# All Questions

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92 views

### Budget constraint when one of the goods can be sold

I'm studying for a microeconomics midterm and ran across the following question: A person consumes two goods, X and Y. The consumer's only source of income is given by the quantity of Y equal to ten,...
41 views

### Integer values in difference equations

In difference equations, the time variable $t$ can only take integer values. Does this imply that the variable $y_t$ must be considered a discrete variable?
865 views

### Profit maximisation and cost minimization [closed]

Does profit maximisation always imply cost minimisation ? And Does cost minimization always imply profit maximisation ? Can we prove both the results ??
49 views

### what mathematical function we can use to show house price changes in time? [closed]

I want to know if I have data of house prices of an area in time, what mathematical function will best fit it's graph? Or in other word, what function I could use that in time $t$, $f(t)$ will be a ...
155 views

### If the price of a good rises, will the demand always fall?

If the price of a good or service rises, the demand for that product will always fall? Apart from Giffen goods and luxury are there any other cases and what economic analysis supports or argues with ...
136 views

### Utility Maximization [closed]

Assume the utility function is $u(x,y,z)=y*min[x,z]$. The prices of all three goods are equal. The agent has an amount $M$ to spend on the goods. He has to choose one of the following schemes: A) Get ...
45 views

### Statistics: Understanding confidence interval [closed]

In R I have used lm()to fit a model. Then I use the confint() function to learn more about the slope. How to I understand the ...
821 views

### the difference between cobb-Douglass and leontief production technology [closed]

whatis the differences between cobb-Douglass and leontief production technology
347 views

### What consumer preferences exhaust the budget?

Suppose that a consumer has a complete and transitive preference relation over R+. Further suppose that the consumer faces prices p = (p1,p2,...,p) 0 and has ...
32 views

### Put option valuation [closed]

Does a European put have different fair values at time 0 in long and short position? If so, could you explain to my why? Instinctively, I think the answer is that there is no difference, since ...
37 views

### How is short-term borrowing by banks in the US performed?

I read a statement that one reason for persistent demand for US Treasuries is that US banks buy them because they can be used as collateral for acquiring short-term debt. I don't understand this. If ...
944 views

### Slutsky and Hicks approach in calculating SE, IE. Differences and interpretation [closed]

Level: Ungrad, Micro I have a task, http://imgur.com/a/JT4zB I have done some questions. While I can't understand the differences between Slutsky and Hicks approach. I get it theoreticaly, but I don'...
51 views

### As elasticity moves from negative to less negative, this causes prices to increase and profits to increase

Is there an intuitive way to understand why this is so. I want this explained in a layman's terms. I know negative means they are inversely related, which is what you would expect most items to follow....
229 views

### Consumer Theory (Finding demand function) [closed]

Here's the question that I really need help with: $$U(x,y)=(x^{0.5})+y$$ $MUx=\frac{1}{2x^{0.5}}$ and $MUy=1$, where $x$ is food, $y$ is clothing $Px$ is the price of food, $Py$ is the price of ...
14k views

### How do you know if a good is a complement or a substitute from given demand and supply functions? [closed]

QD1 = 190 - 2P1 - 2P2 QS1 = - 10 + 2P1 QD2 = 240 - 2P1 - 4P2 QS2 = - 40 + P2 Are these goods substitutes or complements?
6k views

### Calculate deadweight loss from cost and inverse demand function in monopoly [closed]

Consider a monopolist with inverse demand p = 200 - 2*q. The firm's total cost function is C(q) = 100 + 20*q. What is the deadweight loss of monopoly? To my understading, since we don't have any ...
94 views

### Housing bubble and financial crisis [closed]

Can anybody explain me easily what is housing bubble and how it cause financial crisis?
2k views

### We know that an equal and simultaneous increase in G and T will cause…?

My textbook says GDP will increase because all of the tax money will go into G, whereas only part of income goes into C. However, since savings = investment, wouldn't an increase in taxes (and ...
792 views

### Series 2013 US dollar bills [closed]

it's 2015 now but still, I can't find any USD bills of 2013 series. All my bills are 2009 series (not even 2009A series). I'm looking for 100 dollar denomination. what's the latest series for USD ...
977 views

24 views

### What is the negative impact of the World Food Programme on Africa’s economy?

Can a direct and temporary support such as donating food destabilise the economy of a country “in need”? It’s analogous to donating fish but not a fishing rod. If yes, why do donor countries continue ...
25 views

### UK imports of German cars

I had a suspicion that the UK might be a significant buyer of German cars within Europe, but I was astonished to discover these figures. See https://www.statista.com/statistics/587701/leading-import-...
8 views

### Does High rReal GDP per capita lead to overall high prices

Switzerland has higher Real GDP per capita level than USA an Britain but when I looked at data, Switzerland inflation rate is lower than those countries. Why?
50 views

### Does High GDP per capita lead to overall high prices

Switzerland has higher GDP per capita level than USA an Britain but when I looked at data, Switzerland inflation rate is lower than those countries. Why?
26 views

### What are ways in which world markets are zero-sum games?

Mercantilism is notorious for treating the world economy as a zero-sum game, wherein the local economy is supposed to benefit when regulations that operate to the detriment of foreign economies are in ...
103 views

### What is the highest living wage we can set using 1 trillion dollars from the Federal Budget?

Suppose we used “negative-tax income” which are added, in different amounts, to disadvantaged people depending on their “work income” to total a living wage. For a federal budget of a 1 trillion ...
28 views

### US Real GDP Growth Rate

I am interested in finding the quarterly real GDP growth rate of US and have found the following two measures from IMF International Financial Statistics: Which one should I choose (Dark Green or ...
16 views

### Monetary Approach to a depreciating currency

I am currently doing some research on the monetary approach to the effects of currency fluctuations on trade balance. It's been a while since I took an int econ class back in the undergrad, so I hope ...
26 views

### Can there exist something that subsidises that is not a subsidy

Is the set of subsidies exactly the same as the set of things that subsidise? Put another way: can there exist something that subsidises that is not a subsidy? Or are there two definitions of a ...
24 views

### MRTS question involving production function [closed]

My work out shows constant MRTS and also increasing returns to scale. I thought the answer was C as I only found increasing marginal products of labour and capital. I really don't see how the answer ...
19 views

### Which of the following firms can operate in a perfectly competitive industry? [closed]

This was a question in a test. I am looking for an explanation for the answer. Firm A's cost of producing output y > 0 is c(y) = 1 + y Firm B's cost of producing output y is c(y) = y(1-y)^2 Answer: ...
27 views

### Computing the competitive equilibrium given initial allocation

Suppose that there are two agents, 1 and 2, and two goods, honey (h) and lemon (l), and that the agents' preferences over these goods are defined by the following utility functions: u^1(x_h^1, x_l^...
29 views

### Is deprecation included in the value added approach?

I have been asked this question: "Folt Industries in 2017: It sold 1000 in sweaters, it imported 200 in wool from abroad, and purchased 200 in wool from domestic suppliers, it purchased a sewing ...
42 views

### Keynesian-cross analysis [closed]

I have a question from my textbook which is: Using the Keynesian-cross analysis, assume that the consumption function is given by C = 100 + 0.6(Y – T). If planned investment is 100 and T is 100, then ...
54 views

### What's the market equilibrium price for the used good?

On a perfectly competitive market, a buyer wants to buy a used good. He is willing to pay $30$ for a badly used good, and $60$ for a nicely used good. The seller is willing to sell a badly used good ...
143 views

### Marginal rate of substitution(yx) question

For utility function U= ln(x)+Y How do I determine if MRS(yx) is diminishing or not for this question? I got Mu(x)=1/x and Mu(y)= 1 MRS(yx)=Mu(y)/Mu(x)= 1/1/x = x Does this mean that MRS(yx) is ...
232 views

### Budget lines and Indifference curves: How do you figure where exactly you should draw the IC tangent to a budget line?

In Consumer Choice, we frequently encounter budget lines and indifference curves. For a given budget line, the optimization point is at the point where the indifference curve is just tangent to the ...
42 views

### Mixed Strategies — Does this lead to Nash equilibrium?

I have a simple payoff matrix defined here: https://prnt.sc/m6rp5m My question is: If both players play all 4 strategies with 1/4 probability, does that lead to nash equilibrium? I can't quite ...
117 views

### Would taxing money owned (as a share of purchasing power) be a better form of taxation?

Consider a nation whose money is entirely digital (like Bitcoin), but centralized (unlike Bitcoin). Furthermore, the total money supply is fixed, i.e. money cannot be created nor destroyed. To be ...
30 views

### Imperfect Price Discrimination profit per group

During imperfect price discrimination is it possible to determine profit per group. For example: Aggregated Cost function: C(Q) = 18*Q + 5; where Q = q1 + q2 Aggregated Demand (AD) for group 1: q1(...
178 views

### Evolution of GDP to debt ratio

Is it possible for an entity (say a state, e.g. USA) to keep a constant GDP/debt ratio with a monotonically increasing debt. I should probably mention that I am not an economist (physics and c.s ...
175 views

### Why is entrepreneurship a factor of production?

I'm a student at a faculty of economics. The professor asked us a question to which I still can not find an answer, which is why entrepreneurship is part of the production factors? I would be very ...
128 views

### Investor's optimization problem with risk aversion

Consider an investor with initial wealth $w$ and has to decide how to invest it. There is a riskless asset with rate of return $r$. The risky asset has return $x_i$ with probability $\pi_i$ for \$i=1,2,...