I would go with marginal utility per dollar as it can be used to guide the consumer to allocate is dollars of income to maximize utility. Although, truth be said, whenever I think of "marginal utility", I presume it means "marginal utility per dollar"
Regression analysis is a statistical procedure used to find the relationship between a dependent variable and one or more independent variables. Multiple regression analysis requires there be two or more independent variables. Under a logit regression, the dependent variable i...
I dont get it either unless you can assume that the central bank views a 10% interest rate as "da bomb" and will always take action to keep the interest rate at 10%. In which case, you could solve these problems with simple algebra and plug in 0.1 for i.
I dont understand why depreciation is in the equation. I think of depreciation as the degradation of a physical asset over time. Depreciation affects interest rates in a round-a-bout way. That said, is it possible that 0.10 is the depreciation rate and 1/E-1 is the foreign int...
a) correct. b) the "imports" part of the equation is .25(Y-8). So the MPCF is .25 Alone, I dont think there is enough information to determine the MPCH -- Unless you can use the overall consumption function from a). If so, the MPCH=.75-.25 = .50 c)correct d) D=C+I+G+...
Try this for starters. http://en.wikipedia.org/wiki/Trade_bloc
While I am a bit familiar with the Cournot model, I do not know what you mean by "strategies 1 to 5" The basic Cournot model that I know assumes that each player assumes the positions of the other players are fixed, and so each player maximizes accordingly. This iter...
This is the easy part of your question. Draw initial world-market supply and demand curves for tobacco; and another for domestic food items. If the US subsidises foreign tobacco farmers, foreign tobacco farmers produce more, causing the price for tobacco to fall, causing US pr...
1) I think True. A decrease in foreign interest should cause US investors to invest internationally. (Assuming flexible exchange rates). 2) I think False, same reasoning as in #1 3) Hummmm, I initiall thought false; of course investors care about the real interest rates. Howev...
Trade is win-win; both trading partners are better off. This is true for domestic as well as international. Unless you are a pure Marxist, some the gains from trade must trickle down to workers.
There are a whole host of reasons why the daily market price of a stock will fluctuate around a stock's "proper" or "intrinsic" price. First, is the definition or determination of a stock's "proper" price. A stock's price is not based ...
An EXCEL spreadsheet is very helpful for solving these type of problems. write out spaces for 7 numbers. 1) the Median is 16, so put 16 in the 4-spot. 2) the sum of the first two spots (two lowest) is 18 -- the mode. Since you need 3 odd numbers, try 7 and 11 in the spots 1 an...
National output, aka GNP, is the sum of C+I+G+(X-M) (X-M is net exports). So, for each scenario, decide how one (or more) of the above factors would change. A fall in interest rates should spur investments (I), an appreciation of the home currency should make imports cheaper a...
do the algebra. Team X is +3, then -5, ten -2, for a net -4, So.....
You probably have a demand function or table, which shows price (P) and the quantity demanded (Q). Total revenue is simply P*Q. You also probably have some supply function or table, which shows the average and/or marginal costs of producing each level of Q. Average cost*Q = to...
a) If Y goes up by a dollar, how much would C go up by? MPC is: (change-C)/(change-Y) b) disposable income is Y-T, which can either be consumed or saved. Calculate C when Y-T=100 c) what if taxes suddenly changed? d)if we taxed everybody by $100 to fund the transfer program an...
Draw standard supply and demand graphs for both markets. In the beachfront market, supply is inelastic; so make the supply curve nearly vertical. In the auto market, supply is elastic, so make the supply curve nearly horizontal. Now shift the demand curves in each market. You ...
ok, the party of 4 can sit on either the left side or the right side -- 2 possibilities. Once it chooses a side, there are 8*7*6*5=1680 ways they could be seated on that side of the table. There are 8*7=56 ways for the party of two to sit on the other side. With these two par...
With respect to the convergence hypothesis: http://econc10.bu.edu/economic_systems/Lecture_notes/Introduction/intro_types_convergence_lg.htm with respect to S=I, GNP is the value of everything we produce GNP=C+I. (Ignore government expenditures or net exports for now). GNP is ...
Computers, faster telecommunications, and the reduction of several trade barriers (NAFTA and GAPP) to name 3.
Think about why similar goods cost different amounts. -- Is there some level of service or services involved? -- Is location a factor? (e.g., one seller is next to a major highway or railroad) -- Is financing typically involved? -- What about legal protections? (e.g., is one s...
