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Economics Questions and Answers

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Answering economics questions may become a significant problem for many students at a certain point in their education process. You may have a short economics question that seems not so hard and time-consuming, but when you finally get to do it, you realize that it is more complicated than it looks, and Google search is not helping at all. There are a few websites that offer economics questions and answers for free, but they do not always provide solutions to the particular problems you have. If you need assistance with your economics homework problems or need answers to economics worksheet, test or quiz questions, be it multiple choice or free answer questions, Assignment Expert will be glad to provide it. We offer professional help with questions in a variety of economics topics you may find confusing or difficult to comprehend. Ask your economics question here, and our economics experts will answer it for free. If you need a solution to the entire set of questions or assistance with an economics project, order now, and our economics experts will help you for a reasonable price.

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Since firms operating in a perfectly competitive market can sell as much as they produce at the market price, they should produce as much as they can. True or false.
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Assume a perfectly competitive industry where the firms are identical, each with U-shaped short run and long  run  average  cost  curves.    In  the  short  run,  consumers  bear  none  of  the  burden  of  a  “per  firm”  tax,   while in the long run, consumers bear the entire burden. True or false.
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how does s consumer react to the changes in both price and income of a normal and superior good in the likes of substitutability of both exported and imported goods.
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True or False:

Assume a perfectly competitive industry where the firms are identical, each with U-shaped short run and long run average cost curves. In the short run, consumers bear none of the burden of a "per firm" tax, while in the long run, consumers bear the entire burden.

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HOW DOES ECONOMIC CONSUMER REACT TO CHANGES IN BOTH PRICE & INCOME OF A NORMAL & SUPERIOR GOODS IN THE LIKES OF SUBSTITUTABILITY OF BOTH EXPORTED & IMPORTED GOODS USING GAME THEORY
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(a) Given that money supply is KSh 1400 millions, autonomous consumption is KSh120 million, while the responsiveness of consumption to changes in disposable income is estimated to be 80% by the ministry of planning. Aggregate autonomous investment is ksh 200 million investment while one % increase in interest rate changes investment by KSh10 millions. The government collected KSh 200 million as tax revenue and wishes to increase expenditure by 10% above the revenue collected. The transactionary and precautionary demand for money function is expressed as mt/p=0.1y while the speculative money demand ms/p is -100r .
(i)Solve for equilibrium real output and equilibrium interest rate
(ii) What is the effect of the new expenditure plan impact on income and consumption?
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Consider the problem of a household that will earn $I during its working life – the present – and values consumption goods both in the present (Cp) and during its retirement years – the future – (Cf). Suppose the real after-tax interest rate between the two periods is “r”.
(a) Write out the equation for the household’s budget line and illustrate it in a diagram with Cp on the horizontal axis and Cf on the vertical axis. Identify the intercepts. What is the relative price (opportunity cost) of Cp? Identify it on your diagram.
(b) Suppose the household’s preferences are such tha tit chooses positive consumption in each period. Illustrate this choice with an indifference curve and identify the level of saving in your diagram. Comment on the household’s consumption pattern over time versus its income-earning pattern.
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Sara spends her entire weekly food allowance of $42 on Zinger and soft drinks. The price of a Zinger is $2, and the price of a soft drink is $1. Sara purchases 12 Zingers and 18 soft drinks, and her marginal rate of substitution between Zingers and soft drinks is 1. Is this the optimal consumption of Sara? Explain.
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Consider the problem of a household that will earn $I during its working life – the present – and values consumption goods both in the present (Cp) and during its retirement years – the future – (Cf). Suppose the real after-tax interest rate between the two periods is “r”.

a) Write out the equation for the household’s budget line and illustrate it in a diagram with Cp on the horizontal axis and Cf on the vertical axis. Identify the intercepts. What is the relative price (opportunity cost) of Cp? Identify it on your diagram.

b) Suppose the household’s preferences are such that it chooses positive consumption in each period. Illustrate this choice with an indifference curve and identify the level of saving in your diagram. Comment on the household’s consumption pattern over time versus its income-earning pattern.
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(ii) What is the effect of the new expenditure plan impact on income and consumption?

(iii) What is the effect of monetary policy in an economy where capital mobility is perfectly elastic?
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