Macroeconomics Answers

identify which of the following purchases in counted as a national income
1) toyota motors purchases tire from good year to equip new car.
2) toyota motors purchases tires from good year to replace worn tires on executives company cars.
3) an individual purchased 50 shares of microsoft.
4) you purchased a laptop from pakistan.
5) pakistan government gives scholarship to the students.
6) employee contributes to returement plan.
7) suzuki company sells its product from its inventory.

You plan to travel in Europe this summer.
If you​ do, you​ won't be able to take your usual summer job that pays 9000​$ for the​ summer, and you​ won't be able to live at home for free.
The cost of transportation is 2000​$​, visas cost 100​$​, and living expenses are 1100​$.
What is the opportunity cost of your plan to travel in​ Europe?
Your opportunity cost is what you would have purchased with ​$
nothing if you did not go to Europe.

A leftward shift of the investment curve maybe caused by
A. An increase in interest rates
B. An increase in income
C. A decrease in interest rates
D. A decrease in expected profit

Which of the following is likely to shift the consumption schedule upwards?
[1] A currently large stock of durable goods in the possession of consumers. [2] Consumer prices are expected to rise.
[3] Expectations of a fall in interest rates.
[4] The expectation of a future rise in the consumer price index.

Which of the following statements is incorrect?
A. Induced consumption does not require income.
B.People always consume even if income is zero.
C. Consumption increases by less than the increase in income.
D. There is no relationship between consumption and interest rates

Q4: State why each of the following statements is true or false:
a. In calculating GDP from the expenditure side, economists add imports to other aggregate expenditure components.
b. If gross investment rose by $60 million there must be a replacement investment by the same amount.

Suppose an individual has preferences over consumption in period 1 and consumption in period 2 (i.e., there is only one consumption good that can be consumed in each period and its price is unity). She has no exogenous wealth, receives an income y only in period 1 but can lend (save) at the interest rate r% per period.
a. Using a revealed preference argument, prove that a per-unit tax t on consumption in each period is weakly preferred to a comprehensive (percentage) income tax t (i.e., on both y and interest income) that raises the same present discounted value (PDV) of revenue.
b. Assuming strictly convex preferences and an interior optimum under both taxes, show that the consumption tax is strictly preferred.

Column Cooperate Defect Cooperate 10, 10 0, 14 Row Defect 14,0 2,2 Suppose that Row and Column are completely self-interested and interact in a one-shot game. 1. What strategy would you expect each player to play? Why? 2. If there is an outcome of a game where there is not another outcome in which at least one player could be better off and no player worse off, we call that outcome “efficient”. Is this outcome such that there is no way to make either player better off without harming the other player? Why or why not?

Leading figures in the behavioral school of economics and their hypotheses, theories, works and awards (particularly the nobel prize). Discussion of divergences from neo-classical theory Framing and advertising The endowment effect Anchor pricing Implications for business strategy and public policy under neo-classical and behavioralist assumptions(which would require more regulatory involvement?).

An increase in criminal activity in South Africa acts as a deterrent to foreign tourists considering visiting South Africa, and as a result, there is a decline in the number of American tourists to South Africa.
Explain, with the aid of a graph, the effect of this on the rand/dollar exchange rate and the equilibrium quantity of dollars