Sorry, international macro is not my area. I too am lost on this one.
economics Need help immediatly
I would go with b) if it causes an increase in nominal wages BY THE SAME PERCENTAGE AMOUNT.
Take a shot, what do you think? This is an easy question, just calculate the means of for each of the three vehicles.
BUSINESS AND SOCIETY
Take a shot, what do you think?
first off, international macro is not my area, That said.... 1) you have given 50$=100L (in jeans). So, under PPP, 0.5$=1L (so true). (Note: in the real world, the exchange rate is closer to 1$=.5L) 2) I think True. If the euro depreciates against the $, then money investors w...
Take a shot, what do you think. Hint. Draw a supply and demand graph for loanable funds. The price of loanable funds is the interest rate. Now, with each of your situations, decide if the supply curve would shift or the demand curve (or neither).
Take a shot, what do you think? Hint: As I understand, the initial endowments of persons 1 and 2 are both utility maximizing. For person 1, he will maximize when x1=y1. For person 2, he is indifferent between getting an extra x2 or a y2. Hint 2: On question 2, I dont believe a...
No, see my post below.
Huh? Producer surplus is represented by the area above supply and below price. Consumer surplus in represented by the area below demand and above price. Under what conditions can this be true?
First, lets break apart the Utility function. We know Aneeta consumes 15 x and 10 y. Her utility is therefore min(4*15, 2*15+10) = min(60, 40) = 40. So, for here relevant consumption pattern, her utility function is simply U=2x+y. Utility will be maximized when MUx/MUy = Px/Py...
Take a shot, what do you think?
something is not right, either your M is too high or your SS is too low
tough question. Here is a link that summarizes the myriad of types of auctions. http://en.wikipedia.org/wiki/Auction For a) my knee jerk reaction was a common value auction (but I could be pursuaded otherwise). For b) definately not an English auction. The FCC should assume al...
Take a shot, what do you think? Hint: draw supply and demand graphs, compare a graphs where demand is highly elastic (almost flat) vs highly inelastic (almost vertical) Hint: question has nothing do do with the incomes of consumers; eliminate C.
Take a shot, what do you think? Hint: economies of scale imply a declining average cost curve
Take a shot, what do you think? Hint: if advertising is used to discurage entry, then definately advertise before new firms actually enter. Hint2: think about the capital investment needed for a new day-care center?
R+D is, in general, expensive and the returns are very uncertain. One purpose of R+D is to lower production costs. However, knowledge is very difficult to contain, despite the best patent laws. So, it is difficult for a firm to capture the total economic benefits from R+D. Tha...
a) you could say the nightclub had zero or negitive economic profits. b) The rate of return on capital in the nightclub business is 10%
Let me make a correction, we can approximate MR from an elasticity by the following formula MR=P*(1+1/e), where e is the elasticity. So, we have, MC=125=MR=P*(1 - 1/1.8) for full timers. Solve for P. I get 281.25 Repeat for part-timers. (I guess I would assume the school could...
Im not sure I understand your question. In general, you want to set Marginal cost = Marginal revenue. You are given marginal cost. I dont think you can derive a marginal revenue from just a known demand elasticity. Further, its not clear from your question whether the school c...
As MC=MR, the monopolist is at its optimal position in the short run. However, as average total cost are above $4, the firm is losing money. So, long run, either the firm shuts down, or figures out a way to cut costs.
I think false. The exchange rate generally equalizes purchasing power. That said, let me give an example. Say the exchange rate is $2=L1. (L for pounds). Now say a burger in the U.S. costs $2 and a similar burger in the U.K. costs L1. Here purchasing powers are the same. But t...
Right. I was a bit confuse by your terminology. I missed the word "real" While the exchange rate may not be unity (one-to-one), the REAL exchange rate would be unity.
Curious, all the recent econ questions have been about exchange rates. I think false. See my post to "..." above.
Take a shot, what do you think? Hint. The government spending multiplier in this example is 1/MPS = 1/.4 = 2.5. The taxation multiplier is the government multiplier minus one = 1.5
Take a shot, what do you think. Hint, the government spending multiplier is 1/mps = 1/.33333 = 3.
econ (economyst please help)
I am mucho confused by your given: A "basket" costs $120 in the UK. Given the current exchange rate of $/L=2, does that mean the basket in the UK costs L60. Your question hinges on this interpretation. (Note that I'm using L for British Pounds). a) I agree b) Ass...
