All Questions

Hello I'm currently doing an assignment and come across a tricky questions.. What is the form of comparative advantage that a country can have anyway? does it need to be compared with another country? ...

In my textbook, borrowing from abroad is listed as one of the method to increase the value of a currency by shifting its demand curve to the right. "If the country borrows from abroad, its loans ...

Random example, but let's say I'm examining the effect of a health program on influenza cases in India. They just randomly start the program in 7 of the 29 states. I have data on the number of flu ...

Suppose there is a tax increase. Because during the economy's reaction to this the interest rate becomes a) higher, the decrease in GDP is larger than if the interest rate had not changed b) higher, ...

If we have to leave Earth sometime and we want to build giant spaceships for that, how can those be financed? I mean, when everyone wants to leave, regular things like money, property, business, etc. ...

I am of the understanding that an Economy is broken down as follows: Traditional; Command; Market; Mixed. Each Economy being made up of Sectors, which in turn, are made up of Industries. Simply put,...

A friend of mine is working as a tattoo artist in Sweden. She has her own company but not her own studio. She rents studio and material from someone else. She pays him a certain amount and what is ...

If currency /deposit decreases, then bank rate________ 1) increases 2) decreases 3) remains constant 4)none of the above codes: A)1,2,3,4 are correct B)1 and 2 are correct C)only 1 correct D)1,2,3 ...

It's a quetion that I'm concerning about: The supply volume in the market has been increased by government projects where the prices received by the producers are low compared to the market ...

I have a panel data model as following, $$Y_{it}=intercept +B_1X_{it}+B_2Q_{it}+error_{it}$$ where $i$ is for firm and $t$= time. $Y$= trade credit demand, $X$= inventory cycle, as inventory ...

When does paying more for rent to live closer to work out weight the cost to driving to work?

Im reading alot on public finance and have been seeing alot of mention of measuring "general equilibrium effects". I know what general equilibrium is, but i dont know what general equilibrium ...

I'm having some confusion with using the terminology of MRS. For example, let's take up this question: If good 1 is a “neutral,” what is its marginal rate of substitution for good 2? The answer is:...

I am taking AP Macroeconomics, and am about 2/3 of the way through the curriculum. We have learned about various supply-demand graphs, and right now we are working on the market for money. I have ...

I am solving a three-stage game in which one agent makes two decisions in stage 2. Does it make a difference if I use 4 stage game sequential game or 3 stage simultaneous game considering the fact ...

I'm trying to make the argument that our Sales go up when prices for all our Products are 30% off. Which I believe should be our new Regular Price. but our Demand Curve doesn't support this. Should I ...

I'm conducting a research in which the real exchange rate serves as a variable. A quick literature review shows that we can use the product of the nominal exchange rate and the ratio between the US ...

I have started studying the Pareto efficiency notion in Game theory. The definition I am familiar with is this: Strategy profile $\mathbf{s}$ Pareto dominates strategy $\mathbf{s}'$ if for all $i\in\...

I am looking for the equivalent of CPI index but only for the industry.

Context: I was watching a video about Venezuela, and, it all started with capital flight due to poor confidence in the government. The government tried to stop it, and in the process it created a ...

Price elasticity of demand of good A is 1.20. If we increase a price by 15% what will happen to quantity demanded of good A? My answer is 18% increase since % change in Q = 1.20 * %change P Is this a ...

Assume a labor-intensive production function: $Q(L)=L^\beta$ Find demand of labor that maximizes profits (unconditional demand $L(p,w,r)$), the demand of labor that minimizes costs (unconditional ...

Let's say that there is a hotel owner $(H)$ and a woodworker $(W)$ working in close proximity to one another. The woodworker produces $x$ units to sell at market at $p_{x}=6,5$. From the woodworking ...

I’m an absolute noob when it comes to economics, stuck on a question at the moment, can someone please help? “Assume that in Euroland(fictional country), people immediately deposit 100% of all cash ...

I'm interested in the elasticity price demand that predicts that as a resource becomes more scarce, it gets more expensive. Regarding oil price this isn't clear. Is there an example of a resource ...

