The number of retired workers rises as the baby boom generation ages. This will result in O lower discretionary spending O higher mandatory spending O lower mandatory spending O higher discretionary spending
Q: xplain how changing the price elasticity of demand from elastic to inelastic affects the consumer's…
A: The percentage change in quantity demanded divided by the percentage change in price is the price…
Q: If C=0.8Y, I-bar=260, G-bar=200, TR-bar=150, T=0.2Y, X-bar=320 and M=0.1Y, the equilibrium level of…
A: Aggregate expenditure function AE = C + I + G + X -M => AE = 0.8Yd + 260 + 200 + 320 - 0.1Y =>…
Q: A challenger presidential candidate vows to cutentitlement spending by 20 percent in the first…
A: It is unlikely the candidate could achieve this reduction in entitlement spending by 20 percent.
Q: Due to good weather, there is an increase in the demand for the good. The new demand equation is Qd…
A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…
Q: Pls help with below homework. Calculate the value of getting 1 000 000 EURO today and an…
A: *Hi there , as per our guidelines we are only allowed to solved 3 sub parts at a time . Kindly…
Q: How will demand for a necessity behave with rise in income? (a) Initially the demand rises and then…
A: # Necessities usually includes those itmes which we use in our day to day life. These goods or…
Q: The the consumer-facing the budget line P1x1+p2x2=M where p1 and p2 price is given as good 1 and 2…
A: The consumer would result in the utility maximisation which would be constrained by the total money…
Q: Given the demand and supply function for a product as Q = 1500 - 3P (Demand) Q = 1100 + 2P…
A: Equilibrium is the oont where price and quantity is determined through market mechanism and…
Q: 3. Consider the utility function U(1, y) = min{r, 2y} Find (a) the Marshallian demand functions for…
A: The Marshallian demand function is the ordinary demand function, a function of income and prices of…
Q: True/false, no need to explain. (a) There is no perfect way to aggregate individual preferences to a…
A: Meaning of Externalities: The term externality refers to the situation where the cost is incurred…
Q: According to studeis undertaken by the U.S. Department of Agriculture, the price elasticity of…
A: Because of increase in price of cigarettes,consumption of cigarettes would decrease. Because price…
Q: INT: Sketch the supply and demand equations. e to good weather, there is an increase in the demand…
A: *Answer:
Q: How would a utility-maximizing household respond to a decrease in lump- sum taxes (T) if both…
A: Normal goods are those whose demand increases with increase in income and their demand falls with a…
Q: According to studies undertaken by the U.S. Department of Agriculture, the price elasticity of…
A: Price Elasticity refers to the degrees of responsiveness of change in quantity demand with respect…
Q: Consider a society with 4 members: Justin, Andrew, Jagmeet and Elizabeth. The following table…
A: The utility refers to the units of satisfaction received to a consumer after making purchase of a…
Q: Explain three basic sources of deviationsfrom PPP.
A: Purchasing power parity implies that money in one country can purchase equal quantity of goods in…
Q: . Let u(x,y) = x^(1/3)*y^(2/3), p_x = 5, p_y = 6, and I = 90. Solve the constrained utility…
A: In utility maximization problem, the individual tries to choose an optimal combination of…
Q: David N. gets $3 per week as an allowance to spend any way he pleases. Because he likes only peanut…
A: Let X = peanut butter, and Y = jelly. Given, Px=$0.05, Py=$0.1 (a) Since David makes his sandwich…
Q: The incidence of a tax is determined by which side of the market is less sensitive to a change in…
A: Tax incidence refers to the split of a tax burden across stakeholders such as buyers and sellers,…
Q: In the budget presented by the Government, far reaching tax rebates are provided to all classes of…
A: if the tax reductions have changed the consumption patterns it means that the goods are elastic.
