Economics Answers

1. A man has a rise in income from 25000 to 27000; as a result his savings rise from 900 to 1300. What is his MPC?
2. As income increases from 15000 to 17000 and savings from 5000 to 5800. What is MPC?
3. If in an economy, $20 is taxed out of every additional $100 in national income, $20 is saved and $10 is spent on imports. What is the value of the multiplier?
4. If in an economy, out of every additional 2000 of NY , 400 is taxed, 450 is saved and 100 is spent on imports. What is the value of the multiplier?
5. An economy has a NY OF 65m, a MPS of 0.3 and a MPT of 0.1. If the government wishes to achieve a NNY of 75m, how much will they have to increase spending by?
6. A man has an increase income from 35000 to 38000, as result his consumption increased from 14000 to 20000. What is his MPS?

Suppose E(X) = 5 and EIX(X-1)] = 27.5. What is

a. E(X)? [Hint: E[X(X - 1)] = E[X² - X] =

E(X²) - E(X)]?

b. V(X)?

c. The general relationship among the quantities E(X), EIX(X-1)], and V(X)?

Compute the following binomial probabilities directly from the formula for b(x; n, p): b. b(5; 8, .6)

a. b(3: 8..35)

c. P(3 ≤X ≤ 5) when n = 7 and p = .6 d. P(1X) when n = 9 and p = 1

Let X, the number of flaws on the surface of a randomly selected boiler of a certain type, have a Poisson distribution with parameter µ = 5. Use Appendix Table A.2 to compute the following probabilities: a. P(X ≤ 8) b. P(X = 8) c. P(9 ≤ X)

d. P(5 ≤X ≤ 8) e. P(5 < X < 8)

There are two machines available for cutting corks intended

for use in wine bottles. The first produces corks with diam

eters that are normally distributed with mean 3 cm and stan

dard deviation .1 cm. The second machine produces corks

with diameters that have a normal distribution with mean

3.04 cm and standard deviation .02 cm. Acceptable corks

have diameters between 2.9 cm and 3.1 cm. Which machine

is more likely to produce an acceptable cork?

Let X denote the number of flaws along a 100-m reel of magnetic tape (an integer-valued variable). Suppose X has approximately a normal distribution with = 25 and a = 5. Use the continuity correction to calculate the prob ability that the number of flaws is a. Between 20 and 30, inclusive.

b. At most 30. Less than 30.

describe the direction that the authorities should follow in order to reverse the continually deepening economic stagnation in South Africa?

The Toyota Motor Corporation makes cars in response to customer orders rather than attempting to sell cars it has already built. If the company received a large increase in orders for its Prius model, what will be expected of its current supply curve on a demand and supply diagram? 

1. difference(s) between the classical and Keynesian aggregate demand schedules. In your explanation indicate what factors shift aggregate demand in the classical model and Keynesian model? (4)

What is the key difference between the classical and Keynesian aggregate supply functions? What are the key factors that drive these differences? (4

Instructions that help match one person's saving with another person's investment are collectively called?