Introductory Economics Assignment - Three Problem-Solving Questions. Question 1 - Australia and Canada have a free trade agreement in which, Australia exports beef to Canada. a. Draw a graph and use it to explain and ill ...
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Question: 1. (True) or X(False) 1. Opportunity cost is the cost for obtaining an opportunity. 2. Positive economics is an economic activity for positive results. 3. Beef and chicken are Normal Goods. 4. Peanut Butter and ...
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Question - Consumer choice problems (duality) II Individuals consume three breakfast goods - cereal q1, bacon q2 and eggs q3. Preferences are modelled by an indirect utility function v(p1, p2, p3, y) = y/ Root(p1(p2+p3)) ...
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Question - A firm has two variable factors and a production function, f(x 1 , x 2 ) = x 1 ½ x 2 ¼ . The price of its output is 4. Factor 1 receives a wage of w 1 and factor 2 receives a wage of w 2 . (a) Write an equatio ...
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Question - A. If the quantity demanded = 600 - 0.75 P, please show your work clearly in estimating the price elasticity of demand at a price of $220. Is demand elastic or inelastic at this price? B. If the quantity deman ...
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Question - Suppose that a consumer can earn a higher wage rate for working overtime. That is, for the first q hours the consumer works, he or she receives a real wage rate of w1, and for hours worked more than q he or sh ...
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Question: Suppose the price level in a particular economy equals 1.3 and that the quantity of real GDP demanded at that price level is $1,200. An increase of 0.1 point in the price level reduces the quantity of real GDP ...
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Question - The space below shows the budget constraint between food (F) and non-food consumption (X). This household has $800/month to spend on the two goods, the price of food = $4/unit and PX = 1. Label both axes and b ...
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Question: When using OLS, we assume that the errors are independent (i.e., not serially correlated) and normally distributed with constant variance (i.e., homoscedastic). These assumptions allow us to use the F and t dis ...
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Question - In this question, I will guide you through a simple AK model. The so-called AK model is a special case of the Solow Model. The production function is simply Y = AK so 1/3 for capital in the last question becom ...
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