Economics Answers

Consider a small country that exports steel. Suppose that a ‘protrade’ government decides to subsidize the export of steel by paying a certain amount for each tonne sold abroad. How does this export subsidy affect the domestic price of steel, the quantity of steel produced, the quantity of steel consumed, and the quantity of steel exported? How does it affect consumer surplus, producer surplus, government revenue, and total surplus? (Hint: The analysis of an export subsidy is similar to the analysis of a tariff.)

Show the effect of each of the following events on the market for labor in the computer

manufacturing industry.

a. The federal government buys personal computers for all Australian university students.

b. More university students study engineering and computer science.

c. Computer firms build new manufacturing plants.

Your enterprising uncle opens a sandwich shop that employs seven people. The employees are paid $32 per hour and a sandwich sells for $8. If the market for sandwiches is competitive, and your uncle is maximizing his profit:  

a. What is the value of the marginal product of the last worker he hired? 

b. What is that worker s marginal product?  

c. Suppose that your uncle purchases a new machine that increases the marginal product of each worker. How will this affect the number of workers that he hires? Explain.

Suppose Colgate and Doctor Toothpastes are substitutes of each other; explain the effect of an increase in the price of Colgate on demand of Doctor Toothpaste? Also illustrate diagrammatically this change in the demand of Doctor Toothpaste will be entitled as change in quantity demanded or change in demand curve?

Draw a demand and supply graph for the market for Dell notebook computers

How decrease income will affect demand of meat which is normal goods

How decrease income which is normal goods

Suppose Colgate and Doctor Toothpastes are substitutes for each other; explain the effect of an increase in the price of Colgate on the demand for Doctor Toothpaste? Also, illustrate diagrammatically this change in the demand for Doctor Toothpaste will be entitled as a change in quantity demanded or a change in demand curve?

Suppose Colgate and Doctor Toothpastes are substitutes for each other; explain the effect of an increase in the price of Colgate on the demand for Doctor Toothpaste? Also, illustrate diagrammatically this change in the demand for Doctor Toothpaste will be entitled as a change in quantity demanded or change in demand curve?

1. The paradox of thrift states that a downward shift in the saving schedule will lower the equilibrium level of national income.

True False

2. If investment demand is given, the slope of aggregate demand is determined by the consumption function.

True False

3. An economy's aggregate demand curve shows that other things are constant:

A. when the general price level changes, there is a shift in the curve.

B. there is some price level that generates an aggregate equilibrium in the economy. 

C. any reduction in the general price level causes a reduction in GNP.

D. None of the above.

4. In a simple economy with the government but no foreign trade, aggregate income is in equilibrium when:

A. tax revenues equal government spending. 

B. planned savings equals planned investment. 

C. planned leakages equal planned injections. 

D. actual leakages equal actual injections.