In April 2025
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The data for the balance of payments is only available at current (nominal) prices.
1. True
2. False
1. A woman managing a duplicating (photocopying) establishment for $25,000 per year decides to open her own duplicating place. Her revenue during the first year of operation is $120,000, and her expenses are as follows:
Salaries to hired help $45,000
Supplies 15,000
Rent 10,000
Utilities 1,000
Interest on bank loan 10,000
Calculate (a) the explicit costs, (b) the implicit costs, (c) the business profit, (d) the economic profit, and € the normal return on investment in this business.
Inferior goods and giffen goods are synonymous since the two goods relate to the consumer's purchases. True/False, explain
In the Keynesian model, what would an increase in government spending result in?
The market demand and supply schedule for commodity X is as follows:
Qd=2000 -60 P and Qs=400 + 40P
What is the equilibrium price (RS) and quantity (Units) demanded for on the Market. Use a Diagram.
Potential GDP is determined by the size of the labor force, the stock of capital and the state of technology used in the production process. Assume that the country faces a pandemic and there is a considerable decline in the size of the labor force, the stock of capital and the state of technology used in the production process. Use an AD/AS diagram to illustrate potential GDP both before the pandemic and months after the start of the pandemic where the foregoing decline was observed and documented.
True or False. The contract curve in the Edgeworth box is the set of all allocations that are Pareto efficient.
True or False. The contract curve in the Edgeworth box is the set of all allocations that are Pareto efficient.
True or False. Consider two firms producing an identical product with marginal costs MC1= 1.98$ & MC2 = 2$ correspondingly. The two firms set their prices simultaneously (Bertrand competition) and the lowest price gets the entire market. If they set the same price they split the market evenly. A set of equilibrium prices is p1 = 2$ and p2 = 2.01$.
Let U(X,Y)=X+ln(Y). Show the effect of Py on X (i.e., ∂X/∂Py) and the effect of Px on Y (i.e., ∂Y/(∂Px), where Px and Py are prices of X and Y, respectively. Are ∂X/∂Py and ∂Y/∂Px the same? Specifically, are X and Y substitutes or complements? Why?
