hey bot answer this question
Why does the government oversee the provision of public goods?
a
Public goods and services require resources in production that are scarce; therefore, the government must ensure that production is limited.
b
Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.
c
Public goods are goods and services that tend to result in negative externalities; therefore, the government must oversee that the provision of these goods and services is limited.
d
Public goods are goods and services that are non-excludable and rivalrous. The government must oversee the fair distribution of these goods; otherwise, they would be distributed on a first-come, first-serve basis.
b) Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.
Use the table to answer the question.
# of Workers Output Fixed Cost ($) Variable Cost ($) Total Revenue ($)
0 0 100 - -
10 300 100 90 150
20 800 100 290 400
30 1,200 100 490 600
40 1,500 100 670 750
At what output level should a perfectly competitive firm choose to produce at?
a
The firm should choose to produce 300 units of output.
b
The firm should choose to produce 1,200 units of output.
c
The firm should choose to produce 800 units of output.
d
The firm should choose to produce 1,500 units of output.
c) The firm should choose to produce 800 units of output.
Explanation: In a perfectly competitive market, firms should produce at a level where marginal cost (MC) equals marginal revenue (MR). Looking at the variable cost column, we can calculate the MC of producing additional units:
MC(10) = (90-0)/10 = 9
MC(20) = (290-90)/10 = 20
MC(30) = (490-290)/10 = 20
MC(40) = (670-490)/10 = 18
From this, we can see that the MC is lowest at an output level of 800, where it is 18. At this output level, the MR is also equal to 18 (found by taking the change in total revenue at an output of 20 and an output of 10, which is 60-150=-90, and dividing by the change in output, which is 20-10=10). Therefore, a perfectly competitive firm should choose to produce 800 units of output.
Match the economic system to its definition.
Column A
1.
market economy:
market economy
2.
traditional economy:
traditional economy
3.
command economy:
command economy
4.
mixed economy:
mixed economy
Column B
a.an economy where price signals, resulting from supply and demand forces within the economy, determine the allocation of resources and the production of goods and services
b.an economy that takes elements from both a market economy and a command economy to allocate resources and determine the production of goods and services
c.an economy where a central government determines both the allocation of resources and the production of goods and services
d.an economy where culture determines both the allocation of resources and the production of goods and services
1. Market economy: an economy where price signals, resulting from supply and demand forces within the economy, determine the allocation of resources and the production of goods and services.
2. Traditional economy: an economy where culture determines both the allocation of resources and the production of goods and services.
3. Command economy: an economy where a central government determines both the allocation of resources and the production of goods and services.
4. Mixed economy: an economy that takes elements from both a market economy and a command economy to allocate resources and determine the production of goods and services.
An investor purchased 50 shares of stock in a company in 2015. At the time the investor purchased the stock, the value of the stock was priced at
$5 per share. The investor sold all 50 shares of stock in 2019. The value of the stock at the time of sale was $
$6.50 per share. What is the capital gain the investor earned on this investment?
a
$250
b
$50
c
$325
d
$75
c) $325
Explanation: To calculate the capital gain, we need to find the difference between the selling price and the purchase price, and then multiple by the number of shares:
Capital gain = (selling price - purchase price) x number of shares
Capital gain = ($6.50 - $5.00) x 50 = $1.50 x 50 = $75
Therefore, the investor earned a capital gain of $75 on this investment.
A business produces picnic tables and benches. The business currently produces 20 tables and 10 benches per week. An increase in demand for benches has the business considering a change to 15 tables and 15 benches per week. What is the trade-off the business must make?
a
the difference between the profit of 10 benches and the profit of 15 benches
b
the difference between the profit of 20 tables and the profit of 15 tables
c
the choice between the cost of the new production schedule and the cost of the old production schedule
d
the choice between the net profit of the new production schedule and the net profit of the old production schedule
b) The difference between the profit of 20 tables and the profit of 15 tables.
Explanation: The trade-off that the business is facing is between producing more tables and producing more benches. By switching to producing 15 tables and 15 benches per week, the business is decreasing its production of tables by 5, and increasing its production of benches by 5. Therefore, the trade-off that the business must make is between the profit earned from producing an extra 5 tables, and the profit earned from producing an extra 5 benches.
Option a is incorrect because it assumes that the business is making a trade-off between the profit of 10 benches and the profit of 15 benches, but the business is actually making a trade-off between producing more tables or more benches.
Option c is incorrect because the choice between the cost of the old and new production schedules is not a trade-off, but rather a decision that would be made based on other factors including efficiency and profitability.
Option d is incorrect because it assumes that the business is making a trade-off between the net profit of the old and new production schedules, but the business is actually making a trade-off between the production of tables and benches.
