# economyst

Popular questions and responses by economyst
1. ## application essay, plz help Writeacher, SarJMcgin

Below is a draft of my daughter's college scholarship application essay. I would appreciate if a few of the Jiskha gang could review and critique. Many thanks in advance. Scholarship Essay “What do you want to be when you grow up?” This is one of those

2. ## Economics

You should start a new post instead of adding on to an existing post. That said, I would go with A Which of the following statements is true?? A) The value of a good may change over time. B)A highly valued good is always more expensive than a lesser valued

3. ## GCSE Maths - Probability

First the denominator. There are 8*7*6*5*4*3*2*1 = 40320 ways the 8 friends could be seated. Now the numerator: There a 6 possible seats for Trevor (he cant have an end seat). For each of these 6 seats, the two brothers could be seated in 2 ways. (A on the

4. ## economic system

"appropriate" is a loaded and subjective word. Further, some government activities and programs could be widely viewed as appropriate up to a point. That said, we generally expect our federal government to: establish a monetary system maintain economic

5. ## Statistics

1) No, 8.0 is the correct answer. 2) a strange and unlikely probability distribution. But lets go with the stated parameters. It states that ZERO percent of the population loses less than 6 lbs OR more than 12 lbs, but exactly evenly distributed between 6

6. ## Macroeconomics

If your are in a first-year macro economics course then... 1) yes government purchases can increase total income. 2) cutting taxes could achieve the same result, 3) But the tax cut would need to be larger because the tax multiplier is one less than the

1. ## economics

Is there a question here?

posted on March 1, 2010

In economics "captial" generally means one of two things. First is physical capital which is, as you state, a means of production e.g., machinery. The second is financial capital e.g., cash. Now then, it is a bit easier to relate financial capital to

posted on February 17, 2010
3. ## economics

I presume you can determine the price the monopolist will charge. (hint: MR=100-2Q, MC=10) Draw a graph showing the demand line, the MC line, the MR line, the maximizing price and quantity. Consumer surplus will be the triangle area below demand but above

posted on February 4, 2010
4. ## Statistics

The probability of not hitting oil is .8 The probability of not hitting oil in 5 tries is .8^5 = .32768. Ergo, the probability of getting at least 1 hit is (1-.32768) = .67232

posted on February 4, 2010
5. ## consumer math

1) 200*34.5*(1.01) = 2) 13459*(1.0675) =

posted on February 4, 2010
6. ## statistics

There are a number of ways to solve this problem. Here is one. The standard deviation of a binominal is sqrt(n*p*q) where p is the probability of an event and q is 1-p. So, SD = sqrt(25*.38*.62) = 2.427 The expected number that 6 hours or less is .38*25 =

posted on February 3, 2010
7. ## Business Math and Statistics

I'm having trouble coming up with a "common" circumstance example of why a firm would purchase an annuity. Annuities generally lose their liquidity. The most common reason why a firm would hold a pile of cash is to have cash reserves -- to pay for

posted on February 3, 2010
8. ## taxes

If the \$1892 was earned income (e.g., wages), the person would likely receive a hefty \$757 earned income tax credit, which would be included in any "refund" check the person would otherwise receive.

posted on February 3, 2010
9. ## economics

I don't understand your demand equations. You state the demand for text books is: m 2py Could you elaborate and explain your terms? I would expect the demand function for text books to be some function of the price of text books and income. Regardless, the

posted on February 3, 2010
10. ## Microeconomics

ATC should be equal to \$4 under the conditions you state

posted on February 3, 2010
11. ## Finance

At .1 per pound, the variable cost per bag is \$5. Let n be the number of bags at break-even. So Tota revenue is 10*n. Total costs are 80000+5*n. Break-even is 10*n = 80000 + 5*n -- use algebra and solve for n.

