economyst

If your are in a first-year macro economics course then... 1) yes government purchases can increase total income. 2) cutting taxes could achieve the same result, 3) But the tax cut would need to be larger because the tax multiplier is one less than the go...

19 years ago

1) No, 8.0 is the correct answer. 2) a strange and unlikely probability distribution. But lets go with the stated parameters. It states that ZERO percent of the population loses less than 6 lbs OR more than 12 lbs, but exactly evenly distributed between 6...

18 years ago

"appropriate" is a loaded and subjective word. Further, some government activities and programs could be widely viewed as appropriate up to a point. That said, we generally expect our federal government to: establish a monetary system maintain economic st...

18 years ago

First the denominator. There are 8*7*6*5*4*3*2*1 = 40320 ways the 8 friends could be seated. Now the numerator: There a 6 possible seats for Trevor (he cant have an end seat). For each of these 6 seats, the two brothers could be seated in 2 ways. (A on th...

18 years ago

You should start a new post instead of adding on to an existing post. That said, I would go with A Which of the following statements is true?? A) The value of a good may change over time. B)A highly valued good is always more expensive than a lesser value...

18 years ago

Below is a draft of my daughter's college scholarship application essay. I would appreciate if a few of the Jiskha gang could review and critique. Many thanks in advance. Scholarship Essay “What do you want to be when you grow up?” This is one of those qu...

16 years ago

1) fill C from A -- A=5, B=0, C=3 2) fill B from C -- A=5, B=3, C=0 3) fill C from A -- A=2, B=3, C=3 4) fill B from C -- A=2, B=5, C=1 5) fill A from B -- A=7, B=0, C=1 6) fill B from C -- A=7, B=1, C=0 7) fill C from A -- A=4, B=1, C=3 8) fill B from C...

16 years ago

huh??

18 years ago

I'n not sure I fully understand your question, but let me take a stab. The likelyhood of a care being warranted and registered is 80%*%90 = 72 = 0.72 Ergo, the likelyhood of having a problem is 0.28 So, with 50 cars you would expect to find .28*50=14 prob...

18 years ago

Last week, in big financial news, the Fed cut the discount rate, an expansionary monetary policy.

18 years ago

I think I see what you are after here; I think you are trying to find the speed definition of "slow" 2 out of 150 is .0133. That is 1.33% of drivers are slow. Ergo, 1-.0133=.9866 are not slow. Look up .9866 in a normal distribution table (probably found i...

18 years ago

An EXCEL spreadsheet is very helpful for these types of problems. Just set it up. eg., the balance formula (no extra payments) is: B1 = (B0-P)*(1+.08/12)

18 years ago

(1/1000)*500 + (999/1000)*0. = ?

18 years ago

see Mathguru's response to darius, who posted the exact same question.

18 years ago

1) seems to me, "a 40% chance of rain" is already expressed as a probability value. 2) I get 3/16 also.

18 years ago

You need to provide more information here. e.g., what was the question that mary answered?

18 years ago

I am not an accountant; so I tend to avoid questions that apply certain accounting principals. That said, concepts in most disciplines can be understood with simple common sense. Don't make things more complicated than they really are. Second, don't panic...

18 years ago

Think it through and apply simply supply and demand. Draw a world market for yen in terms of dollars. That is, put dollars on the Y-axis, yen on the X-axis, and draw supply and demand curves. Draw another world market for dollars in terms of yen. The rela...

18 years ago

Sure, what's your question? Note that we volunteers on the Jiskha site are here to help you guide your thinking. So before you post, do a little research first. And include in your question, some idea about what you think the answer might be.

18 years ago

At equilibrium, Pd (price demand) = Ps (price supply), and that Qd=Qs. So, 12.4-4Q=-2.6+2Q. Solve for Q: 15.0-4Q= 2Q 15.0 = 6Q (15/6) = Q

18 years ago

Hummmmm, I don't think you want to do that! P=12.4-4Qd could be rearranged, using simple algebra, as Qd=-(P/4) + (12.4/4)

18 years ago

At equilibrium, Pd (price demand) = Ps (price supply), and that Qd=Qs. So, 12.4-4Q=-2.6+2Q. Solve for Q: 15.0-4Q= 2Q 15.0 = 6Q (15/6) = Q plug this Q into one of the original equations to get equilibrium P

18 years ago

Think about why similar goods cost different amounts. -- Is there some level of service or services involved? -- Is location a factor? (e.g., one seller is next to a major highway or railroad) -- Is financing typically involved? -- What about legal protec...

17 years ago

Opportunity cost, for an individual, will change if relative prices change. E.g., for me, the opportunity cost of a Big Mac is about 3 double cheeseburgers. What would happen to my opportunity cost if the price of Big Macs changed, but cheeseburgers remai...

