Government consumption in our model is simply a waste that

Assignment Help Econometrics
Reference no: EM13378652

Government consumption in our model is simply a "waste", that is it does not affect anyone's utility or affect the production process. Use the Pareto Optimality framework. For each of them, solve the social planner's problem and show the equations that characterize the optimal allocations. Then argue how a change in G would affect the choices (consumption , labor supply and also output) by the social planner.

a. Government expenditures increase household's utility by another term in the utility function : log (G).

b. Government expenditures add to the existing private capital stock, so the capital stock of firms is now K+G.

Reference no: EM13378652

Questions Cloud

Bad debt and the allowance for doubtful accountsnormandale : bad debt and the allowance for doubtful accounts.normandale brewing and distilling companys post closing trial balance
Suppose you want to borrow 200000 to purchase a home you : suppose you want to borrow 200000 to purchase a home. you have found terms that include a 30-year note with a nominal
The average pricegallon of gass in july over the past 4 : the average pricegallon of gass in july over the past 4 years was 2.74 3.65 3.45 and 3.63. use linear regression to
Presented below are selected transactions at thomas company : presented below are selected transactions at thomas company for 2006. jan1st - retired a piece of machinery that was
Government consumption in our model is simply a waste that : government consumption in our model is simply a waste that is it does not affect anyones utility or affect the
Gwinnett paper company manufactures three products computer : gwinnett paper company manufactures three products computer paper newsprint and specialty paper in a continuous
U : ux1x2min3x1 6x2 ip1x1p2x2 p1 4 p2 5i 20a write the function for the indifference
Be you apparel inc is considering two investment projects : be you apparel inc. is considering two investment projects. the estimated net cash flows from each project are as
Assume that nominal income is 35000 and the price index is : assume that nominal income is 35000 and the price index is 1.20 in year 1. in year 2 nominal income rises to 38000 and

Reviews

Write a Review

Econometrics Questions & Answers

  What value wouldc2 have to be in the spne

Consider a Stackelberg duopoly game of quantity competition. Firm #1 is the "Leader" and firm #2 is the "Follower." Market demand is given by the inverse demand function p=1000-4Q.where Q=q1+q2 is the total output of the two firms.

  Is the owner of pats pizza restaurant minimizing cost

Consider the following information below for Pat's Pizza Restaurant and answer the questions below: Marginal Product of Capital: 4,000 Marginal Produce of Labor: 100 Wage Rate: $10 Rental Price of Pizza Ovens: $500 a) Is the owner of Pat's Pizza Rest..

  Determine the marginal revenue product function

Consider the following short-run production function ( where L =variable input, Q=output): Q=10L - 0.5 L2 Suppose that output can be sold for $10 per unit. Also assume that the firm can obtain as much of the variable input (L) as it needs at $20 p..

  What level of govt purchases is needed to achieve an income

in the keynesian cross, the consumption function is c=200+0.75(Y-T). planned investment is 100, govt purchase and tax are both 100. a)graph planned expenditure as a function of income. b)what's the equilibrium level of income.

  How much output should the firm produce in the short run

A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit.The firm's total costs are C ( Q) = 40 + 8Q +2Q2. a.How much output should the firm produce in the short run

  How much is jim duggans investment worth now

Jim Duggan made an investment of $10,000 in a saving account 10 years ago. This account paid interest of 5½% for the first 4 years and 6½% interest for the remaining 6 years. The interest charges were compounded quarterly.

  Solving problem on simple regression

The European Engine Corporation is a multi-national producer of small gasoline and diesel motors. European Engine Corporation has estimated the following cost experience for a new 3.5 hp engine over a sample of 122 observations,

  How much profit will the firm earn

w=10, r=25. The price of output is constant at $50. The production function is f(L,K) = L^.5K^.5.If the current capital stock is fixed at 1600 units, what is L* in the short run How much profit will the firm earn

  How much advertise cost

A monopolist has two types of customers.There are 100 of type A, who will each pay up to $10 for a single unit of the good, and 50 of type B, who will each pay up to $8 Neither is willing to purchase additional units at any price. If it must charg..

  What would have been the size of the multiplier

Suppose that an initial $40 billion increase in investment spending expands GDP by $40 billion in the first round of the multiplier process. If GDP and consumption both rise by $36 billion in the second round of the process, what is the MPC in thi..

  Consider an economy that produces only two goods fresh

consider an economy that produces only two goods fresh apricots and dried apricots. in this economy the technology of

  Classify the price elasticity demand as elastic or inelastic

In your project, address the following questions: Using the elasticity estimates in the table above, classify the price elasticity demand as elastic or inelastic. Explain your reasoning. Explain the implications of those classifications on tax rev..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd