Question

True, False, or Uncertain [48 marks - 6 marks each] Explain why each of the following...

True, False, or Uncertain [48 marks - 6 marks each]

Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important.

A4-5. Suppose the government funds the provision of a pure public good from tax revenue. The total burden to the economy of providing the good exceeds the amount spent on the good.

A4-6. A decrease in posted (nominal) interest rates necessarily means a decrease in real interest rates.
A4-7. At the end of 2016 the Canadian dollar exchange rate with the US dollar was 1.3030, while at the endo of

2017, the rate was 1.2494. The Canadian dollar depreciated against the US dollar over this time.

A4-8. Suppose an economy currently has a labour force of 10 and 2 unemployed workers. If a previously discouraged worker starts looking for job, the unemployment rate rises and the “unemployment problem” becomes worse.

Homework Answers

Answer #1

5 false. Infact public good will lead to benefits net of sacrifices. Even otherwise such expenditure raises demand by full amount and leds to multiplier effect. The benefits are more than costs in case of public goods

6 false. because inflation may fall more than nominal interest rate so that real interest rate rises or remains same

7 false. it appreciated since less units of Canadian dollars are now exchanged for 1 unit of American dollar

8 true because now he will be included in labour force. He is now unemployed and looking for jobs. Unemployed people rise by 1 and thus unemployment rises and unemployment problems becomes worse. Earlier unemployment was 2/10.while as now it is 3/11.the latter is larger

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain why each of the following statements is True, False, or Uncertain according to economic principles....
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A4-1. Suppose your roommate enjoys loud music and values this activity at $50/day. If you value peace and quiet at $30/day, the efficient solution is for your roommate to listen to the efficient solution is for your roommate to listen to the music. A4-2. Private markets will...
Explain why each of the following statements is True, False, or Uncertain according to economic principles....
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A4-3. A properly constructed tax on greenhouse gas emissions results in an efficient amount of emissions abatement and an efficient allocation of abatement across emission sources.​
true or false or Explain why each of the following statements is True, False, or Uncertain...
true or false or Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A5-1. The transaction of a consumer who buys a “meal-kit” sent to their home adds less to GDP than a similar consumer who goes out to a restaurant for the same meal. A5-2. When Canada legalized cannabis consumption it likely led to an...
TRUE/FALSE/ OR UNCERTAIN: Explain whether each point is true, false, or uncertain and use diagrams and...
TRUE/FALSE/ OR UNCERTAIN: Explain whether each point is true, false, or uncertain and use diagrams and equations to prove so if relevant. Based on the Solow growth model, different saving rates explain varying economic growth rates across countries we observe in the real economy. A competitive equilibrium of the Solow growth model is achieved only when the economy reaches the steady state. If the consumer’s preferences satisfies the “more is better” assumption, the indifference curves representing her preferences are necessarily...
True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start...
True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. a. Nominal interest rates are always higher than real interest rates. Answer b. If the lockdown measure due to a further...
Explain why each of the following statements is True, False, or Uncertain according to economic principles....
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A5-7. An economy with only price taking firms will have a horizontal short-run aggregate supply curve. A5-8. A given increase in aggregate demand has a larger effect on national income the less steeply do unit costs rise with increases in production.
Question 1: True, False or uncertain (16 marks) Explain whether each of the following statement is...
Question 1: True, False or uncertain Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. The quality and logic of arguments determine your marks. (4 marks each) The price of cars produced in...
Explain why each of the following statements is True, False, or Uncertain according to economic principles....
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. a. Suppose that, per unit of resources deployed, Ontario can produce 3 bushels of wheat or 1 bushel of corn, while Quebec can produce 1 bushel of wheat or 1 bushel of corn. Ontario has an absolute advantage in wheat production, but Quebec has a comparative advantage...
Explain whether the following statements are true, false, or uncertain.
Explain whether the following statements are true, false, or uncertain.a. “An increase in the number of employed workers always means a reduction in the unemployment rate.”b. “An increase in the unemployment rate always means a decrease in the economy’s participation rate.”
Question 1: True, False or uncertain (16 marks) Explain whether each of the following statement is...
Question 1: True, False or uncertain Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. The quality and logic of arguments determine your marks. (4 marks each) If the lockdown measure due to...