Please help! Question 4 1 pts The University is considering the level of light t
ID: 1151445 • Letter: P
Question
Please help!
Question 4 1 pts The University is considering the level of light to provide at night on campus. Cynthia and Shirley are the only students who work on campus at night. Cynthia's marginal benefit for light is given by MBCynthia 50 5Q, where Q is the brightness of light; while Shirley's marginal benefit is MBShirley 10-Q. If there are no fixed costs, and the marginal cost of providing light is given by MC-12, then what is the optimal brightness of light for the university to provide? 10 7 0 4 None of the above. Question5 1 pts Suppose consumption increases by $100m, all of which is spent on imports. Thinking in terms of the expenditure approach to calculate GDP, then GDP will: Decrease by $100m Decrease by more than $100m. Increase by $100m Increase by more than $100m. Be unchanged.Explanation / Answer
4) Find the total demand as MB = 60 – 6Q. Since MC = 12, optimum Q is when MB = MC
60 – 6Q = 12
Q = 48/6 = 8
Select 8
5) This implies that imports are increased by 100 so GDP will decrease by 100. Select decrease by 100
6) Size of the labor force increases. This reduces the unemployment rate and increases participation rate. Select unemployment rate decreases and participation increases
7) Tax rate rises from 0 to 0.5 and multiplier is reduced to half of its value
M = 1/1-b(1-t)
Initially, M = 1/1-b. Next, 0.5M = 1/1-b(1-0.5) or M = 2/1-0.5b
This implies we have
1/1-b = 2/1-0.5b
1-0.5b = 2-2b
1.5b = 1
b = 2/3
Select 2/3
8) Unplanned inventory investment is positive when Y > PAE so select Negative at YL and positive at YH.
9) GDP per capita in China is 10/50 or 20% of GDP of Australia. In terms of PPP, it is 40 % larger in Australia.
10) Real GDP 2016 = 1000 + 1400 + 9600 = 12000. Real GDP 2017 = 1200 + 1260 + 10800 = 13260
Growth rate = (13260 – 12000)*100/12000 = 10.5%