Consider an economy with three companies – Cotton Inc, Yarnie Co, and Shirts & Pants Co. Cotton Inc processes raw cotton and sells all of its output to Yarnie Co for $1,000. Yarnie Co then turns cotton into thread, and sells all of their balls of thread to Shirts & Pants Co for $10 each. Shirts & Pants Co can use 1 ball of thread to make 1 shirt and that shirt can then be sold for $15, or they can use 2 balls of thread to make 1 pair of pants, and that pair of pants can then be sold for $30. Suppose that Shirts & Pants Co sells 200 pairs of pants and 200 shirts. Given this information and holding everything else constant, what is the value added by each firm?

The demand and supply for Fijian dollars in the foreign exchange market is:

Demand = 30,000 – 8,000e

Supply = 25,000 + 12,000e

where e is the nominal exchange rate expressed as Australian dollars per Fijian dollar. The Fijian dollar is fixed at 0.2 Australian dollars. What operation do Fijian authorities have to undertake to maintain this fixed exchange rate?

The following unlabelled diagram represents an AD-AS model. Suppose the economy starts at point A and moves to point B. Which of the following things could have caused this move:

Consider a Cobb-Douglas production function with constant returns to scale where the share of capital income (α) is 1/3 and L=K=100. In addition, A=1. Keeping technology and capital stock unchanged, an increase in labour input by 6% leads to approximately which of the following?

The Morrison household has two children in childcare and they own a house and shares in the stock market. In 2020 they had a gross income of $195,000 and paid income taxes of $40,000. They received $15,000 in cash from the government to help with childcare costs (assume they pay no tax on this $15,000). Their consumption was $90,000. During 2020 the market value of the Morrison’s house increased from $1,980,000 to $2,100,000. The value of their share portfolio fell from $10,000 to $9,900. Which of the following figures is the best measure of the change in wealth of the Morrison household during the year?

Consider the following five people and businesses:

I. Angela injured herself at work and is no longer working. The government pays her a fixed dollar amount in disability benefits each week.

II. Arti has a just bought a house. She paid for the house by taking out a large mortgage.

III. Farmer’s Bank has given out large loans to dairy farmers.

IV. Christian is saving money to buy a house.

V. Yi is a retired gardener who has a pension that adjust with inflation. For example, her pension rises with inflation and falls with deflation. 

Which of the following statements is true?

The properties of discrimination and localization you tested in the lab are going to be useful in daily life for

In the figure of the structure of the ear, the stapes is indicated by the letter