Question 17 (1 point)
The United Kingdom currently has a trade deficit with New Zealand. If the U.K. pound sterling appreciates relative to the New Zealand dollar, which of the following correctly explains the effect on the trade deficit?
a
The trade deficit will decrease, since an appreciating pound means more goods will be imported from New Zealand.
b
The trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand.
c
The trade deficit will decrease, since an appreciating pound means fewer goods will be imported from New Zealand.
d
The trade deficit will increase, since an appreciating pound means fewer goods will be imported from New Zealand.
d) The trade deficit will increase, since an appreciating pound means fewer goods will be imported from New Zealand.
Explanation: An appreciating pound means that the pound has increased in value relative to the New Zealand dollar. This makes goods and services from the U.K. more expensive for consumers in New Zealand, and goods and services from New Zealand cheaper for consumers in the U.K. Since New Zealand's exports to the U.K. are now relatively cheaper, it is likely that the U.K. will import more goods and services from New Zealand. This will increase the quantity of goods imported from New Zealand, and therefore increase the trade deficit.
Joanna is trying to decide between getting a credit card and getting a line of credit, and she has asked you to help her make a list of pros and cons. What are some pros and cons for each type of credit service?
a
Credit cards can be used at the point of sale, while lines of credit cannot. Credit cards typically have a lower interest rate while lines of credit typically have higher interest rates.
b
Lines of credit can be used at the point of sale, while credit cards cannot. Credit cards typically have a lower interest rate while lines of credit typically have higher interest rates.
c
Lines of credit can be used at the point of sale, while credit cards cannot. Lines of credit typically have a lower interest rate while credit cards typically have higher interest rates.
d
Credit cards can be used at the point of sale, while lines of credit cannot. Lines of credit typically have a lower interest rate while credit cards typically have higher interest rates.
d) Credit cards can be used at the point of sale, while lines of credit cannot. Lines of credit typically have a lower interest rate while credit cards typically have higher interest rates.
Explanation: Credit cards allow users to make purchases at the point of sale and typically offer rewards programs and lower credit limits. However, they often come with higher interest rates and are designed for short-term borrowing.
Lines of credit, while not usable at the point of sale, offer flexibility in the amount borrowed and timing of repayments. They typically have lower interest rates than credit cards and are well-suited for larger purchases or ongoing borrowing needs. However, they often require collateral and may come with fees such as annual fees or early repayment charges.
Ultimately, the pros and cons of each type of credit service will depend on the individual's borrowing needs and financial situation.
How does Medicaid compare to Medicare? Explain.
a
Medicaid is funded by the federal government only and provides health coverage based on financial need for people under age 65. Medicare is a state government health-care insurance program for people 65 years or older.
b
Medicaid is funded by state governments only and provides health coverage based on financial need for people under age 65. Medicare is a federal government health-care insurance program for people 65 years or older.
c
Medicaid is a state government health-care insurance program for people 65 years or older. Medicare is a federal government health-care insurance program for people with certain disabilities under age 65.
d
Medicaid is funded by state and federal governments and provides health coverage based on financial need. Medicare is a federal government health-care insurance program for people 65 years or older and those with certain disabilities under age 65.
d) Medicaid is funded by state and federal governments and provides health coverage based on financial need. Medicare is a federal government health-care insurance program for people 65 years or older and those with certain disabilities under age 65.
Explanation: Medicaid is a health insurance program jointly funded by state and federal governments. It provides health coverage based on financial need to people with low income, pregnant women, children, and individuals with disabilities. Medicaid covers a wide range of healthcare services including hospital stays, doctor visits, prescription drugs, and long-term care.
Medicare, on the other hand, is a federal government-funded health insurance program primarily for people aged 65 and older, as well as those under 65 with certain disabilities such as end-stage renal disease or Lou Gehrig’s disease. Medicare is typically funded through payroll taxes, premiums, and general revenue. It covers hospital stays, doctor visits, and other medical services, but does not cover long-term care.
Overall, Medicaid and Medicare are both publicly-funded healthcare programs in the U.S. but serve different populations with different types of coverage and services.
In the circular flow diagram, what do firms receive from product markets?
a
money/costs
b
revenue
c
factors of production
d
goods and services
b) Revenue
Explanation: In the circular flow diagram, firms receive money (revenue) from product markets in exchange for the goods and services they produce. Firms then use this revenue to pay for the factors of production (e.g. labor, capital) they need to produce goods and services.
Which of the following is considered a natural resource?
a
food products
b
labor
c
capital
d
water
d) Water
Explanation: Natural resources are resources that come from the natural environment and are used by humans to produce goods and services. Water is a natural resource that is essential for human survival and is also used for many economic activities such as agriculture, manufacturing, and energy production. Other examples of natural resources include minerals, forests, and renewable energy sources such as wind and solar power.
