Up till now, we provide 9999 solutions for all subjects which include Mathematics, Finance, Accounting, Management, Engineering, Computer Science, Natural Sciences, Medicine Science, etc.

avatar

P9A4ON

Economics

Discussion Questions   In what ways are national income statistics useful? [L07.1] Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? What problem is posed by any comparison over time of the market values of various total outputs? How is this problem resolved? [L07.1] Which of the following goods are usually intermediate goods and which are usually final goods: running shoes, cotton fibres, watches, textbooks, coal, sunscreen lotion, lumber? [L07.1] Why do economists include only final goods when measuring GDP for a particular year? Why don't they include the value of the stocks and bonds bought and sold? Why don't they include the value of the used furniture bought and sold? [L07.1] Explain why an economy's output, in essence, is also its income. [L07.1] Provide three examples of each: consumer durable goods, consumer nondurable goods, and services. [L07.2] Why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion during 2022. How would this affect the size of gross investment and gross domestic product in 2022? Explain. [L07.2] What is the difference between gross investment and net investment? [L07.2] Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. Explain: "Though net investment can be positive, negative, or zero, it is impossible for gross investment to be less than zero." [L07.2] Define net exports. How are net exports determined? Explain how net exports might be a negative amount. [L07.2]   Discussion Questions   What are the four phases of the business cycle? How long do business cycles last? How do seasonal variations and long run trends complicate measurement of the business cycle? Why does the business cycle affect output and employment in capital goods industries and consumer durable goods industries more severely than in industries producing consumer nondurables? [L09.1] How can a financial crisis lead to a recession? How, in general, can a major new invention lead to an expansion? [L09.1] How is the labour force defined and who measures it? How is the unemployment rate calculated? Does an increase in the unemployment rate necessarily mean a decline in the size of the labour force? Why is a positive unemployment rate more than zero percent—fully compatible with full employment? [L09.2] How do unemployment rates vary by gender, occupation, and education? Why does the average length of time people are unemployed rise during a recession? [L09.2] Why is it difficult to distinguish between frictional, structural, seasonal, and cyclical unemployment? Why is unemployment an economic problem? What are the consequences of a negative GDP gap? What are the noneconomic effects of unemployment? [L09.2] Even though Canada has an employment insurance program that provides income for those who are out of work, why should we worry about unemployment? [L09.2] What is the Consumer Price Index (CPI) and how is it determined each month? How does Statistics Canada calculate the rate of inflation from one year to the next? How does inflation affect the purchasing power of a dollar? How does it explain difference between nominal and real interest rates? How does deflation differ from inflation? [L09.3]

1 Solutions

See Answer
avatar

RUH1JT

Economics

5. Inputs and outputs Iyana's Pizzas is a takeout-only pizza parlor servicing the college campus of Urbana that specializes in vegan pizzas. Iyana's small shop has barely enough room for customers to stand and wait, let alone the four pizza ovens necessary to keep up with the hungry student customers. Iyana signed a lease renting both the four ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Iyana is unable to change the store's number of pizza ovens in the short run. However, Iyana does foce a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Iyana contacts the staff to communicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are pizza ovens are inputs. The following table presents Iyana's daily production schedule. However, Iyana does face a decision regarding the number of employees to schedule on a weekly basis. Every Sunday, Iyana contacts the staff to cornmunicate the amount of workers needed on each day of the upcoming week. In the short run, the store employees are inputs, and pizza ovens are inputs. The following ta fixed s Iyana's daily production schedule. The following table presents Iyana's daily production schedule. Fill in the blanks to complete the Marginal Product of Labor column for each worker. \begin{tabular}{lll} $\begin{array}{l}\text { Labor } \\ \text { (Number of workers) }\end{array}$ & $\begin{array}{l}\text { Output } \\ \text { (Pizzas) }\end{array}$ & $\begin{array}{l}\text { Marginal Product of Labor } \\ \text { (Pizzas) }\end{array}$ \\ \hline 0 & 0 \\ 1 & 60 \\ 2 & 100 \\ 3 & 130 \\ 4 & 150 \\ 5 & 160 \end{tabular} On the following graph, plot Iyana's production function using the green points (triangle symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Hint: Be sure to plot the first point at $(0,0)$. Suppose that Iyana's only variable cost is labor. Assume that Iyana faces daily fixed costs of $\$ 20$ and pays all workers the same daily wage of $\$ 30$. Use the orange points (square symbol) to plot Iyana's total cost curve on the following graph using the quantities from the preceding tabic. (?) True or False: The shape of the production function reflects the law of increasing marginal returns. True False

