Economics Answers

The financial crisis of 2008 caused macroeconomists to rethink monetary and fiscal policies. The true question is whether we are headed down the same path, and if the "victims" of the 2008 crisis have done anything to shift the tide?

Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $50,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 5%. He currently has $80,000 saved, and he expects to earn 10% annually on his savings. How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Round your answer to the nearest cent.

what is a capital good?

1. YouTube, a popular and free video-sharing website, has introduced a new premium subscription service called YouTube Red. YouTube Red will remove advertising from all videos and include some additional content. The price of the subscription is $9.99 USD per month. Suppose YouTube knows that at the current price, the point elasticity of demand for the service is elastic.
Select the item from the list provided to make the following statements true.

In order to increase revenue, YouTube should __________ the price of YouTube Red.

YouTube Red could be considered a __________ item because you can still view videos on YouTube (with advertising) without paying for YouTube Red.

A 1% increase in the price of YouTube Red would lead to a __________ than 1% decrease in the number of subscribers.
1. budget
2. 1
3. greater
4. 0.18
5. necessary
6. increase
7. luxury
8. 0
9. decrease
10. time
11. substitute
12. demand

1. Flowers are one of the most common gifts to give on Valentine's Day, a celebration that occurs every year on the 14th of February. A flower shop knows that in the past, because of the high demand for flowers on this day, it could sell 50 bouquets of flowers for $119.50 each. This year, on Valentine's Day, the flower shop decides to increase the price of the bouquets to $129.50 and sells 48 bouquets.

Which of the following statements are true (to four decimal places):

The point price elasticity of demand for the bouquets at a price of $119.50 is 0.4780.

The point price elasticity of demand for the bouquets at a price of $119.50 is 11.9500.

The point price elasticity of demand for the bouquets at a price of $119.50 is 0.0837.

A 1% decrease in the price of bouquets would lead to a 0.4780% increase in the quantity of bouquets demanded.

1. The Brisbane Entertainment Centre is a performance venue, which hosts popular musicians from around the world. It has a maximum seating capacity of 13,500 people. In 2015, an artist priced their performance at a price of $50 per ticket and the show was completely sold out. The next year the same performer decided to increase the price to $100 per ticket but this time only 12,000 tickets were sold.
1. The point elasticity of demand at a price of $50 is 0.07% (rounded to two decimal places).
2. A 1% increase in the price of a ticket leads to a 0.11% (rounded to two decimal places) decrease in quantity demanded.
3. A 1% increase in price leads to a 0.07% (rounded to two decimal places) increase in quantity demanded.
Which of the above statements are true:

Only 1 is true.

Only 2 is true.

Both 1 and 2 are true.

Both 2 and 3 are true.

All three are true.

how insurers manage their risks in ways other than re-insurance.

What does the supply curve show?

(b) Initially, both Australia and the US spent half a day producing ethanol and half a day producing wheat. However, they now decide to specialise in producing the product that they have a comparative advantage and trade their products in the world market. What are the total gains from trade?

Assume that a country has a growing budget deficit, carries a very large debt, is in a period of high unemployment with interest rates almost at zero, and annual inflation and GDP growth of about 2%

Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs

Discuss the dangers of a high debt to GDP ratio and a growing budget deficit and how this affects your policy recommendations