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Recently Asked Economics Assignment Help, Questions and Answers
1. Demand and Supply in the Housing Market (20%)
Suppose the demand function for squared meters of housing in Oslo is a standard downward sloping curve, while the supply function is a standard upward sloping curve.
(a) Draw the equilibrium in the Oslo housing market in a diagram. Explain what you show on your diagram.
(b) Suppose housing is a normal good and that income of the consumers increases sub- stantially. What happens to demand, supply, the equilibrium price and quantity? Show this on a new diagram and explain what happened.
(c) Show and explain how your answer to question “b” changes if supply was perfectly inelastic.
(d) Show and explain how your answer to question “b” changes if supply was perfectly elastic.
(e) We can formally represent the demand curve for housing in Oslo as follows D = −0.2Po + 0.1Ps + 0.5I, where D is quantity demanded, Po is the price per squared meter of housing in Oslo (downtown), Ps is the price per squared meter in Oslo’s suburbs, and I is average income of the consumers. Explain what happens to demand for housing in Oslo when Ps increases an...
2. Behavior of consumers in the market for water (15 %)
(a) The residents of Norway consume water (W ) and spend the rest of their income on other goods (O). The price of water is PW , while the price of other goods is PO. The income of a typical Norwegian is I. Write down the budget constraint for this typical 1 Norwegian and explain what each of the components mean and why this represents a budget constraint.
(b) Draw a diagram with an initial budget line, putting water on the horizontal axis. Use a standard indifference curve with a smoothly declining marginal rate of substitution to illustrate an initial optimal consumption choice for a typical Norwegian. Label this initial consumption point as “a,” and explain why it represents the optimal consumption choice.
(c) In the year 2040, Belgium is plagued by severe droughts and Norway starts exporting water to Belgium. Illustrate in your diagram the impact of the resulting increase in the price of water for your Norwegian consumer, noting that water is a normal good. Label your new consumption point as “b.” Explain how and why the Norwegian consumer changes their c...
3. Production of taxi rides (15%)
GlobalTaxi runs taxi services around the globe. GlobalTaxi uses two inputs in production: capital K and labor L. Capital has a rental cost of r, while labor is paid a wage w.
(a) Derive the expression for GlobalTaxi’s isocost function with labor on the right-hand side, and explain what it means.
(b) Explain what happens to the slope of the isocost function when the wage w increases. How will an increase in w typically affect the choice of inputs for a company that has a smoothly declining marginal rate of technical substitution? Why?
(c) Let’s fast forward to the year 2030, where GlobalTaxi is now producing taxi rides with the following production function for offering a certain number of taxi rides T : T = H + D, where H is a taxi ride delivered by a Human driver, and D is a taxi ride delivered by a Driverless car (or robot driver). Hold the number of taxi rides T constant. 2 • Derive an expression for the number of driverless taxi rides D needed to reach the number T of taxi rides, given a certain number H of human taxi rides. • What do we call the expression you derived? &...
4. Pricing in the electricity market (25 %)
Let households’ demand for electricity be given by q = 100 − 5p. The price of electricity at power exchanges is 2, so the marginal cost of power suppliers is 2.
(a) Compute the equilibrium price and quantity if the electricity market is perfectly competitive.
(b) With only one supplier of electricity acting as a monopolist, compute the equilibrium price and quantity.
(c) Compute the consumer surplus, producer surplus, and social surplus in 4a) and 4b). In 1990, Norwegian authorities liberalized the power market by splitting the companies re- sponsible for the power grid and the companies selling the actual electricity to households. After this act, Norwegian households could freely purchase electricity from the power sup- plier of their choice, whilst remaining locked to their local power grid operator. Any firm could, in principle, become a seller of electricity. Today, there are many such firms.
(d) Provide an economic rationale for why the government re-organized the electricity market such that the power grid operator and the seller of electricity are independent ...
5. COVID-19 measures in the labor market (25 %)
The COVID-19 pandemic has had large effects on the economy. There have been particularly large effects on industries that rely on the physical presence of their customers, such as airlines, cinemas, cafes, and hotels. Politicians and economists alike are debating how to best tackle these issues. In this question we will attempt to compare the costs of two different policies aimed at the labor market. We assume that the market for labor is perfectly competitive and that it was in equilibrium before the pandemic.
(a) In a supply-demand diagram of the labor market, illustrate the shift in demand for labor from firms. Notice that the price of labor (the wage) in Norway has not changed, due to employment protection laws. What is the implication of this? Explain. The first response of the Norwegian government was to make it easier for firms to put employees on unpaid temporary layoff. Then, the government had to pay unemployment benefits to these individuals. One way to analyze this strategy, is to think of unemployment benefits as a form of price support, where the government purchases the excess supply ...
- What is meant by the debt crisis of the developing world? What is being done to help resolve this crisis?
- What are the five interdependent components that must be addressed to bring about social modernization?
- Define family planning, and explain why it is critically important to all other aspects of development.
- What is microlending? How does it work?
- How have the fuels to power homes, industry, and transportation changed from the beginning of the Industrial Revolution to the present?