Which of the following will likely occur if Israel imposes a quota on automobiles imported from the United States?
a
Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture fewer automobiles.
b
Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.
c
Israeli consumers will purchase more automobiles, and Israeli producers will manufacture fewer automobiles.
d
Israeli consumers will purchase more automobiles, and Israeli producers will manufacture more automobiles.
b) Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.
Explanation: Imposing a quota on automobiles imported from the United States will limit the supply of American cars available in Israel, which is likely to lead to an increase in their prices due to higher demand. As a result, Israeli consumers are likely to reduce their purchases of cars, which will benefit domestic automobile producers. By restricting the supply of imported vehicles, the quota creates an opportunity for Israeli producers to increase their market share. Hence, Israeli producers will manufacture more automobiles.
A consumer must decide between purchasing a new television or a new computer. If the consumer chooses the television, then what is the opportunity cost of this decision?
a
The opportunity cost is the consumer's benefit from purchasing the computer.
b
The opportunity cost is the difference between the benefit from purchasing the television and the benefit from purchasing the computer.
c
The opportunity cost is the consumer's benefit from purchasing the television.
d
The opportunity cost is the difference in price between the television and computer.
a) The opportunity cost is the consumer's benefit from purchasing the computer.
Explanation: Opportunity cost is the value of the next best alternative forgone when making a choice. In this case, if the consumer chooses to purchase the television, the opportunity cost is the benefit that they would have received from purchasing the computer instead. Therefore, the opportunity cost of purchasing the television is the benefit of purchasing the computer, as described in option (a).
If Country A uses all of the resources at its disposal, it can produce a maximum of 500 watches or 200 televisions. Within the same time frame, if Country B uses all of its resources, it can produce a maximum of 200 watches or 100 televisions. Which of the following must be true?
a
Country A has the absolute advantage in watch production, but Country B has the comparative advantage in watch production.
b
Country B has the absolute advantage in watch production, but Country A has the comparative advantage in watch production.
c
Country A has the absolute advantage and the comparative advantage in watch production.
d
Country B has the absolute advantage and the comparative advantage in watch production.
a) Country A has the absolute advantage in watch production, but Country B has the comparative advantage in watch production.
Explanation: Absolute advantage refers to a country's ability to produce more output with the same amount of resources as another country. In this case, Country A can produce more watches (500) than Country B (200), so it has the absolute advantage in watch production.
Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country. To determine which country has the comparative advantage in producing watches, we need to look at the opportunity cost of producing watches in each country.
For Country A, the opportunity cost of producing 1 watch is 200/500 = 0.4 televisions.
For Country B, the opportunity cost of producing 1 watch is 100/200 = 0.5 televisions.
Since the opportunity cost of producing watches is lower for Country A, it has the comparative advantage in watch production. Therefore, option (a) is the correct answer.
What is the discount rate?
a
The discount rate is interchangeable with prime rate, the interest rate at which financial institutions charge to its least-risky, or best, customers.
b
The discount rate is the interest rate banks charge each other for overnight and short-term lending.
c
The discount rate is the interest rate at which the Federal Reserve charges to financial institutions on loans issued at the discount window.
d
The discount rate is a misnomer, as it is the interest rate at which financial institutions charge to the riskiest of borrowers.
c) The discount rate is the interest rate at which the Federal Reserve charges to financial institutions on loans issued at the discount window.
Explanation: The discount rate is an interest rate at which eligible financial institutions, such as banks and credit unions, can borrow money directly from the Federal Reserve. It is set by the Federal Reserve as a monetary policy tool to encourage or discourage borrowing.
Option (a) is incorrect because prime rate is a closely related concept, but it is not the same as the discount rate. Prime rate is the interest rate at which financial institutions charge their best customers.
Option (b) is incorrect because it describes the corresponding federal funds rate, which is the interest rate that banks charge each other for overnight or very short-term lending.
Option (d) is incorrect because the discount rate is typically lower than the interest rate charged to the riskiest borrowers, due to the lower risks involved for the lending institution when borrowing directly from the Federal Reserve.
If income levels of consumers within a given economy increase, what would happen to the demand curve for cell phones, a normal good, and the demand curve for instant noodles, an inferior good?
a
The demand curve for cell phones would shift to the left, and the demand curve for instant noodles would shift to the right.
b
The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would shift to the left.
c
The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would remain unchanged.
d
The demand curves would both shift to the right.
b) The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would shift to the left.
Explanation: A normal good is a good for which demand increases as income increases, while an inferior good is a good for which demand decreases as income increases.
As income levels of consumers within an economy increase, the demand for normal goods, such as cell phones, typically increases, leading to a shift to the right of the demand curve for cell phones. This means that at any given price level, consumers are willing to buy a larger quantity of cell phones.
In contrast,
Which of the following terms represents the monetary cost of using credit?
a
principal
b
interest
c
borrower
d
credit score
hey bot answer this question
Which of the following terms represents the monetary cost of using credit?
a
principal
b
interest
c
borrower
d
credit score