Economics Answers

Consider a demand curve for reckless driving, for which the "price of reckless driving" is interpreted as the probability of having a fatal accident. When could safer cars lead to an increase in total number of driver fatalities?
A. Always.
B. Never.
C. When the demand curve is relatively flat.
D. When the demand curve is relatively steep.

(Absolute and Comparative Advantage) information concerning the production of wheat and corn in the United States and Russia?
Edit
Millions of tons of grain produced in one year

Russia wheat 15 Corn 150
U.S Wheat 60 Corn 300

a. What is the opportunity cost of producing a unit of wheat in Russia? In the United States?
b. Which country has an absolute advantage in producing wheat? In producing corn?
c. Which country has a comparative advantage in producing wheat? In producing corn?
d. Which country should specialize in producing wheat? In producing corn?

This question is about the incidence of tax falling wholly on the producer. However it's mostly to do with the diagram of perfectly inelastic supply curve.
In my course book, the book stated "If the supply curve is perfectly inelastic, then the supply curve after imposition of the tax will be the same as the one before."
My question is why will the supply curve not shift and stay in the same place?

Many thanks

Part III: Diagram & Analysis
(f) Expansionary Monetary Policy: Suppose the money supply increased to M=P = 1840. Solve
for Y,i,C, and I, (repeat parts (a) through (e)) and describe in words the eects of an expansionary
monetary policy. Show the change on the diagram below. Label your diagram. Identify the old and
the new equilibrium.
(g) Expansionary Fiscal Policy: Suppose the money supply is at its initial value of 1600 but gov-
ernment increases its spending to G = 400. Solve for Y,i,C, and I, (repeat parts (a) through (e))
and describe in words the eects of an expansionary scal policy. Show the change on the diagram
below. Label your diagram. Identify the old and the new equilibrium.

(a) Derive the IS relation. (Hint: You want an equation with Y on the left side and everything else on
the right.)
(b) Derive the LM relation. (Hint: It will be convenient for later use to rewrite this equation with i on
the left side and everything else on the right.)
Part II: Solve for equilibrium
(c) Solve for the equilibrium real output. (Hint: Substitute the expression for the interest rate given by
the LM equation into the IS equation and solve for output.)
(d) Solve for equilibrium interest rate. (Hint: Substitute the value you obtained for Y in part (c) into
either IS or LM equations and solve for i. If your algebra is correct you should get the same answer
fromn both equations)
(e) Solve for the equilibrium values of C and I, and verify the value you obtained for Y by adding C, I
and G.

The Goods Market & The Financial Markets : The IS-LM Model
Suppose that the economy of Biscuitville is characterized by the following goods market behavioural
equations:
C = 200 + 0:25YD
I = 150 + 0:25Y - 1000i
G = 250
T = 200
where there is only one good produced and consumed in the economy: biscuits! Suppose additionally that
nancial markets are characterized by the following equations:
(M=P)d = 2Y - 8000i
M=P = 1600

Why efficiency is not sufficient to address equity issues?

What would be an opportunity cost of building a new public high school?

An individual lives in a world where there are only two goods X and Y his utility function is U=50x-0.5x^2+100y-y^2.The price of x is 4 and his income per period is 672.
Derive his demand function for y

what is the effect on society of the following traditional system