posted on January 6, 2010
12. ## probability

How bout "from this group of 550+300+850=1700 students"?? Assumeing that you meant 1700 students, there are 400 from School A that took the bus. Ergo, P=400/1700 = 23.5%

posted on January 6, 2010
13. ## microeconomics

then potentially a lot of things. 1) The industry is perfectly competitive (or nearly so) 2) Implying that no single firm has a "large" market share. 3) Implying that each firm in the industry produces a product that is not distinguished (different) than

posted on January 6, 2010

I beg to differ. For a 20% increase in revenue to occur, people would need to purchase the same physical amounts of taxable goods and services they previously did and actually spend 1% more. This is unlikely because 1) with the effective higher prices, and

posted on January 5, 2010
15. ## managerial economics

Lets start with the assumption that the firm, prior to the settlement, was operating at a profit-maximizing level; where Marginal Costs=Marginal Revenues. From the information, the firm must have some monopoly power. it sets a price above MC, and is

posted on December 23, 2009
16. ## Managerial Economics

see my post above.

posted on December 21, 2009
17. ## Managerial Economics

See my post above.

posted on December 21, 2009

see my post above.

posted on December 21, 2009
19. ## Managerial Economics

I don't understand why total fixed costs should ever be a major component to a calculation that should be made on the margin. The question is simple, does the expected additional revenues (MR) from the added sales force exceed the expected labor costs (MC)

posted on December 21, 2009
20. ## Macroeconomics

Do a little research, then take a shot. What do you think? Hint: simply understanding how a fixed exchange rate differs from a floating rate should answer most of your questions.

posted on December 21, 2009
21. ## macroeconomics

Do a little research, then take a shot. What do you think? Hint: Be sure to understand import substitution policies vs export promotion policies. Hint2. How will foreign countries respond to such policies?

posted on December 21, 2009
22. ## DataManagement

Excek spreadsheets are very helpful for these kinds of problem. a) the probability of selecting a female is .3*.4 + .5*.5 + .2*.5 = .47. Ergo, the probability of picking a male is .53. The probability of picking all males is .53^50 = something really

posted on December 18, 2009
23. ## Managerial Economics

So, I take it, this is a two-by-two table. The rows are Indian River and Interior. The columns are also Indian River and Interior. What are the values in the tables? That is, what do they measure or represent??

posted on December 15, 2009
24. ## economics

Because leisure is a normal good. If you cut income taxes, then the after-tax income for each hour worked goes up. This effect alone should cause a person to want to work more. This is the direct substitution effect labor-for-leisure. However, leisure is a

posted on December 15, 2009
25. ## Macroeconomics - SOE

Let me elaborate with an example. Say something costs 2 euros and the euros to dollars ratio is 1. So, I need 2 dollars to purchase. (I take my 2 dollars to the exchange, and get 2 euros). Now let the euros/dollars exchange ratio drop to 0.5 NOW, I need to

posted on December 14, 2009
26. ## Managerial Economics

I'm having mucho trouble here. I need to see the table to see what is going on.

posted on December 14, 2009
27. ## Macroeconomics - NX & Tax

In the long run, in an open economy, imports=exports. If a country limits imports but continues to export, then goods are flowing out and foreign currency flows in. What good is that foreign currency if the holders cant buy anything with it? (Think about

posted on December 14, 2009
28. ## Macroeconomics - SOE

I think of the exchange rate as the number of a foreign currency units per dollar. e.g., euros/dollars. From this perspective, the statement makes perfect sense.

posted on December 14, 2009
29. ## economics

Do a little research, then take a shot. what do you think. Hint. Be sure to read up on Monetarists, and the quantity theory of money.

posted on December 14, 2009
30. ## macroeconomics

Do a little research, then take a shot. What do you think? Hint: be sure to read up on the money multiplier.

posted on December 14, 2009
31. ## macroeconomics

Take a shot, what do you think? Hint: just use common sense to answer this one.

posted on December 14, 2009
32. ## macroeconomics

Do a little research, then take a shot. What do you think?

posted on December 14, 2009
33. ## macroeconomics

do a little research, then take a shot. What do you think? Hint: think about what money is and can do for you. Physically, money (cept coins) is nothing more than a printed piece of paper

posted on December 14, 2009

First, calculate the mean (average) number days lost. The deviation, for any observation, is the difference between the observed value and the mean.

posted on December 14, 2009
35. ## macroeconomics

The Phillips curve plotted inflation against unemployment. So two correct answers: low inflation/unemployment or low unemployment/inflation

posted on December 14, 2009
36. ## Managerial Economics

Dell, HP, and Gateway largely build PCs which run on Microsoft, while Apple has its own operating system. So, HP and Gateway PCs are much closer substitutes for Dell PCs

posted on December 12, 2009
37. ## Microeconomics - Pareto Efficient

I think your first sentence is right. However, your reasoning is a bit off-base. Pareto-efficient implies that people with a marginal benefit above the marginal cost of producing the good can purchase that good. The above reasons you gave for deadweight

posted on December 11, 2009
38. ## Microeconomics - Normative Statements

I'm not sure what you are asking. That said, in cost-benefit analysis doesnt necessarily mean if one gains someone else must lose. A coomon social policy question asks whether some change in policy is a good idea or not. Under a pure pareto requirement you

posted on December 11, 2009
39. ## macroeconomics

Like some of your earlier posts, some critical information is missing. What is the price of a cart? and what is the useful life (in years) of a cart?

posted on December 11, 2009
40. ## macroeconomics

a) put income on the x-axis, consumption (and savings) on the y-axis. At x=100 and y=150 put a dot. At x=200 and y=200 put another dot. Repeat for 300 and 400. Connect the dots. b) slope is rise over run. With each 100 increase in income (run), consumption

posted on December 11, 2009
41. ## math

Something is missing here. You don't present the estimated equation, only one observation. Plz re-check your problem and then repost if you are still having trouble.

posted on December 10, 2009
42. ## macroeconomics

Savings = income - expenditures. So, for the first example savings =-50

posted on December 10, 2009
43. ## Macroeconomics

Use the multiplier. a) 8*10=80, b) -5*10=-50 and c) 20*10=200 Again, Am I missing something, some part of the problem, here?

posted on December 10, 2009
44. ## Macroeconomics

I have the feeling I am missing something. Are the questions referring to some graph which I don't see??

posted on December 10, 2009
45. ## Microeconomics - Oligopoly

The two firms agree to act as a monopolist. Sinc MC is zero for both firms, they will produce where MC=MR=0 (where MR is the combined MR for both firms). And when MR=0, the elasticity of demand is -1. So b is true. Now at this optimal production point,

posted on December 10, 2009
46. ## economics

I suspect there is something more to your question. The short, obvious answer is that output per worker increases.

posted on December 10, 2009
47. ## Economics

In the UK it costs 6 cloth to get 2 wheat. Ergo, cost for 1 wheat is 3 cloth. In US it cost 5 cloth to get 1 wheat.

posted on December 9, 2009
48. ## Managerial Economics

Integrate the MC function. MC is the first derivitive of TC. So, TC = 10Q + (5/2)Q^2 + C

posted on December 8, 2009
49. ## Economics

I don't know what "artifical supply creates artificial demand" means at all. A price ceiling that is below the otherwise equilibrium price creates a market shortage. (illustrate this on a supply-demand graph). I like your sentence about the black market.

posted on December 8, 2009
50. ## probability

Can you assume the probability of success is the same for everybody? Does success for 12 mean that each person was successful? If so. Let p=probablity of success for one person. Let x be the known probability of success for 12 people. So for 12 people p^12

posted on December 8, 2009
51. ## economics

Take a shot, what do you think? Hint: be sure to distinguish between economic profits and accounting profits.

posted on December 8, 2009
52. ## macro econ

The firm makes an optimal input choice when the marginal product of one input divided by the price (wage) is equal the marginal product of any other input divided by the price (wage) of that other input. So for printers MP=20, P=20. So MP/P=1 For presses,

posted on December 7, 2009
53. ## Economics/Statistics

Because they are perfectly postively correlated, the covariance between the q and z is 1.00 Because, (while not explained or pointed out), the possible answers are expressed in percentage terms and the decimal point is moved over 2 places, the answer you

posted on December 7, 2009
54. ## college/microeconomics

First, derive a marginal revenue curve (like you did in your previous post.) So, P=50000, Q=1, TR=50000, MR=50000 P=40000, Q=2, TR=80000, MR=30000 P=30000, Q=3, TR=90000, MR=10000 and so on. b) he makes 3 cars, charges 30,000 each, and makes 10,000 profit.

posted on December 7, 2009
55. ## college/microeconomics

see my response to your earlier post.

posted on December 7, 2009
56. ## Microeconomics:

Demand would simply be the relationship between price and quanty. E,.g, at P=18, Q=1. At P=2, Q=9.

