How to calculate the effective rate of subsidy?

I know it the general idea is something similar to calculating the effective rate of protection (in the case of tariff rates) based on value added per unit.
But say, for example, that a car company imports its production factors for 50.000 and then sells the final product (the car) for 100.000. However, consider that the car is subsidized at 10% of the selling price, the actual price would be 110.000. So how do I calculate the effective rate of subsidy rather than the nominal one?

Answer: 
Good question that one. The general effect is similar but there are a few nuances to it that make it harder to explain.

How to find out if 2 goods are perfect substitutes from a utility function?

The uitility function is U = 8H +4B , where H is the hours spent watching hockey, and B is hours spent watching basketball.

The Marginal Rate of substitution of ice hockey for basketball is 2.

But my answer paper says that the goods are perfect substitutes. I dont understand how they came to that conclusion :S

Could you explain how I can use the marginal rate of substitution and the utility function to find out how the goods are substitutes?

Answer: 
The utility function is linear, and the MRS is 8/4=2. That means it will be no difference from one end against the other. There is no maximization which is subject on budget constraint. That is when H and B are perfect substitutes.

How to find Qty Demanded if price and a demand curve are given but not supply?

Alright, I have a graph that includes two demand lines for snow peas and olives and indifference curves for each demand line. The x-axis includes the quantity of olives and the y-axis includes the quantity of snow peas.

I solved for the price of the two individual goods but am wondering how to solve for Qd (or Quantity demanded) and Qd1 so I can solve a midpoint formula for the price elasticity of demand.

Thanks!

Answer: 
Your curve is called indifference curve. You can solve for olive and pea consume when you know the prices and income. You don't need any supply. Because you don't want to know about the equilibrium.

How to detemermine the independent variable and the dependent variable?

How to detemermine the independent variable and the dependent variable?

A researcher is interested in the relationship between the type of abuse a child is the victim of and the type of offense he commits in later life. What is the independent variable?

You are interested in examining the relationship between race being the victim of bullying. What is your dependent variable?

How do you tell which is which????

Answer: 
1. the type of offense has been caused by the type of child abuse. The first one is dependent and the latter one is independent variable. 2.The victim of bullying is dependent,and race is independent variable,because bullying is caused by race.

How to know if supply and demand is increasing or decreasing?

How can we tell if the supply and/or demand is increasing or decreasing in different situations (for example, when the interest rate rises, when personal income taxes are cut, when nominal GDP level increases, etc)? What's the relationship between supply and demand?

Answer: 
Supply and Demand have an inverse correlation relationship... this means when one rises the other falls. When you have a high supply.... you have a low demand... So you lower the prices to raise the demand. When you have a low supply... you (probably) have a high demand... So you raise the prices because people are willing to pay more. How can you tell in today's market? You can't. Only the person naming the prices knows whats going on behind the counter. The Consumer doesn't need to know... and probably never will. So don't' worry about it. Just remember out of all the things you mentioned... Supply and demand aren't the only things affecting them Interests rates rise are effected via context of the interest... say banking... your interest will be decided based on current market conditions. That way they can be certain that they will not end up regretting that payment Personal income tax's come from the government which are affected by politics. Politicians will pull strings with it to get elected if they have a chance to do so. Nominal GDP is affected by every little thing you can imagine.

How to convert old amounts into different currencies?

I want to calculate different amounts in Yen, Yuan, Euro and other currencies from 2007 to 2011 into dollars. Should I use historic rates and simply divide them? Or use a current rate? Given the different exchange rates at different times, will using historic rates be a better representation if I am using this for research.

Answer: 
very complex because of inflation r buying power $1,000 in 2007 might be $750 today currency exchange varies minute to minute even cost of living is bought, different foods, quality of cars etc they call economics the "dismal science" it is NOT real science like physics or chemistry. the results can never be predicted the "law of supply and demand" is NOT fixed but it can detect trends and make some logical prediction

How to work out price elasticity of demand without either the the quantity or price?

I know how to work out PED with all of the figures of quantity and price however i was looking and in some exam questions they dont give you either the figures for price or quantity and give you the elasticity and want you to work out with increase or decrease in revenue. I was taught how to do this ages ago but dont remember and revision guides dont teach this. I appreciate anyone that can help.

Answer: 
What you need to do is pick up an econ book and look for the Total Revenue Test. This is what you're talking about. And it'll explain how you get changes to revenue. Something I teach my micro students learned about when we covered elasticity.

How to use a Cobb-Douglas function to exhibit decreasing marginal productivity w/ increasing returns to scale?

I'm supposed to use a Cobb-Douglas production function as an example to show that it is possible to have decreasing marginal productivity of an input and yet have increasing returns to scale.

Please help!

Answer: 
a+b >1, a and b are production elasticity of factors, labor and capital.

How to draw an indifference curve when one good preferred over the other?

The only information given is that good x is 750g of sugar and good y is 250g of sugar. It is assumed that these are goods, and that more is better. How would you draw an indifference curve map to show preferences?

Answer: 
plot two points. x=1,y=0 and x=0,y=3. Connect them with a straight line. This is one indifference curve. B/c 1*750 is same as 3*250. Draw a few lines parallel to this one. That's your map.

How to imporve chances for being an economist?

Currently im a sohompore in college with a 3.3 GPA and an economics major. I also have a minor in international relations with a specification in middle eastern politics, history, and culture. Very shortly I will be earning my leadership certificate from my school.

I want to come out of school and get a good paying job, making as much money as I can. What can I do to improve my resume? I wanted to minor in mandarin but my school does not offer it. Any suggestions?

Answer: 
well, common cents might tell one to try for an internship with like a hedge fund or financial firm. to better understand the nature of the human psyche and improve economic reason, I might recommend considering and studying the nature of the stars, moon, Earth, Sun and Black Hole, but that might attract a whole host of devils to your bedside

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