False I found the following power point on the web which explains. (Broken Link Removed)
False. exporters love when the home currency depreciates and hate when it appreciates. Take Ms Sue's example. Say a firm has a good which it sells for $1. Initially, europeans could take 1 euro, exchange for $1, and buy the good. Today, a european could take .64 euros, exc...
False. Think it through. You have $/euros = 3/2 which means $3 = 2E. Also, you have 2E=1L. Ergo, $3=1L.
Peter Pundit is full of S. a) First, what is causing the super-increase in productivity, and why is that reason unique to the EU? Unless there is a learning divide, information leading to productivity increases is very difficult to keep secret. Second, even if the EU is becomi...
For convenience, let c= $15 of consumption. (Dont worry, you would get the same answer if c=$1 of consumption) So, your equations are: Max(U)=2*ln(c)+ln(L) subject to: c+L=120 To get one L,the person must give up one c. So the price of L in terms of C is 1. Soooooo, we want th...
Ta Da. Yes.
The price in NY is lower than Tokyo. An investor could buy euros in NY, wire the euros to Tokyo, then sell the euros in Tokyo, making a gross profit (before expenses) of $.05 per euro. But such an arbitrager is increasing the demand for euros in NY and increasing the supply of...
Somewhat of an open ended question. A direct piece of information: "does the business have competitors"? A bit indirect, but, "are there barriers to entry in the firm's industry or product line". Take it from here
Probability. NEED HELP!!!
The number of possible ways to deal 5 cards from a standard deck is 52-choose-5 = 52!/5!(52-5)! where ! means factorial. This will be the denominator in your probablity calcuator. Now for the numerator. There are 13 possible choices for your 4-of-a-kind (A,2,3,..Q,K). That tak...
Think it through. 1oz = $35 and $2=L1, so 1oz = L17.5 Now then, if 1oz = $40 and 1oz remains at L17.5 then $40 = L17.5 or 40/17.5 = L1 or $2.286 = L1
Think it through. $1.25 = E1 30-day forward. So to buy 10 million E 30 days from now, to hedge it will cost $12.5 million, profit=$0.5 million b) absolutely c) This call option says that 30 days from now, you have the option of buying euros at $1.27. If the spot market is abov...
I need HELP bad! Macroeconomics!
1) Nominal gains are 220-200 = $20, with a 50% tax rate, tax=$10 Real gains are 220 - (1.05*200) = $10, tax on real gains, if real gains is the base, is $5 2) Nominal gains are 400-200=$200, real gains are 400-1.5*200 = $100. Tax on nominal gains is $100. So after tax real cap...
Think it through. What do you think. Take a shot.
see my response above
Sorry. See my respose to Sarah above.
See my response to Sally above.
Sally had a nominal capital gain of $200. With a 50% tax rate, she has a $100 liability. I believe the inflation rate is a red herring in this problem
a) could only work if the Home country was extremely large, relative to the sum of all the other countries. Otherwise you would have a knife-edge problem; either all the other countries would hold the Home contries currency or none of them would. For more info, google "Wa...
I presume you gave the probability of the biased die, where there is a 33.33% chance of rolling a 1 and a 13.33% chance of rolling a 2,3,4,5 or 6. For a normal die, the probability of rolling any given number is 1/6 = 16.67%. There is one way to roll a 2, both dies are 1. so, ...
Sounds right to me.
I too have never heard the term "the economy is isolating:
As you may already know, economies e.g., go through "business" cycles, which results in boom periods and bust periods. In booms, unemployment is low, but there are inflationary pressures. In busts, inflation is low, but unemployment is high. Stabilization policy is d...
Wow. thats really an open ended question. I'm not really sure what to suggest. However, if you have some ideas, I or others will be happy to critique.
Based the information given there are: 960 A-R 640 A-S 192 B-R 608 B-S 48 C-R 552 C-S so, c) = 552/3000 di) = (1.-552/3000) * (1.-551/2999) dii) = 1.-(di) diii) = (552/3000) * (48/2999) div) = 1. - ( (1200/3000)*(1800/2999))
Boston has an absolute advantage in producing both red socks and white socks. For red, a worker in Boston can produce 3 for every 2 a Chicago worker can (3>2). For white, a Boston worker can produce 3 for every 1 a Chicago worker can (3>1). Chicago has a comparitive adva...
use algebra and plug in known values. You have MC=MR=(1-1/e)*P where Mc=MR=27 and P=45. Solve: 27=(1-1/e)*45 27/45 = (1-1/e) -.4 = -1/e e = 2.5 -- elastic If P were higher, then e would have to be lower (more inelastic)
see my response to Tiffany above.