posted on December 7, 2009
57. ## Economics (Production Possibility Frontiers)

I think it is line from (X=8.94, Y=0 to (X=0, Y=40). The line will be in a bow-shape. (I presume by: X = K1/2L1/2 means K and L are raised to the 1/2 power.) To see this, plot a graph. (Excel spreadsheets would be very helpful here).

posted on December 7, 2009
58. ## Economics (PPFs)

The marginal rate of substitution, in this context, is the amount of additional K you need to hold production constant in because of a decrease in L. (or vice versa) MRS = -MPk/MPl. In the production of X, MPk = (1/2)K^(-1/2)*L^(1/2) MPl =

posted on December 6, 2009
59. ## Prisoner's Dilemma

I can think of some prisoner dilemma outcome sets that would lead to cooperative behavior C). But I think the most likely outcome in a more traditiona prisoner dilemma game is E) Both players, interested in their themselves, will rat out the other by

posted on December 6, 2009
60. ## Economics

If she makes 20, she sells all 20 and makes 20 profit. If she makes 50 there is a .5 chance she sells all 50 and makes a 50 profit, and a .5 chance she sells 20, throws 30 in the trash and makes a 10 loss. Her expected profit is .5*50 + .5*(-10) = 20.

posted on December 5, 2009
61. ## Economics/Math

You state that q and z are perfectly positively correlated. This alone says the covariance of q and z is 1. The rest of the information you provide is a red herring.

posted on December 5, 2009
62. ## Economics

Without insurance, Pete's expected utility is .9*sqrt(2*10000) + .1*sqrt(2*2500) = 134.3502884 utils So, what wealth give him equal amount of utility. Well, work the utility formula backwards. That is (134.3502884^2)/2 = 9025. Take it from here.

posted on December 5, 2009
63. ## economics

take a shot, what do you think? Hint: calculate the change in revenue from each 0.2 increase in advertising, subtract the marginal cost of producing that extra unit. (e.g., calculate the change in profit from each 0.2 increase in advertising). Keep

posted on December 4, 2009
64. ## Economics/Math

If you sold right now and put the money in the bank, after one year you would have 500*(1.05) = 525. After two years you would have 525*(1.05) = 551.25. So, assuming you get no enjoyment from looking at the painting, go with E)

posted on December 4, 2009
65. ## college microeconmics

take a shot, what do you think. hints: Max profit occurs when MC=MR, break-even occurs when TC=TR.

posted on December 3, 2009
66. ## economics

If you are doing your dissertation, you must be well beyond anything we could offer. So, hows about joining the Jiskha crew and help mostly high-school level students with their homework?

posted on December 3, 2009
67. ## economics

Take a shot. What do you think. Hint: think opportunity cost. What is the opportunity cost of holding the land and running a model on it?

posted on December 1, 2009
68. ## microecon

I'm having a trouble with your notation. This Jiskha site has mucho trouble in expressing mathmatical equations. (where did your "f" come from?) That said, this is more of a calculus question. MR is the first derivitive of total revenue, so Pdq/da looks

posted on December 1, 2009
69. ## macro economics

I need more information. What exactly are you trying to graph. What are you being asked to do. When I see income and substitute in the same sentence, I am thinking you are being asked to illustrate income and substitution effects on a demand curve.

posted on December 1, 2009
70. ## Economics

Do a little research, then take a shot. What do you think? Hint: Maximize profit where MC=MR. In a perfectly competitive market MR=P. Hint2: the demand curve facing a firm in a perfectly competitive market is a horizontal line. (in economics terms:

posted on November 30, 2009
71. ## Economics

Take a shot. what do you think?

posted on November 30, 2009
72. ## math-probability

if they each get one shot P=.50*.80*.75=.3 = 30%

posted on November 30, 2009
73. ## macro econ

No, you are way off track. For utility maximization in spending on goods, you want the spend where the marginal utility per dollar is the highest. So, if MUx/Px is greater than MUy/Py then spend more on x and perhaps less on y. I presume your "10.00" is

posted on November 30, 2009
74. ## Probability again

follow the basic methodology that Drwls showed you in the previous post. Assume each color ball can be distinguished from each other. (e.g., name the green balls g1 and g2) First, the denominator. How many different ways can 3 balls from 12 be chosen.