18 years ago

Whats your question?

18 years ago

For many people, eating something else

18 years ago

First of all, Nash Equilibrium analyses are pretty advanced stuff. I understand the basics. However, I could be out of my league with anything advanced. Especially if you want to apply some differential function (calculas) to possible responses as you sug...

18 years ago

So, what is your question?

18 years ago

Well, if all you know are the length of the sides, you need more information to determine the height. Perhaps an angle?

18 years ago

getting all incorrect is .75^17 = .0075

18 years ago

Well, 2/19=8/76. So the denominator is always 76. The numerator goes from 8, 27, 46, 65, a change of 19 each time. Take it from here.

18 years ago

1) I would find a third country where the currency tends to move in an opposite direction. 2) think creatively. They are a myriad of remedies to deal with a trading partner that does not always act as one expect it should. International law and courts dea...

18 years ago

Let x be the speed (mph) of boat 1. The spead of boat 2 is x+4. Now then, regardless of the relative speeds, the sum of the two boats travel is 9.8 miles. They travel this distance in .7 hours or 9.8/.7= 14 mph. So, you have x + (x+4) = 14 or: 2x+4=14 or...

18 years ago

I remember how to do this as "one-to-one" mapping problem, which can be solved graphically. Let me try to solve with calculas and algebra. CAVEAT EMPTOR - let the buyer beware. First its MUx/Px=MUy/Py or MUx/MUy = Px/Py. MUx,MUy are the first derivitive o...

18 years ago

This is a standard monopoly model question. (JALT acts like a monopolist). So, find the point where marginal cost (MC) = marginal revenue (MR). MC is easy. its the $4000 fee paid to Harvey. Total revenue is P*Q = 5000Q+40Q^2. Marginal revenue is the first...

18 years ago

see my answer to your other posting of this same question.

18 years ago

see my answer to your earlier post.

18 years ago

My bad, I re-get Q=12.5. take it from here.

18 years ago

For these types of problems, I like drawing a probability tree. That said, I really don't understand your question. With 3 babies, at least 2 will be of the same sex (BBG or BGG) possibly all 3 are the same sex (BBB or GGG). Could you clarify?

18 years ago

Expand the denominators. y^2-49 = (y+7)(y-7) and y^2-2y-35 = (y+5)(y-7) Take it from here.

18 years ago

hint: what if you multiplied one of the terms by (-1/-1)

18 years ago

i would go with b)

18 years ago

I don't understand your Utility functions. If I read your post, literally, then: If Fred has 1 peaches and 10 oranges, his utility is same as if he had 9 peaches and 10 oranges. The utility for both mixes is 10? This does not make sense.

18 years ago

Because of "externalities" the market is unable to allocate optimal amounts of driving or street lights. In a) a person personally bears a very tiny cost due to the auto pollution he produces. However, everybody else must bear this cost as well. The cost...

18 years ago

So, do a little research, then take a shot. I or others will be glad to guide your thinking.

18 years ago

Let Z be income = Px*X + Py*Y You could say: Minimize Z=Px*X+Py*Y subject to the constraint that X*Y=20 or you could say: Maximize U=X*Y subject to the contstraint that Px*X+Py*Y=20

18 years ago

Hummm. The only advice I can give you is that the forward discount rate tells you what the market thinks the devaluation will be.

18 years ago

Let P be his annual investment. You want $1M = P*(1.15)^40 + P*(1.10^39 + ... P(1.15) = 40P* sum((1.15)^i) So, with your hand calculator, enter 1.15 -store, *1.15 Mem+ *1.15 Mem+ ... Take it from here.

18 years ago

So the loan (B0) was 150*.8 = 120K The balance after 1 year and 1 payment would be B1=B0*(1.08)-P. B2=(B1*(1.08)-P = B0*(1.08)^2 - P*(1.08) - P .... B15 = B0(1.08)^15 - sum(P*(1.08)^i) Solve for the annual payment P such that B15=0. An Excel spreadsheet c...

18 years ago

The coach could expect to receive over the next 4 years is: 225000*(1.08)+225000*(1.08)^2+225000*(1.08)^3+225000(1.08)^4 To get the present value, divide the first term by (1.12), the second term by (1.12)^2, the third by (1.12)^3, and the fourth by (1.12...

18 years ago

a) Demand is Q=3500-2P. If P=1500, Q becomes 500. Since there are 3 countries, Total Q=1500. b) Total revenue is P*Q = 1500*1500= c) Price elasticity is (%change in Q)/(%change in P). So, if P rises by, say 1% to 1515, then Q (in a country) drops to 470,...

18 years ago

P=875 is the price that maximized total revenue. Plug this P into the original demand Q=3500-2P to get the quantity.