Q: 1. Rachel eats eggs and toast for breakfast and insists on having 3 pieces of toast for every two…
A: The term "utility" in economics refers to the experience of well-being that arises from using a…
Q: 2
A: The interest rate is representative of the price of current consumption The substitution effect…
Q: 3. If U(z, y) = 1yl/2 and the budget is M pir1 +P2T2: a. What is Walrasian Demand? What does it…
A: Answer a. A consumer's Marshallian demand function is a more technical elaboration of the basic…
Q: Suppose the government eliminates the income tax and replaces it with a consumption tax. With a…
A: After imposition of consumption tax the demand curve will shift leftward. Because tax will reduce…
Q: 1. The consume less of the good with a relatively higher price and more of the good with a relativ…
A: Option B ie Substitution Effect When price of good rises, a consumer substitutes it for the cheaper…
Q: e the concept of Price Elasticity of Demand to explain why the public policy recommendation of…
A: The elasticity of demand measures the responsiveness of quantity demanded changes as a result of…
Q: (f) What is the slope of the 2018 budget constraint? What is the slope of the 2019 budget constraint…
A: The slope of budget constraint: Slope = -PH/PF For 2018 budget constraint: 150H+50F=1500 Slope2018…
Q: Suppose Shabna has a fixed income and she can consume only two goods and they are bread and butter.…
A: Complimentary goods are those that can get consumed together. Bread and butter are complementary…
Q: Can you please answer these questions? I recommend the typed question is answered over the picture…
A: demand equation is Qd = 190 – 2P. Quantity Supply = -15+P Suppose that the government decides to…
Q: QUESTION 5 The expenditure function is given by e(p,u) = (4p1P2u)/(p, + pa} The Hisksian demand for…
A: Sheppard's Lemma states that the derivative of the expenditure function is hicksian demand function.…
Q: Using the concept of substitutes and complements,A. explain with the help of a diagram how…
A: Substitute goods: It refers to a good which can be used in place of each other. When the price of…
Q: Suppose you expect to earn $10 this year and $10 next year. Each dollar you earn this year can be…
A: Note: Since you have posted a question with multiple subparts, we will solve the first three…
Q: 2. Suppose there are two goods in the economy: Food (F) and Composite good (Y), with Pp = 1 and Py =…
A: We are going to find marginal rate of substitution to answer this question.
Q: b. How does the increase in the tax rate affect the optimal choice of consumption (in the current…
A: There are 2 possible cases for the given situation where increase in tax rate affect the optimal…
Q: 1 Francesca buys pencils and erasers at 10$ and 9$ per amount. Francesca has an income of 90$. There…
A: Tax refers to the money collected by the government from the firms and individuals for spending on…
Q: C= 250+ 0.8Y I= 150 G=300 TR= 100 NX=100 t= 0.25 Q) Find the equilibrium level of income Q)…
A: The point at which the aggregate demand and aggregate supply are equal to each other at that point…
Q: The government intends to impose taxes on alcohol. Its demand has a fixed elasticity -1 and the…
A:
Q: Answer the following questions for the price-demand equation. p+0.002x = 40 (A) Express the demand x…
A: Price elasticity of demand is defined as the percentage change in the quantity demanded for a good…
Q: If the government wants to increase the tax revenue they collect from sellers, then it should O Tax…
A: Tax revenue is calculated by multiplying the per unit tax with the quantity supplied/ demanded at…
Q: 1. An individual has a utility function, U(q,42) = /91 q2). %3D (Mathematical assistance: x = : (a)…
A: We have given utility function U = (q1q2)1/2 where p1 and p2 are prices of q1 and q2.
Q: M = $160 budgeted to be spend on these two goods and the prices of Apples and Ice Cream are p1 =$2,…
A: 1st & 2nd blank For optimum => 3x1 = x2 ---------------1 And, Budget line => 2x1+x2 = 160…
Q: . Oman started imposing a 15% tax on cigarettes. As a result, product’s price went up, and the sales…
A: Demand is a part of economics study that helps in identifying the quantity of goods needed by the…
Q: Q4. Create your own question for profit maximization. Provide the price of products K & L and the…
A: All firms produce and sell output with the intention of maximizing profit. Profits are the…
Q: A consumer buys a combination of goods A and B. The marginal utility and price of good A is MUA =…
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- JosephmigratedtoCanadafromGhana5yearsago.Hecurrently works in sales but is considering quitting work for two years to earn an MBA degree. His current job pays $40,000 per year (after taxes), but he could earn $55,000 per year (after taxes) if he had an MBA. Tuition is $10,000 per year, and the cost of an apartment near campus is equal to the $10,000 he is currently paying. His discount rate is 6 percent per year. He just turned 48 and plans to retire when he turns 60, whether or not he earns his MBA degree. Based on this information, should he go for an MBA degree? Explain carefully with appropriate calculations.Pls help with below homework-) Is it true that universal guarantedd basic income is the best solution for poeverty and income ineqality ? Please explain in details.The breakeven level of income is the O Level of income above which a person loses all welfare benefits. O Lowest level of income at which in-kind benefits are no longer necessary. O Amount of income a person must have to reach the poverty line. O Level of income at which an individual household begins to have some discretionary income.
