All Questions

-1
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0answers
2 views

Comparative advantage under 4th industrial revolution?

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? ...
0
votes
1answer
12 views

Question about maintaining fixed exchange rates

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 ...
0
votes
0answers
7 views

How to control for population in Difference-in-Difference?

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 ...
0
votes
0answers
4 views

Effect of tax increase on interest rates?

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, ...
0
votes
0answers
16 views

Financing generation spaceships

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. ...
1
vote
1answer
20 views

What is an Economic Sector?

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,...
0
votes
0answers
28 views

Pay taxes or not? [on hold]

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 ...
-2
votes
0answers
13 views

About bank rate

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 ...
0
votes
0answers
12 views

plotting the economic benefits of government projects

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 ...
0
votes
1answer
23 views

Endogeneity problem with a dummy variable

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 ...
0
votes
0answers
21 views

What distance does driving to work cost less? [on hold]

When does paying more for rent to live closer to work out weight the cost to driving to work?
1
vote
1answer
28 views

What are general equilibrium effects?

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 ...
0
votes
0answers
15 views

MRS of good X for good Y

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:...
0
votes
1answer
29 views

Is there a definitive way to tell if an action causes a movement or shift in a supply-demand graph?

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 ...
-1
votes
0answers
15 views

Simultaneous vs Sequential game

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 ...
0
votes
1answer
15 views

Demand Curve Price not perfectly elastic

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 ...
0
votes
0answers
6 views

Two deflator series with different base year to proxy real exchange rate

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 ...
1
vote
0answers
36 views

Pareto Efficiency Outcomes in Games

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\...
0
votes
1answer
13 views

Which index reflects the price evolution for industy in Brazil?

I am looking for the equivalent of CPI index but only for the industry.
0
votes
1answer
30 views

Why does capital flight cause inflation?

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 ...
0
votes
0answers
16 views

Increase of price of good and effect on elasticity of demand

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 ...
0
votes
0answers
25 views

Profit Maximization and Returns to Scale

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 ...
1
vote
1answer
23 views

Have I found the correct Emission Price

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 ...
-2
votes
0answers
25 views

Trouble with Macroeconomics Homework

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 ...
1
vote
1answer
27 views

What's an example of a resource, raw material that has become scarce?

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 ...
1
vote
0answers
13 views

Feasible approaches to allocate n unique indivisable items among n individuals

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 ...
0
votes
1answer
19 views

How Does Production Possibility Curve Shift (Partially)?

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. ...
0
votes
0answers
19 views

Can I make this assumption about the utility function?

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 ...
0
votes
1answer
17 views

Should I standardize my data?

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 ...
0
votes
0answers
7 views

When measuring the net economic impact of a citizen, what measure is used?

When measuring the net economic impact of a citizen or group of citizens, what measure is used? Is it GDP contribution (ie GDP/capita)?
0
votes
0answers
6 views

Lehman brothers bond rating

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 ...
0
votes
0answers
15 views

Are trade deficits good/bad or neither?

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 ...
1
vote
2answers
33 views

Do sanctions work?

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 ...
-1
votes
1answer
18 views

What are financial service “passports”?

What are “passports” in the context of financial services? I have also heard the term “passporting rights.”
0
votes
1answer
16 views

Optimal spending over several periods with log utility and uncertain lifetime

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 ...
0
votes
0answers
6 views

Is the GDP at Market Prices same as the GVA at Market Prices?

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 ...
1
vote
1answer
19 views

Are services included in the calculation of a trade deficit?

Are services included in the calculation of a trade deficit? Presumably measuring service exports is more difficult/less accurate(?) than for goods?
0
votes
0answers
11 views

Why is London as successful as it is in financial services?

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?
0
votes
0answers
6 views

Calculating the weighted average cost of capital

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, ...
0
votes
0answers
9 views

Why is a new home considered an investment instead of consumption? [duplicate]

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 (...
-2
votes
0answers
12 views

Intermediate Utility/Demand Exercise

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 $...
1
vote
2answers
28 views

Is there a way to eliminate shilling, spiting, and overbidding in second price auctions?

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 ...
0
votes
0answers
36 views

Book recommendation: first year economics course

Can anyone help me find a nice introduction (possibly popular economics) into the field of black market economics.
1
vote
0answers
21 views

supply-demand imbalance

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 ...
4
votes
1answer
46 views

Social Welfare and Pareto Optimality in a Bayesian Game

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(...
1
vote
0answers
12 views

How to adjust for inflation?

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 ...
-1
votes
0answers
17 views

Are these preferences consistent with the independence over lotteries axiom?

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 ...
0
votes
1answer
22 views

What is the reason behind the demand function of a perfect complement good?

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 ...
-2
votes
0answers
12 views

Utility function and optimal level of consumption

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 ...
-1
votes
1answer
33 views

Supply and demand equilibrium [on hold]

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?

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