Other Economics Answers

Reflection paper about "How the economic machine works" by Ray Dalio

• 1.     A consumer has 280 to spend on two commodities, the first of which costs 2 per unit and the second 5 per unit. Suppose that the utility derived by the consumer from x units of the first commodity and y units of the second commodity is given by the  Cobb-Douglas utility functions as:

a)   How many units of each commodity should the consumer buy to maximize utility?

b)   Compute the Lagrange multiplier and interpret in economic terms?

1.     A consumer has 280 to spend on two commodities, the first of which costs 2 per unit and the second 5 per unit. Suppose that the utility derived by the consumer from x units of the first commodity and y units of the second commodity is given by the  Cobb-Douglas utility functions as:

a)   How many units of each commodity should the consumer buy to maximize utility?

b)   Compute the Lagrange multiplier and interpret in economic terms?

Choice 1 A machine is purchased for 60,000. It is a 5 year property class. It will be used for 10 years after which it will have a salvage value of 15,000 It is mostly grey with a metallic cover

The Before Tax Cash Flow will be 80,000 per year. The machine is purchased from Retained Earning cash

outright. It has no extra deductions associated with it

Choice 2 A machine is purchased for 65,000. It is a 10 year property class nhject. It will b used for 12 years with a salvage value of 18,000 it is mostly bice with a white cover. The Before Tax Cash Flow will be 86.000 per year. The machine is purchased from Retained Earnings Cash Outright. It receivers an additional allowance for environmental effects of 5000/yr. The allowance is not taxed and is not included in the 86.000 BTCF

Only one response below is correct

Which of the following statements is true in the third year of operation?

The After Tax Cash Flow of choice 1 exceeds choice 2

Discuss the trends in India’s demographic transition. What are the factors 

that led to this transition? Also discuss future issues and challenges in this 

area?

Have you ever thought of starting your own small business? Think of a good or service you might like to provide to your community. Then, describe how you would supply the good or service. How would you go about estimating demand for your good or service? Evaluate whether there would be enough demand for there to be a “market” for your good or service.

Describe the Circular Flow. Describe how the good moves in relation to:

• Households
• Suppliers of goods and services
• Money

Consider a government spending program you have read about in the news or research one online. In a well-composed post, explain the opportunity cost of that government decision. What was the next best alternative in your opinion? Describe how “scarcity” factors into the decision process. (Remember that all things are scarce.)

How does ups and downs of commodity affect revenue derived from the sell of a commodity that have substituted, if the demand of that commodity is elastic and helastic.

how environment affect the economic system in society