Suppose I have n individuals and n unique, indivisible objects of potential value. I want to allocate those objects so as to make total welfare as great as possible, subject to the constraint that no ...

Textbook: "Suppose that a new pizza assembly line improves the pizza production process and that the development of the new assembly line does not require the use of more of society's resources. ...

My question concerns a household's utility function U(c,l). We're told that the partial derivatives dU/dc and dU/dl > 0, and the second order partial derivatives are negative. Now, can I assume ...

suppose, I bought the same machine in different countries every year between 2010 and 2018 in dollar and euro. How I can adjust data for inflation and foreign exchange to evaluate the cost evolution ...

When measuring the net economic impact of a citizen or group of citizens, what measure is used? Is it GDP contribution (ie GDP/capita)?

Correct me if I'm wrong, but as far as I understand one of the greatest causes of the 2008 financial crisis revolved around the way Lehman brothers where rating mortgage-backed securities (giving a ...

Is there an academic consensus on whether a trade deficit is good/bad or neither? And if that country is in a monetary union, does the answer change because the wealth moved out of the country can be ...

When countries commit "economic crimes"---ie, theft of intellectual property, dumping, currency manipulation---are sanctions effective at making them stop? I am specifically looking for examples of ...

What are “passports” in the context of financial services? I have also heard the term “passporting rights.”

If someone has probability p(n) of being alive after n periods and p(n) is known with p(n) = 0 for n >= m, and if he has log utility of consumption, and his utilities are additive over time, and ...

My textbook describes the GVA at Market Prices as: GVA at Basic Prices + Product Taxes - Product Subsidies. Various sources online refer this same sum (GVA at Basic Prices + Product Taxes - Product ...

Are services included in the calculation of a trade deficit? Presumably measuring service exports is more difficult/less accurate(?) than for goods?

Why is London as successful as it is in financial services? Are there unique characteristics or historical factors that make it attractive to financial service companies?

Question : Provided that interest on debt is 12%, dividend to share holders are 15%. Calculate the weighted average cost of capital if debt is 70% and equity is 30%. Given, tax rate is 20%. I know, ...

My AP macroeconomics teacher ran through some examples today of what transactions would or would not be counted in GDP. He gave examples, among others, of a person cashing a social security check (...

Any hints on how to approach this problem would be appreciated. Here is the statement of the problem: A consumer bought a tape recorder which cannot be returned. Their utility function is given by $...

In a 2nd price option, if all the player choice their bids independently, the optimal strategy is to bid their valuation. However, in some situations, their decisions can effect each other. For ...

Can anyone help me find a nice introduction (possibly popular economics) into the field of black market economics.

I have a basic question What are the different means/mechanisms available to address supply-demand imbalance? The answers that come to my mind are : Using pricing (when demand > supply) Using ...

In a normal form game with two players, we call a joint strategy $s=(s_1,s_2)$ a Pareto optimal outcome if for no joint strategy $s'$, for all players $i\in\{1,2\}$, we have $$u_i(s')\geq u_i(s)\qquad(...

I have the price of equipment (machine tool) purchased between 2010 and 2018 in different countries (i.e. Ukraine, brazil, us, germany, etc.) and I would like to remove the effects of inflation for a ...

Just wondering if these preferences are consistent with the von Neumann Morgenstern independence axiom. I think they are but I am having trouble knowing for sure. thank you! Lottery a: \$1 with ...

so I know that usually the income curve is equal to: $$x_1p_1 + x_2p_2 = m$$ if we rearrange this equation we get that the demand for good one ($x_1$) is equal to: $$x_1 = \frac{m-x_2p_2}{p_1}$$ None ...

An individual faces the following investment opportunity set, F(Y0,Y1) = (100-Y0)(1.07 + 0.0003 x Y0) - Y1 = 107 - 1.04Y0 - 0.0003Y02 - Y1 = 0 where Y0 is the current period dollars and Y1 ...

Here is a supply and demand equations with a question that asks find the equilibrium quantity and price. I cant figure out solving it because of the supply equation. How can it be solved?