1 Solutions

See Answer
avatar

ZNGPYU

Economics

Consider the weekly market for gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply ( $S=M C)$ and demand (D) curves in the weekly market for gyros. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. Competitive Market Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obtain exclusive rights to sell gyros in the neighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly. Assume that this change does not affect demand and that the marginal cost curve of the new monopoly corresponds exactly to the supply curve from the previous graph. The following graph reflects this new set of assumptions, and shows the demand (D), marginal revenue (MR), and marginal cost (MC) curves for the monopoly vendor. Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity of a monopolist. Monopoly (?) Monopoly Outcome Deadweight Loss Consider the welfare effects that result from the industry operating as a competitive market versus a monopoly. On the monopoly graph, use the black points (plus symbol) to shade the area that represents the loss of welfare, or deadweight loss, caused by a monopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody. Deadweight loss occurs when a market is controlled by a monopoly because the resulting equilibrium is different from the (efficient) competitive outcome. In the following table, enter the price and quantity that would arise in a competitive market; then enter the profit-maximizing price and quantity that would be chosen if a monopolist controlled this market. Given the summary table of the two different market structures, you can infer that, in general, the price is lower under a and the quantity is lower under a

1 Solutions

See Answer
avatar

DWGLK0

Economics

Use the data in SCHOOL93_98 to answer the following questions. Use the command xtset schid year to set the cross section and time dimensions. (i) How many schools are there. Does each school have a record for each of the six years? Verify that lavgrexpp is missing for all schools in $1993 .$ (ii) Create a selection indicator, s , that is equal to one if and only if you have nonmissing data on math4, lavgrexpp, lunch, and lenrol. Next, define a variable tobs to be the number of complete time periods per school. How many schools have all given years of available data (noting that 1993 is not available for any school when we use lavgrexpp )? Drop all schools with tobs =0 . (iii) Use random effects to estimate a model relating math4 to lavgrexpp, lunch, and lenrol. Be sure to include a full set of year dummies. What is the estimated effect of school spending on math4? What is its cluster-robust t statistic? (iv) Now estimate the model from part (iii) by fixed effects. What is the estimated spending effect and its robust confidence interval? How does it compare to the RE estimate from part (iii)? (v) Create the time averages of all of the explanatory variables in the RE/FE estimation, including the time dummies. You need to use the selection indicator constructed in part (ii). Verify that when you add these and estimate the equation by RE you obtain the FE estimates on the time-varying explanatory variables. What happens if you drop the time averages for $y 95, y 96, y 97$ , and y 98 ? (vi) Is the random effects estimator rejected in favor of fixed effects? Explain. Use the data in SCHOOL93_98 to answer the following questions. Use the command xtset schid year to set the cross section and time dimensions. (i) How many schools are there. Does each school have a record for each of the six years? Verify that lavgrexpp is missing for all schools in 1993. (ii) Create a selection indicator, $s$, that is equal to one if and only if you have nonmissing data on math4, lavgrexpp, lunch, and lenrol. Next, define a variable tobs to be the number of complete time periods per school. How many schools have all given years of available data (noting that 1993 is not available for any school when we use lavgrexpp)? Drop all schools with tobs $=0$. (iii) Use random effects to estimate a model relating math4 to lavgrexpp, lunch, and lenrol. Be sure to include a full set of year dummies. What is the estimated effect of school spending on math4? What is its cluster-robust $t$ statistic? (iv) Now estimate the model from part (iii) by fixed effects. What is the estimated spending effect and its robust confidence interval? How does it compare to the RE estimate from part (iii)? (v) Create the time averages of all of the explanatory variables in the RE/FE estimation, including the time dummies. You need to use the selection indicator constructed in part (ii). Verify that when you add these and estimate the equation by RE you obtain the FE estimates on the time-varying explanatory variables. What happens if you drop the time averages for $y 95, y 96, y 97$, and $y 98$ ? (vi) Is the random effects estimator rejected in favor of fixed effects? Explain.

