul Schwartz, a professor in the School of Public Policy at Carleton, found that about 11% of Canadians don't file their tax returns.In our ECON224 class of 35 students: (a) What is the probability that at least 6 students won’t file their tax returns this year? (b) What is the probability that more than 30 students will file their tax returns this year? (c) What is the probability that the number of students in our ECON224 class who won’t file a tax return this year will be greater than 2 but less than 7? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.SOLVE 9 and 10.
- 14. 15.Example is given: A petrol pump is supplied with petrol once a day. If its daily volume of sales (X) in thousands of litres is distributed by: f(x) = 5 (1-x), Osxs1, %3D what must be the capacity of its tank in order that the probability that its supply will be exhausted in a given day shall be 0.01 ?A farmer believes there is an equal chance that the next growing season will be abnormallyrainy. His expected return function has the formExpected return = 0.5lnYNR + 0.5lnYRwhere YNR and YR represent the farmer’s income in the states of “normal rain”and “rainy,” respectively.Suppose the farmer must choose between two crops that promise the following incomeprospects:Crop YNR YRMaize $14,000 $5,000Cotton $9,500 $7,500a) Which of the crops will he plant?b) Suppose the farmer can plant half his field with each crop. Would he choose to do so?Explain your result.c) What mix of Maize and Cotton would provide maximum expected utility to this farmer?d) Would Maize crop insurance, available to farmers who grow only Maize, which costs$2,000 and pays off $4,000 in the event of a rainy growing season, cause this farmer tochange what he plants?
- Suppose Don's wants to invest to build a condominium tower in Moscow. If he can get his friend Vlad to buy one of the units, he figures the investment will be a success (because all Vlad's rich friends will want to buy one too) and his income will be $1,000,000 this year. However, there is a 60% chance that Vlad will not be interested. In that case, the investment will fail and Don's income will be only $100,000. Don's utility function is U=In(income) The British insurance company Lloyds of London will insure the investment and they will charge him a premium of $600,000. Graph the risk situation described above. Note the expected utility. What would be the actuarially fair premium for a policy that would pay Don $900,000 in the event the investment fails? а. b С. What is Don's Risk Premium? d. Will Don buy the policy from Lloyd's of London? Explain why or why not?If Cov(X,Y) = 639, then what is Cov(19X,10Y)? Suppose Cov(X,Y) = 43. What is Cov(0.23X, 0.33Y)? Suppose Cov(X,Y) = 872. What is Cov(0.99X, 0.86Y)?The project manager of Good Public Relations gatheredthe data shown in Table 7.15 for a new advertisingcampaign.a. How long is the project likely to take? b. What is the probability that the project will take more than38 weeks?c. Consider the path A–E–G–H–J. What is the probability thatthis path will exceed 38 weeks?