Economics Answers

Rachel earns $100,000 a year as a marketing and sales excutive. She is 48 years old and single. She is interested in saving for her eventual retirement. Which alternative do you recommended

Suppose equilibrium GDP is less than full-employment output and the economy is in a recession. What are the appropriate fiscal policies that would take the economy to full employment level?
Increase taxes
Decrease government spending
Lower transfer payments
Decrease taxes

Using suitable illustrations and examples describe in detail the advantages and disadvantages of the monopoly

Until recently,you worked for a software development firm at a yearly salary of $35000.Now you decide to open your business. You quit your job,cash in $10000 savings account at a 5% interest and use the money to buy computer hardware to use in your business. You also convert a basement apartment in your house, which you have been renting for $250 a month into your workplace for your new software firm. You lease some office equipment for $3600 a year and hire two part time programmers whose combined salary is $25000 a year. Cost of providing heat and light is $50 a month. What are the total annual explicit costs of your new business? What are the total annual implicit costs? At the end of your first year,your accountant informs you that your total sales for the year amounted to $55000. She congratulates you on a profitable year. Are her congratulations warranted. Why or why not?

Year
Nominal
GDP (bill.)
Price
Index (GDP deflator)
Real
GDP (bill.)

Year 1
$4,486.0
108


Year 2
$4,710.3
112







(ii) Between Year 1 and Year 2, the price level has___ increased/decreased by ____%

Discuss the two principles of justice as mentioned by rawls. Do you think rawls theory of justice is relevant for the third world countries

Suppose a country institutes an investment tax credit, and this leads to an increase in investment
spending of $100 billion. Suppose the multiplier is 1.5 and the economy’s real GDP is $5,000 billion.
A. In which direction will the aggregate demand curve shift and by how much?
B. Explain using a graph why the change in real GDP is likely to be smaller than the shift in the
aggregate demand curve

explain the main reasons why a competitive equilibrium may fail to exist. Illustrate using an Edgeworth box

show that for all two person games in normal form the set of rationalizable equilibria is identical to the set of strategies that remain after iterated removal of strictly dominated strategies and therefore rationalizable

Calculate the following:
Quantity
Total Fixed
Cost
Total Variable
Cost
Total
Cost
Average
Cost
Marginal

25 10 18 ? ? ?
26 10 20 ? ? ?
27 10 21 ? ? ?
Analyse the changes in the calculated costs as quantity produced increases.