Widespread use of computers and computer technology. Improved communication technologies. Improved health-related technologies. More open trade, etc.
You could short sell a portion of one of the currencies. You could use a portion of the currencies to buy another currency or another asset.
Do you mean America - USA, if so, go to the economic report of the president. http://www.gpoaccess.gov/eop/download.html If you mean latin America, I too had lots of trouble. I found plenty of sites that likely had the information. However, the sites were either pay-for or had...
Data Management, Math
in week 1 you have a 1 in 10 chance to win, or 10%. In week 2 you have a 2 in 20 chance to win or 10% .... In week 5 you have a 5 in 50 chance to win, or 10%. a) The probability that you always lose is .9^5 = .59049 -- so the probability that you win at least once is 1-.59049 ...
Take a shot. what do you think. Hint, S=I, where I is composed of intended or autonomous investment Ia and unintended investment Ib (e.g., change in inventories). Hint 2. Multiplier is 1/MPS
Think it through. GDP per capita is simply GDP/Pop. Let a be the growth in real GDP, and let b be the growth in the population. Then the growth in per captita real GDP is (a*GDP)/(b*Pop). Take in from here.
I dont know what your "Grapher tool" is. That said, if the economy has zero inflation and 5% unemployment for several years, that sounds like equilibrium to me. Any attempts to move to an alternative position is, very likely, doomed to fail.
Hummm. As you can see, graphing in Jiskha doesnt really work. That said, producer surplus is represented by the area below price and above supply. If this is some triangle, use the geometry formula for calculating the area of a triangle.
Very creative way to learn to use EXCEL for typical financial calculations. This is more of a "how to use" EXCEL problem than a finance problem. And would be quite difficult to to here in Jishka. Repost if you have a specific question. Hint: put your SUN in A1 In B1 ...
1a) this is just algebra. Plug in the known values for Y, Pc, and Pf. Then set Qd=Qs and solve for Pb 1b) Raise price by 1%, calculate the %change in Q. Elasticity is %changeQ/%changeP 1c) demand curve shifts out. 1d) raise price of chicken by 1%, then calculate the %change in...
They are nearly all applicable. You and I will likely work more with higher wage rates (micro). A country's quantity of labor supplied will increase with higher wage rates (macro). I receive some consumer surplus when I buy jelly beans (micro). The consumers of a country c...
I presume that the numbers mean some sort of production in a given period (e.g., "Ben-cones 8" means the number of cones Ben can produce in a time period) So then, the opportunity cost for Ben to produce 8 cones is 2 ice cream, or 4 cones=1 ice cream. For jerry 1.5 c...
I would pick B.
A good programming forum???
Here is a link to the forum I use. Although, I would not recommend it as a basic programming homework help site; most of the blogs are high-level intensive stuff. http://softwarecommunity.intel.com/isn/Community/en-us/Forums/
I'd say about all of them.
Here is a link to an explanation of the Laffer curve. Google Laffer Curve for more info. http://en.wikipedia.org/wiki/Laffer_curve
Take a shot, what do you think? Hint: does an author have marginal costs? Does a publisher have marginal costs?
This is the notation used for combinations. In particular, its top-choose-bottom. In your example, you have 15 items (top) and you want to determine the number of ways of picking 15 of them (bottom). BTW, the answer in this example is 1.
1a(i) there are two O's, so P=(2/8) 1b(i) 4+ points are received with F1,F2,O1,O2,T1, and T2, so P=(6/8) 1b(ii) first toss O1 and O2. 3+ points are receive with F1,F2,T1,T2 and E. so P=(5/6) In 2, put your information into a spreadsheet or table, and take it from there
Take a shot, what do you think? Hint, (T,T,T,T)
Take a shot, what do you think? Hint: no.
See my later post
What do you mean? Do you mean "what alternatives are there to Acxiom" e.g, who are Acxiom's competitors. Or do you mean, "what alternative business markets could Acxiom get into?" Or something else?
I believe you have supply and demand equations; Qd on the left, Qs on the right. Normally, we put P on the y-axis, and Q on the x-axis. So rewrite each equation in terms of P. 800 - 100P = Qd is transformed into P=8-Qd/100. Do the same for Supply. As for a graph, each equation...