18 years ago

First b) Always, always, always -- maximize profits where MC=MR. In Europe, MR is 10-2Qe. As MC=2, then 2=10-2Qe. Solve for Qe. Repeat for US, cept MR=20-3Qu Now then a gets a little tricky as there is a kink in the demand curve. For P above 10, the combi...

18 years ago

Assume all of one's income is spent on the two goods. Hint: If a good is elastic and price goes up by, say, 10%. Do one spend more dollars on that good or less dollars.

18 years ago

Think it through and then take a shot.

18 years ago

Hummm. This firm should act like a monopolist. Your P=15 and Q=60 are what the monopolist would do sans any government intervention. With a price cap below what the monopolist would charge, simply plug 14 into the demand equation and solve for Q. Total re...

18 years ago

Foreigners using US health care increase the share of GDP by the health care industry

18 years ago

Do a little research, then take a shot. Hint: go with A

18 years ago

As a tie breaker, I would join with mister and go with A

18 years ago

a) calculate the present value of the investment. Since this requires a rate of discount (r), which you do not provide, just show the formula. The PV of the investment is 10000*(1 + (1+r) + (1+r)^2 + (1+r)^3 + (1+r)^4)) for b) increase a) by 10%

18 years ago

It looks like you have not provided the full problem.

18 years ago

Do a little research, then take a shot. Hint: Draw a picture of a natural monopolist; (Demand and MR curves, and AC and MC curves). The defining characteristic of a natural monopolist is that AC is declining for most (all) of any likely output. If AC is d...

18 years ago

I suggest that you use the methodology suggested by Mathguru in your next post.

18 years ago

I agree with your methodology and answer.

18 years ago

For B) First, if the firm faces a downward sloping demand curve, then the firm has some monopoly power -- Use the general monopoly model to figure your solutions. While true that you don't know what costs are, you can be certain, at least, that marginal c...

18 years ago

do a little research, then take a shot. Hint: say the price of palladium doubled, how much less passadium be used? I can think of at least two reasons.

18 years ago

Do a little research, then take a shot. Hint: accounting profit does not take into account opportunity costs. Hint 2:, fixed costs are costs the firm must pay regardless of output.

18 years ago

take a shot, what do you think? Hint. With the given constant returns to scale, and that all labor and capital can be purchased at constant prices, the TC 'curve' should be an upward sloping line, and the MC and AC curves should be flat lines.

18 years ago

Since there is only one variable given, I would have plenty of doubts. e.g., what if the good hunter charges $300 per day while the lesser hunter charges only $100. Or, what if I have all day and only want one deer. So, I would answer 'no'

18 years ago

Unlike supply, the industry-wide demand curve is NOT the sum of the demand curves faced by each individual producing firm. The industry-wide demand curve is the result of summing individual consumer's demands

18 years ago

.80*.10 + .20*.18 = .116

18 years ago

your a) and b) look correct. For c) you are almost there. You have Ln = dTUn/dXn - LambdaPn The first term to the right of = is MUn. Also, at a maxima, the whole term is zero. So you have MUn - LambdaPn=0. Thus, MUn = LambdaPn. This is true for all goods....

18 years ago

Total revenues are 5.0, total costs are 4.5, so accounting profit is $500,000 However, Bob and Jane, while likely working just as hard before, gave up $250,000 in wages. Add to this the $50,000 in lost interest income. So, economic profit is 500,000 - 300...

18 years ago

The firm could fire one worker -- production goes down by 40 and use the savings to buy $20 worth of capital -- output goes up by 80, for an overall net gain of 40. Profit is maximized when MPk/Pk=MPl/Pl (MP - is marginal product, P is the input price)

18 years ago

I would characterize payments to the subcontractors as variable costs, NOT fixed costs. Lease Payments and Overhead are definately fixed costs. I would count advertising as a fixed cost (as it was purchased at the start of the year). However, one could ar...

18 years ago

Use algebra then take a shot. Hint: a surplus occurs when Qs>Qd, a shortage occurs when Qs<Qd, and equilibrium is when Qs=Qd. Plug the various prices into P and solve.

18 years ago

I would think a counter-offer would be best.

18 years ago

price elasticity is (%change in Q)/(% change in P). Here Q is the number of jobs and P is the price of labor aka the wage rate.

18 years ago

To move from a deficit to a balanced budget, lawmakers must raise revenues and/or lower spending. Period. Not only do taxes raise revenue, governments also collect money from fines, penalties, and user fees. (Although, by comparison, these are tiny). And...

18 years ago

let x be the first integer. 2(x+2) = 3x-13. Solve for x

18 years ago

did you mean, 'what is the slope of y=4x+2' ??

18 years ago

First, you have not provided a ounces cutoff value for "underweight". Second, take a shot -- what do you think. Hint -- think normal distribution and look a the number of standard deviations away from the mean that coincides with .5%

18 years ago

Total revenue, with 2500 sales, is 150,000. Ergo, price per unit is 60. Variable costs per unit is 90,000/2500 = 36. So break-even is TR=TC which is 60*X = 300,000+36*X. Solve for X

18 years ago

an EXCEL spreadsheet is very useful for these types of calculations. PV = sum[ 100./((1.+r)^i) ] where i goes from 1 to t. take it from here.

18 years ago

Price elasticity is calculated as the (%change in quantity)/(%change in price). Substitute income for price and you would have income elasticity. Substitute the price of some other good and you would have a cross-price elasticity, etc. We say something is...

17 years ago

Take a shot, what do you think. Hint: In general, price taker's do not have long run economic profits. Hint 2: be sure to consider opportunity costs to firms.

17 years ago

I agree with all of your answers.

17 years ago

I agree with all of your answers for A,B,C, and E. For D, I must abstain. I have never seen the words "cyclical" and "noncyclical" to describe the income elasticities of goods. In my day, a good with an income elasticity greater than one was a superior go...

17 years ago

In Excel In A1 enter 365 In A2 enter +A1-1, copy A2 to A3...A365 In B1 enter +A1/365 copy B1 to B2...B365 In C1 enter +B1 In C2 enter +B2*C1 copy C2 to C3...C365 and you are done, Cell C365 has your answer.

17 years ago

always always always, MC=MR. First rearrange the demand function to be P=f(Q). That is P=33.33 - Q/3 Now then Total revenue is P*Q. So TR=33.33Q -(Q^2)/3 MR is the first derivitive of TR. So MR=33.33 - (2/3)Q MC is the first derivitive of TC. So MC=(1/2)Q...

17 years ago

oops, my bad algebra. I divided by 3 instead of multiplying by 3. So, P should be P=300 - 3Q. But follow the same methodology as before starting from here.

17 years ago

Im stuck. I get a result where either the wage rate or the price of capital is negative. (I presume Min(1/3K,L) means the minimium of (1/3)*K or L). So, to produce 1 more unit of Qa, the firm must use 3 units of K and 1 unit of L. That is MPa=3K+L. Simila...

17 years ago

I get firm A using 20 L and 10 K, firm B using 20 L and 20 K.

17 years ago

do a little research, then take a shot. What do you think?

17 years ago

take a shot, what do you think?

17 years ago

Take a shot, what do you think. Start with a simple supply/demand diagram then shift the curves as you think. e.g., closing a factory would shift the supply curve inward.

17 years ago

Use simple algebra, and start with an example. Say, initially, 1 dinar = 1 dollar. Then the dinar devalues by 45% so that 1 dinar = .65 dollar. With this, how many dinar's is 1 dollar. Well 1 dollar / .65 = 1.54. So, the dollar appreciated against the din...

17 years ago

oops, sorry stupid mistake. if the dinar devalues by 45% that means 1 dinar = .55 dollars. Take it from here.

17 years ago

Take a shot, what do you think. Hint: price elasticity is (%change in quantity demanded)/(%change in price)

17 years ago

Because of the recession, less people are spending money on books. That is, because of the recession, at any given price, less books will be demanded -- the demand curve shifted inward. Because fo the recession, more people are willing to work. So, you ca...

17 years ago

If wages are flexible downward, I agree. More willing workers means the factory can employ all the workers it needs at a lower wage rate.

17 years ago

I presume that U=($)^(1/2) = sqrt($). Calculate the expected utility under both choices. U1 = .50*sqrt(46000) + .50*sqrt(14000) U2 = .25*sqrt(46000) + .50*sqrt(30000) + .25*sqrt(14000) Take it from here. BTW, not playing at all gives the highest expected...

17 years ago

Since this is at least the second post of this question, I think I better answer it. How is your calculas. Mine is a bit rusty. But here goes. (I hope there are no typos below). Let w be the price of labor (L), z be the price of capital (K). (Let y be the...

17 years ago

Whew. when I first read the problem I thought you were trying to find the probability that ANY two pairs were together. But, as I reread the question, you are looking for the probability that ALL pairs are together; much easier. Choose the first pair to l...

17 years ago

1) At least some criminals are rational decision makers, who respond to price and price changes. If the "price" imposed on crime (that is the punishment imposed for getting caught) goes up, we would expect criminal behavior to go down. 2) the probability...

17 years ago

always always always, MC=MR. First rearrange the demand function to be P=f(Q). That is P=300 - 3Q Now then Total revenue is P*Q. So TR=300Q -3(Q^2) MR is the first derivitive of TR. So MR=300 - 6Q MC is the first derivitive of TC. So MC=(1/2)Q MC=MR - use...

17 years ago