- What are the three primary fossil fuels, and what percentage does each contribute to the U.S. energy supply?
- Electricity is a secondary energy source. How is it generated and how efficient is its generation?
- What did the United States do in the early 1970s to resolve the disparity between oil production and consumption? What events caused the sudden oil shortages of the mid 1970s and then the return to abundant, but more expensive, supplies?
- What is meant by Hubbert's Peak, and how does it apply to the United States and the world?
- Describe surface mining as it is practiced in the southern Appalachians.<...
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What is economics?
Economics is a social science concerned with the factors that determine the production, distribution and consumption of goods and services. It studies how individuals (such as families or firms) and societies make choices on allocating limited resources to satisfy their wants, needs and greeds. The term economics comes from the Ancient Greek word oikonomia which literally means "the management of a household", referring to material wealth. Thus, political economy or economic science was so named because it was originally intended to discover what role politics plays in the economy. Today, economists use tools from mathematics, statistics, and computer science to analyze industrial organizations, banks, financial markets and almost every other facet of human society.
Economic analysis is applied throughout business management , finance , public policy and international relations , thus economics has a pervasive influence on how individuals make decisions in their personal lives as well as in their workplace or government decision-making processes. The Nobel Memorial Prize in Economics was established by Sveriges Riksbank to honor certain outstanding works in economics each year.
Branches of economics
There are many branches of economics that you can ask for economics homework assistance at Tutlance. These include:
- Macroeconomics: Macroeconomics studies national or regional output (GDP) as well as interest rates, inflation, unemployment and economic growth . It focuses on aggregate variables like national income, employment level, inflation rate etc...
- Microeconomics: Microeconomics studies decision making by individuals and firms to understand how prices are determined. It uses game theory models to describe interactions among people who have incomplete control over their choices because they take place under conditions of scarcity . For example it analyzes how individuals make decisions about what quantity of a good to purchase given that there are constraints on his or her income .
- Development economics: Development Economics studies how economic changes affect people in developing countries or in poor areas . Development economics is also known as "growth economics" and it was founded by Alexander Gerschenkron (1904–1978). He stressed that in less developed countries these processes were different from the ones found in more advanced economies, so generalizing assumptions about economic development would not be appropriate.
- Business Economics: Business economics studies how companies organize themselves in order to maximize profits. For instance through management techniques or marketing methods. This subfield considers decisions regarding inputs (materials), processes (manufacturing), outputs (goods) and distribution developed by business owners and managers . It aims at finding optimal ways for organising production, producing assets cheaper yet better quality products. This means focusing on efficiency without regard to other social considerations.
- Competition Economics: Competition Economics can be seen as a response to the monopoly power of large corporations when they are able to control prices. This discipline studies how competitors succeed when consumers have multiple options available to them , thus analyzing current business strategy and rewarding organizational structures .
- Financial Economics: Financial Economics deals with aspects like the determination of the value of stocks and shares , options, mortgage loans etc. The finance sector is becoming increasingly important in today's economy, which makes this branch to be an interesting topic for study for many college students.
- Economic history: Economic history uses historical methods to analyse economic developments over time and place (especially regarding the impact on social change). Economic history differs from economic theory in that it stresses the importance of taking into account the political, social and cultural aspects as well as morality. On this background, Adam Smith, an economist who is known today as "the father of modern economics" saw his discipline as a moral science whose goal was to use markets to promote prosperity, happiness and peace around the world.
- Game theory: Game theory is a branch of applied mathematics which analyzes the interactions between strategic actors. It assumes that they have incomplete information and apply different forms of reasoning to anticipate their opponents' actions . A game is a situation where two or more people choose strategies from a set of available options in order to maximize gains and minimize losses .
- Economic systems: Economic systems are social arrangements for allocating economic goods to people and social groups. Economic systems possess a number of core components that generally include: property rights, capital allocation, resource management, production processes and incentives / rewards for people from engaging in economic exchanges .
- Econometrics: The goal of econometrics is to use mathematics and statistics to solve real-life economic problems. As such, it is sometimes called applied economics . It uses econometric methods to time series or cross sectional data in order to estimate models and test hypotheses about the relationship between economic phenomena .
- Economics of education: Economics of education studies the process of production and consumption of educational services. The branch analyses how educational services are produced, their costs , who pays for them and how they are distributed. It also studies the demand for education by students .
- Behavioral economics: Behavioral economics is an interdisciplinary field based upon psychology and economics. It aims to explain economic behavior in terms of the psychological traits of individuals rather than theories or models.
- Public economics: Public economics is the application of microeconomic theory to government policy. It looks at welfare distribution, tax incidence , stabilization policy, positive and normative analysis in public finance .
- Political economy: This discipline studies how economic forces determine social institutions as well as political systems.
- Economic geography: Economic geography is a branch that examines relationships among countries and regions, focusing on the distribution of an economy's activities across space (land). For example, economic geography can study how cities are formed and why people choose to live in certain areas. It also considers whether regions develop independently or dependently of each other as well as interdependence between various economies.
