Economics Answers

Explain the flow of the markets for goods and services and markets for factors of production in a simple economy with the help of the Circular flow diagram.

2. a) One day, Barry (assuming one man in the economy), the barber collects Tk. 400 for haircuts. Over this day, his equipment depreciates in value by Tk.50. Of the remaining Tk. 350, Barry sends Tk. 30 to the government in sales taxes, takes home Tk. 220 in wages, and retains Tk. 100 in his business to add new equipment in the future. From the Tk. 220 that barry takes home, he pays Tk. 70 in income taxes. Based on this information compute - Gross domestic product (GDP), Net national Product (NNP), National income (NI), Personal Income (PI), Disposable personal income.

how is the forward looking monetary policy different from its backward looking counterpart? what is the divine coincidence and why is it difficult to implement?

Can the leader ever get a lower profit in a Stackelberg equilibrium than he would get in the Cournot equilibrium?

1- Suppose a perfectly competitive labour market has a demand curve of LD= 120 – 2w and a supply curve of LS= 8w, where W is the wage rate is dollars and L is the quantity of labour in person-hours
A. What are the equilibrium values of the wage and employment?
B. Suppose the government imposed a minimum wage of $14 per hour, now what are the equilibrium values of the wage and employment?
C. Repeat part (a) assuming now that the market is a monopsony?
D. Repeat part (b) assuming now that the market is a monopsony?

Explain, with examples, why an appreciating U.S. dollar does not benefit everyone in the American economy.

Which following is not true about CORE?
a. Core is always well-defined and follows weak linear equalities
b. Core cannot be empty
c. Set of feasible allocations that cannot be improved upon by a subset or a coalition of the
economy's consumers.
d. Core is closed and convex

Suppose Anna hires workers to cook hamburgers. If the first​ worker's marginal product is 19 hamburgers​, the second​ worker's marginal product is 32​, and the third​ worker's marginal product is 29​, then the average product of labor is
nothing hamburgers. ​(Enter a numeric response using a real number rounded to one decimal​ place.)
Now suppose Anna hires a fourth worker whose marginal product is above the average. If​ so, then the average product of labor will
▼
decrease
increase
.

Suppose Canada imposes high tariffs on Japanese automobiles. The intention is to make autos produced in Japan so expensive for Canadians to buy that they choose instead to purchase autos constructed in Canada. Advocates of the policy contend this will create new employment in Canada. Assuming the Bank of Canada maintains a flexible exchange rate, will this trade policy prove effective? Explain thoroughly. What if the Bank of Canada maintains a fixed exchange rate, how would be your answer? Explain thoroughly.

Suppose the reserve ratio is 20 percent, banks do not hold any excess reserves, people hold only deposits and no currency. Then the Fed buys $10 million worth of government bonds from banks. By how much and what direction do reserves change?