Reference no: EM131439059
1) Consider a small community of 100 identical individuals who consume a private consumption good x and a public good z. Each individual's preferences are defined over the two goods as follow: Ui = 5xi + 2z^(1/2). The cost of producing z is Cz(z) = 200 +4z, the cost of producing x is Cx(x) = 100+x.
a) What would be the efficient provision of the public good in this community?
b) Find the market allocation guided by competitive equilibrium prices and identify the inefficiency of the "invisible hand."
2) Identify True or False and explain the economic logic under each statement.
a) The classical dichotomy implies that aggregate demand depends on neither the money supply nor the general price level.
b) The classical model implies that the sharp decline we have observed in the price of oil over the past six months is irrelevant for the determination of equilibrium output and input.
3) The closed-economy version of the Classical model: Y = F(K, L) C = C + a(Y - T), with C, a >0, I = I - βr, with I, β > 0, where C and I represent the exogenous components of consumption (C) and investment (I) respectively. Assume the factor inputs are fixed in supply, K = K , L = L, and that fiscal policy is also fixed: T = T and G = G
a) Predict the effects of an exogenous increase in consumption C on equilibrium output (Y), investment (I), and the interest rate (r).
b) How and why would your predictions change if consumption (C) also depends negatively on the interest rate (r)?
Consider the root causes of illicit drug use
: There have been many legislative attempts at controlling the use of illicit drugs (whether prescription-type or otherwise). Why, or why not, have these attempts been effective? In your response, consider the root causes of illicit drug use.
|
Framework of patient consumer preference
: What economic models explain the framework of patient- consumer preference in regards to healthcare services that were experienced?
|
Support your thesis statement
: Write the rough draft of your approximately 750-word paper. Include all of the elements as the final draft, as if you were submitting this draft for your final grade.
|
What kind of organizational structure does each company use
: What kind of organizational structure (Functional structure, product structure, customer structure, geographic structure or matrix structure) does each company use?
|
Market allocation guided by competitive equilibrium prices
: a) What would be the efficient provision of the public good in this community? b) Find the market allocation guided by competitive equilibrium prices and identify the inefficiency of the "invisible hand."
|
Make a scatter chart to identify type-curvilinear trendline
: Cost functions are often nonlinear with volume because production facilities are often able to produce larger quantities at lower rates than smaller quantities.5 Using the following data, apply simple linear regression, and examine the residual pl..
|
What programs or resources are available
: What are some of the social problems you have observed in your local community due to substance use related issues? What programs or resources are available?
|
Outlines techniques to improve your presentation skills
: Create a 10- to 15-slide Microsoft PowerPoint presentation that outlines techniques to improve your presentation skills. Format your assignment according to appropriate course level APA guidelines.
|
Aggregate expenditures model
: True or false? According to the Aggregate Expenditures model, at equilibrium GDP, saving is equal to planned investment and there are no unplanned changes in inventory.
|