- Suppose that a consumer cannot vary hours of work as he or she chooses. In particular, he or she must choose between working g hours and not working at all, whereg> 0. Suppose that dividend income is zero, and that the consumer pays a tax Tif he or she works, and receives a benefit b when not working, interpreted as an unemployment insurance payment. a Click the icon to view information about the initial model used here. Consumption, C W29-T w,q-T Leisure, I h-g BE a. If the wage rate increases, how does this affect the consumer's hours of work? What does this have to say about what we would observe about the behaviour of actual consumers when wages change? After the wage rate increases, an individual consumer who originally did not work at all V After the wage rate increases, an individual consumer who originally worked q hours V This suggests that if an economy includes many consumers with many different sets preferences (all satisfying the assumptions of the initial model) and the…The government announces programs designed to reduce the share of income going to the top quintile from 60% to 20%. You predict that the most likely result is that: O mean household income will fall, because the highest income earners will earn less and work less. median household income will rise, because some of the 40% of redistributed income will be transferred to the third quintile. after redistribution, each quintile will receive 20% of total wealth. O the lowest quintile will receive the 40% taken from the top quintile and switch places.← → X VD C Calculate the income tax for a single person who has $81,396 of taxable income using the table below which shows the tax brackets for 2016 for single workers. TODE EQ Taxable Income $0 to $9,375 $9,376 to $37,550 $37,551 to $90,850 $90,851 to $189,500 $189,501 to $411,650 $411,651 to $414,500 $414,501 or more Answer to the nearest penny. Tax Rate 12% of amount over $0 $945 plus 16% of the amount over $9,375 $5,278 plus 26% of the amount over $37,550 $18,526 plus 29% of the amount over $90,850 $46,592 plus 34% of the amount over $189,500 $119,622 plus 36% of the amount over $411,650 $120,135 plus 40.2% of the amount over $414,500 hp
- When recording devices were first invented morethan 100 years ago, musicians could suddenly supplytheir music to large audiences at low cost. How doyou suppose this development affected the income ofthe best musicians? How do you suppose it affectedthe income of average musicians?Dr. X, an assistant professor at a large state university, is trying to decide how to allocate the 50 hours a week she spends working among the various activities expected of an assistant professor. The professor wants to maximize her raise next year and the table shows estimates of how time spent in each activity will contribute to her raise: Hours Per Week Total Amount of Raise From: Research 14 15 16 17 18 19 Teaching $200 400 550 675 20 21 775 850 900 University Service $400 450 490 905 525 555 570 580 585 $200 250 295 365 370 Given the information in the table, if she decides that she will work 54 hours a week instead, how should she allocate her time? Multiple Choice 18 hours research, 18 hours teaching, 18 hours service 21 hours research, 19 hours teaching, 14 hours service 20 hours research, 17 hours teaching, 17 hours service 20 hours research, 18 hours teaching, 16 hours service 320 340 355QUESTION 9 Dube (2019) comprehensively reviewed studies that estimated the impact of minimum wage employment. Answer the next few questions using Chapter 4 of Dube's report One way to assess the validity of a counterfactual parallel trend is by testing the effects of the treatment on outcomes unrelated to the treatment. O True O False QUESTION 10 Minimum Wage Employment Elasticity is defined as: - %A This measures the responsiveness of to a change in QUESTION 11 Use Dube (2019) Ch. 4 to answer the following: The range of estimates for minimum wage employment elasticity (MWE) were derived from elasticity estimates from studies The median MWE was around
- C= 250+ 0.8Y I= 150 G=300 TR= 100 NX=100 t= 0.25 Q) Find the equilibrium level of income Q) suppose, Beacuse of the current COVID 19 situation C falls to 50, MPS falls to. 05, I falls to 10 G falls to 100 and NX falls to 10.how much TR should the government increase to have the samd Level of equilibrium income as in part i)?Explain very briefly what you understand from income effect and substitutioneffects of change in income tax rates3. In the upcoming year, the income from your current job will be $50,000. There is a 0.5 chance that you will keep your job and eam this income, and 0.2 chance that you will get a rise and earn 75,000. However, there is 0.3 chance that you will be laid off, putting you out of work for a time and forcing you to accept a lower paying job. In this case, your income is $25.000. The expected value of your income is thus $47,500. a) If your utility function has the formula 5001 - 0.0002/, determine the risk premium associated with this lottery. b) Provide an interpretation of the risk premium in this particular example.