1 Solutions

See Answer
avatar

GUKGFX

Economics

please show a visual. I have to place the colored block on the last graph. The following graph plots Brian's monthly demand curve (blue line) for acai bowls. The point denoted by A gives a point along his monthly demand curve. The market price of acai bowls is $\$ 2.25$ per bowi, given by the horizontal black line. Brian's Monthly Demand From the previous graph, you can tell that Brian is willing to pay $s$ for his 6 th acal bowl each week. Because he has to pay only $\$ 2.25$ per bowl, the consumer surplus he gains from the 6 th acai bowl is Suppose the price of acai bowls were to fall to $\$ 1.50$ per bowl. At this lower price, Brian would receive a consumer surplus of from the 6th acai bowi he buys: The following graph plots the monthly market demand curve (blue line) for acat bowis in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price ( $\rho$ ) of acal bowis is $\$ 2.25$ per bowl. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $\$ 1.50$ per bowl. Use the purple point (diamond symbol) to shade the area representing consumer surpius when the price (P) of acai bowls is $\$ 2.25$ per bowl. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $\$ 1.50$ per bowl. Small Economy's Monthly Demand Initial Consumer Surplus $(P=\$ 2.25)$ Additional Consumer Surplus $(P=\$ 1.50)$

1 Solutions

See Answer
avatar

CSDQRJ

Economics

which of the following give the real value of the variable in which of the following give a nominal value of a variable 3. The classical dichotomy and the neutrality of money The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Sofia divides all of her income between spending on digital movie rentals and lattes. In 2012, she earned an hourly wage of $\$ 28.00$, the price of a digital movie rental was $\$ 7.00$, and the price of a latte was $\$ 4.00$. Which of the following give the real value of a variable? Check all that apply. Sofia's wage is 7 lattes per hour in 2012 . Sofia's wage is $\$ 28.00$ per hour in 2012. The price of a digital movie rental is $\$ 7.00$ in 2012. Which of the following glve the nominal value of a variable? Check all that apply. Sofia's wage is $\$ 28,00$ per hour in 2012 . Sofia's woge is 4 digital movie rentais per hour in 2012 . The price of a latte is 0.57 digital movie rentals in 2012 . Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Sofla's wage has risen to $\$ 56.00$ per hour. The price of a digital movie rental is $\$ 14.00$ and the price of a latte is $\$ 8.00$. In 2017, the relative price of a digital movie rental is 1.75 lattes $V$. digitnil movie rental was $\$ 7.00$, and the price of a latte was $\$ 4.00$. Which of the following give the real value of a variable? Check all that appiy. Sofia's wage is 7 lattes per hour in 2012. Sofia's wage is $\$ 28.00$ per hour in 2012. The price of a digital movie rental is $\$ 7.00$ in 2012 . Which of the following give the nominal value of a variable? Check all that opply: Soha's wage is $\$ 28.00$ per hour in 2012 . Sofa's wage is 4 digital move rentals per hour in 2012. The price of a latte is 0,57 digital movie rentals in 2012 . Suppose that the Fed sharply increases the money supply between 2012 and 2017. In 2017, Sofia's wage has risen to 556.00 per hour. The price of a digital movie rental is $\$ 14,00$ and the price of a latte is $\$ 8.00$. In 2017, the relative price of a digital movie rental is 1.75 lattes $\nabla$. Between 2012 and 2017, the nominal value of Sofa's wage Increases $\nabla$, and the real value of her wage remains the same $\boldsymbol{\nabla}$. Monetary nevtrality is the proposition that a change in the money supply affects nominal variables and does not affect $\nabla$ real variabies.

1 Solutions

See Answer