posted on November 30, 2009
75. ## Economics

I have no idea What is the question, and What does "5=(10,4)+40=(10,4)" mean.

posted on November 29, 2009
76. ## Math

There is no way these series could represent a linear equation. You have two different values for P -- 8 and 10. Yet both values have an associated Q of 110

posted on November 29, 2009
77. ## ECONOMICS

do a little research, then take a shot. What do you think? Hint. Be sure to read up on the money multiplier.

posted on November 29, 2009
78. ## Statistics

I too am confused. The FDA's tested mean is below their "standard" of 30.2. How could they possibly conclude the acutual mean above 30.2??

posted on November 29, 2009
79. ## Microeconomics - Cournot

a) I agree b) I agree c) Cournot models can be tricky beasts. But in this example, I believe the soulution is easy because 1) both firms have flat MC curves and MCx < MCz. I believe firm X, in the end, will drive P down to 6 and Z will produced nothing. (I

posted on November 25, 2009
80. ## mangerial economics

Take a shot, what do you think? Hint: On a graph, Consumer surplus is the area below the demand curve but above price. Compare the area using the Price the Monopolist would change to maximize his profits vs the price where P=MC. You will need to use some

posted on November 25, 2009
81. ## MACROeconomics - Game Theory

I'm having some trouble with your notation. Let me asssume that (x,y) means that x is the outcome going to player A, y is the outcome going to player B. If top left is a dominant strategy equilibrium, it implies A perfers outcome Top and B prefers outcome

posted on November 24, 2009
82. ## managerial economics

see my post to Cheri above.

posted on November 24, 2009
83. ## Managerial Economics

I think something is missing and something is odd. the supply equation doesnt have a Q in it and the demand equation has some weird character. Regardless, set supply=demand and solve.

posted on November 24, 2009
84. ## Economics-HELP!

As I see it, the total benefit per person function is (1-.01Q)*Q = Q-.01Q^2. So, the national total benefit function TB is 100Q-Q^2. The marginal benefit schedule is the first derivative of the TB function. So, MB=100-2Q MC of a test is given as 10. Set

posted on November 24, 2009
85. ## Statistics

you could randomly divide people into two groups, one gets BW and the other gets Color. The BW group is the control group. Or, as I gather, you want to give each student two list. Then, the control group would get BW and BW, while the test group gets BW

posted on November 24, 2009
86. ## Managerial Economics

See my previous post on calculating the optimal quantity, then price. Compare that to the competitive case where supply=demand or 850-2Q=250+4Q -- solve for Q.

posted on November 24, 2009
87. ## Managerial Economics

Always always always, maximize where MC=MR Total revenue is P*Q = 1000Q- 0.5Q^2. MR is the first derivative of TR. So, MR=1000 - Q MC is the first derivative of TC. So, MC=100 + 5Q MC=MR is 100+5Q = 1000-Q. solve for Q. then plug the optimized Q into TC

posted on November 24, 2009
88. ## managerial economics

First, the parameter estimates are for a and b. a is the intercept, b is the coefficient on N. (n and N appear to be used interchangeably). I would argue the equation does a poor job of predicting total earnings E. The R-Squared is well below a number I

posted on November 23, 2009
89. ## managerial economics

Do you have a question?

posted on November 23, 2009
90. ## managerial economics

Set MC = MR and solve for P. That is 40P = 1000-10P

posted on November 23, 2009
91. ## Economics

Do a little research, then take a shot, what do you think?

posted on November 23, 2009
92. ## Probability

I believe I answered this in an earlier post. There are 9 possible values for the first digit and 9 for the second, and so on. So, there are 9^8 possible serial numbers, where no digits is a zero. Similarly, there are 8^8 possible values where no digit is

posted on November 23, 2009
93. ## Microeconomics

Both production runs of 300 and 400 produce the same profit and the maximized profit. Take it from here.

posted on November 23, 2009
94. ## stats

Ok, you have 5 cards showing, meaning 47 remain. You have 4 hearts showing, meaning 9 remain. There are 47-choose-2 ways of picking the next two cards. = 47!/2!(47-2)! =1081 possible ways. This will be the denominator. Now then, the number of ways of

posted on November 23, 2009