- Urban economics: Urban Economics is the study of how people act in urban environments. It focuses on factors like population distribution, residential location choice, education and transportation networks.
- Environmental Economics: Environmental economics deals with the link between economics and caring for the environment. It emphasizes on green growth, doing less environmental damage and using natural resources efficiently. By studying these issues we aim at finding ways of overcoming our current environmental problems such as pollution, depletion of natural resources , biodiversity loss etc...
- Economic Policy: Economic policy is about choosing between alternatives available to government policy makers : increase spending or decrease taxes? Do we prefer Keynesianism over Monetarism? What are the pros and cons of free market capitalism? ... This study not only focuses on economic questions but also evaluates political issues such as legal problems, institutional structures etc. The reason why economists have been trying to answer these questions from Aristotle (384-322 BC) until today is because they want to understand how markets and governments can respond adequately in order to achieve social and economic balance.
- International Economics: International economics is a branch of economics that studies the factors that determine , for instance, the demand and supply of goods and services in different countries. For example, a country's international trade balance depends on its national saving level , which in turn reflects its investment level , which implies a certain amount of foreign assets .
As you can see, there are many branches of economics that you can get help with. Ask for help with economics assignments in any of the above topics.
Economic systems, models and theories
The study of economic systems encompasses how knowledge is created as well as distributed. In this field, an economic system can be seen as a functioning social system which includes at least one market mechanism . It has been defined as the science or branch of political economy that analyzes the production, distribution, and consumption of goods and services in an environment where authority (rules) is limited to the state. The term "economic system" was first introduced by Karl Polanyi (1886–1964), who stated that the "study of economic phenomena occurs in a setting of institutions; practices, conventions and rules". Since then there have emerged many subfields which attempt to explain the functioning of an economic system below.
Economic models and theories attempt to summarise and formalize around a few rules or laws so that these can be put forward as axioms. The aim is to construct a clear image of cause and effect, which implies that it must include assumptions about human behavior (e.g. individuals acting in their own rational interest).
A variety of such theories exist, like for instance: Keynesian Economics, Monetarism, Supply -side economics, Classical economics, Marxism, Institutional economics.
Economic systems can be divided into three major categories: command economies, market economies and mixed economies.
Command economic systems are based on planning decisions of government officials whereas market economic systems are based on individual decision making through markets.
In a mixed economies , decision making is shared between the state and markets.
Elements of an economy can include commodities, natural resources, capital goods, financial institutions and human resources.
In capitalist systems , all or nearly all of the means of production are owned either privately by individuals or corporations, which gives them exclusive rights to possessions and enables
Study of Economics as a science
In modern usage, "economics" refers mainly to the study of economic policies relating to government or public policy. In this sense it is synonymous with political economy. However, some economists also use "economics" in a broader sense – emphasizing wanted characteristics – such as efficiency growth , distribution, and innovation. This is the conception of economics which has become dominant in mainstream economics in recent years, with theoretical contributions coming from many schools, including figures like Friedrich Hayek, Milton Friedman and John Maynard Keynes
Though there are various forms of economic thought that can be identified (i.e. classical political economy, neoclassical political economy), the main subject today is neoclassical economics through which economists develop theories about how to achieve efficient allocation of resources or market equilibrium. Such allocation was initially viewed as being achieved by supply and demand working together in response to price signals for goods and labour; however later developments focused on information problems rather than changing prices i.e., "market failure".
Economics arose alongside the Industrial Revolution as a social science that analyzed the efficiency of productive techniques and what effects they had on society
Why study economics in college?
Economics is a social science that studies people's economic behavior. Economics helps us understand the way people make decisions about buying, selling, and investing. That means it can help you to make better decisions about your money. Understanding economics helps us to be more informed citizens.
Studying economics means mastering the tools of economic analysis which will equip students for careers in business, finance, government or policy making, law, public administration and many other fields.
Economics is like a telescope and microscope which helps us explore how the economy works. Using math, statistics, graphs, and computer models we can make predictions about economic events. Economics is a social science that uses scientific methods to describe what people do by treating them as though they are rational actors trying to achieve their goals. This is different from other social sciences like sociology which studies the actions of people in groups.
Like gravity or inertia, economics is not a choice. Governments and people may wish that certain things would happen but they don't just happen. There are consequences to what happens whether we want them to occur or not learning these consequences will help you make better decisions about your money.
Economics is the science of scarcity. Economics studies how people manage limited resources to fulfill their unlimited wants. You will find economics in every aspect of your life whether it's decisions about buying food, buying a car, or choosing what movie to see. Every decision involves trade-offs and economic concepts like opportunity cost can help you make better decisions about your money.
You may have been told that economics is the study of money and banking, but don't be fooled it's much more than that.
Economics explores questions like:
- What determines how many jobs there will be?
- Why do people save some of their income and spend the rest?
- How should we measure economic progress over time?
Economics has a number of branches including:
- Microeconomics, which looks at the behavior of individuals and firms.
- Macroeconomics, which looks at economy-wide events such as recessions or growth.
- International economics which deals with trade between countries.
- