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1answer
27 views

How to calculate velocity of money when some people make long-term savings?

Bob gets paid every month and lives paycheck-to-paycheck, so for Bob's money velocity is 12 (assuming that there is nobody else in the economy). Al gets paid every two weeks and lives paycheck-to-...
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votes
1answer
37 views

Low oil price and impact

Today I read an artcicle about the falling oil price (maybe it'll go under 30$ per barel the next days). Why is this a bad news? Lower oil price can give an advantage for a higher productivity.
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votes
1answer
47 views

Minimizing consumption in a single market( Partial Equilibrium)

Let there be a good X where the optimal consumption is 0; i.e the social costs for any unit provided would always be greater than the utility surplus of the market. We know that prohibiting it( ...
-1
votes
1answer
26 views

Which is more economical with resources, an e-tick or a paper ticket?

I always get an e-ticket on my mobile, to save the environment and so on. But then I thought well, am I really saving trees? I have to give my phone a full charge in order that it doesn't run out ...
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votes
1answer
45 views

Why do some phones depreciate faster than other?

Based on evidence from reselling sites (eBay, Amazon etc.) we can observe a trend that iPhones on average depreciate far less and slower than for example Samsungs (or other phones that lose their ...
-1
votes
1answer
57 views

Derive the asymptotic distribution

Let $x_1, ..., x_n$ and $y_1, ..., y_n$ be two independent random samples from $X$ and $Y$. We have $µ_X = E (X ) > 0, µ_Y = E (Y ) > 0$ and $σ^2_X = Var (X )$ and $σ^2_Y = Var (Y )$. Derive ...
-1
votes
1answer
21 views

How to maximize total revenue on constant elasticy curve

So to maximize total revenue, we sell at the price on the demand elasticity curve where elasticity=1 right? Lets say on one curve, the elasticity throughout the curve is equal to 1.5? How much should ...
-1
votes
2answers
55 views

Do all prices just reflect absence of information?

In information economics, information has economic value because it allows an agent to make better decisions. For example if an agent needs to buy some good, he will benefit from knowing about the ...
-1
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2answers
70 views

How to derive the asymptotic variance from the sampling distribution of the OLS estimator?

The asymptotic sampling distribution, after taking plim, of the OLS estimator is given by $\sqrt{N}(\hat{\beta}-\beta) = E[X_iX_i^T]^{-1} \left(1/\sqrt{N} \sum_{I=1}^NX_ie_i \right) $ It must be ...
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1answer
57 views

A preference relation $\succ$ is defined as $(x_1,y_1)\succ (x_2,y_2)$ if $x_1>x_2$ and $y_1> y_2$

Does this satisfy completeness property? I need an intuitive explanation of this preference relation as well. I am confused about the way how this relation is defined. The commodity Y in the first ...
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1answer
43 views

Consumer's side and producer's side

GDP gives the picture from the consumers’ side, while GVA gives the picture from the producers’ side. By definitions of both GDP and GVA "the amount of goods and services PRODUCED in an economy in a ...
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votes
1answer
28 views

The effect of financing of government debt on the yield curve

Is it reasonable to expect that the US govt's financing of the growing budget deficit and US debt by issuing long term treasury bonds will push long term interest rates higher in the future? Shouldn'...
-1
votes
1answer
17 views

What is recession? Two quarters of -ve GDP or two quarters of slowing GDP?

I'm confused with the definition of recession. Is it two quarters of negative GDP growth , meaning GDP growing at -1% and -2% or GDP slowing to 2% and 1.5%.
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votes
1answer
46 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 ...
-1
votes
1answer
134 views

why pound is more overvalued than euro and usd?

Why British pound is more overvalued than euro and usd, even though these currencies(euro and usd dollar) are more traded than British pound?
-1
votes
1answer
225 views

Why do interest rates move together?

Why do interest rates (mortgage, LIBOR, Treasury yields, etc.) move together? What is the fundamental reason behind that? From my understanding, what drives it is the Federal Funds Rate, which is the ...
-1
votes
1answer
28 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 ...
-1
votes
1answer
95 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 ...
-1
votes
1answer
41 views

Ceo hobbies and company stock price index in S&P 500

Where can I obtain data on hobbies of CEOs of S&P 500 companies?
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votes
1answer
29 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: ...
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votes
1answer
76 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^...
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votes
1answer
34 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 ...
-1
votes
1answer
244 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 ...
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votes
2answers
55 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 ...
-1
votes
1answer
452 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 ...
-1
votes
1answer
618 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 ...
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votes
2answers
43 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 ...
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votes
1answer
126 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 ...
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votes
1answer
35 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(...
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votes
2answers
193 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 ...
-1
votes
1answer
323 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 ...
-1
votes
1answer
142 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,...
-1
votes
1answer
69 views

Anti Piketty Confusing Movement Along Demand Curve with Shift

In Anti-Piketty, the author's claim that the statement "If the supply of any good is insufficient and it's price is too high, then demand for that good should decrease which should lead to a decline ...
-1
votes
1answer
69 views

Cons of printing more money but not injecting in the system directly

So I don't know if this might be the right place, if it isn't I'd appreciate if anyone can link me to the right place. Anyways here is the question. I've read up on what are the cons of printing more ...
-1
votes
1answer
205 views

Pareto-optimal allocations in the Edgeworth box

If agent A has utility function $u(x_1, x_2)$ and agent B has utility function $v(x_1, x_2)$, what are the equation(s) that characterize the Pareto-efficient allocation of goods in the Edgeworth box? ...
-1
votes
1answer
66 views

Would a very cheap renewable energy source be harmful economically?

This question is not on whether these devices work or not but so much as if they did work. What if electricity can be made so cheap that everyone could afford it ti the point there was no demand for ...
-1
votes
1answer
133 views

Equilibrium income in Simple Keynesian Model

I could not understand how to analyse the effect of the given situation in this question on government's expenditure and income. If the budget is balanced, the use of calculus technique also didn't ...
-1
votes
1answer
180 views

Conducting an experiment to calculate empirical elasticity with very small price changes

Let's say I want to conduct an experiment where I randomly vary the price of a product up or down by a small amount. Let's say I want to understand the price elasticity of demand for online shoppers ...
-1
votes
1answer
2k views

Inferior and normal good and the change in price of those goods

In general, We know that if a good is normal, then as your income increases, then demand of that good increases as well as price is fixed. Similarly, if a good is inferior, then as your income ...
-1
votes
1answer
55 views

Indiference between two lotteries

Suppose that a binary relation satisfies only: Independence axiom: $L≿L′⟺α\circ L+(1−α)\circ L′′≿α\circ L′+(1−α) \circ L′′$ Reduction to simple lotteries: For all $g$, $g~g'$, $g'$ is the simple ...
-1
votes
1answer
42 views

Economic impacts of Migration on the Labour Market

Many natives don't prefer foreigners taking their jobs, is it actually a bad thing for the countries economy?
-1
votes
1answer
29 views

Productivity issue

Could someone help with the following? Company produces products of daily demand. It employs workers In number of 12 people (HER) Wages of workers. The costs of hiring and firing are 25 per employee, ...
-1
votes
1answer
40 views

Will a consumer be more, or less willing to give up a commodity (for the other) for which they have been substituting another? [closed]

Statement: "Indifference curve analysis is based on the assumption of diminishing marginal rate of substitutiins. This means that as the consumer substitutes more and more of one commodity (say X) for ...
-1
votes
2answers
66 views

Calculate real GDP

Assume that the annual growth GDP per capita is 2%, how much will the real GDP per capita increase in 10 years. I know the manual way is to take 2 percent every years. For example after 1 year would ...
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votes
1answer
106 views

Stochastic process difference equation: stationary distribution

How can I find the stationary distribution (as t goes to infinity) of stochastic difference equations in the form: $x_{t+1} = a*x_t + b*N(0,1)$ where N(0,1) is a standard normal pdf I have ...
-1
votes
2answers
60 views

How much of an assets price change is due to speculators and functional buys/sellers

If (for example) a heavily traded asset like crude oil has a price move of x, how much of that is influenced by functional buyers/sellers and how much by speculators? Let's say x is +100, there are 8 ...
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votes
1answer
42 views

How Mark Zuckerburg (or any other company founder) got valued at billions?

I read that Facebook got worth at billions after IPO, but how did this brought money to Mark himself. And did Facebook earned before IPO, or after IPO. I think that after facebook earns from revenue ...
-1
votes
1answer
94 views

Inflation and stock price

I have indicated my understanding and problem on the attached image below. I'm a bit confused on the impact of inflation on stock price. As increase in inflation would cause nominal interest rate to ...
-1
votes
1answer
190 views

How to derive a Nash equilibrium pure strategy in a linear Cournot Model [duplicate]

Suppose there are $N$ firms each with the same positive marginal cost $c$. How would I go about finding a pure strategy Nash Equilibrium for the firms? Suppose the Inverse Demand curve is defined: $p=...
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votes
1answer
49 views

Finding out an optional consumption without calculation [closed]

I need help with this task. The utility function is U(a;b)=3a+2b. The prices for the goods a and b are equal. Explain what an optional consumption of the consumer would be without calculating. ...

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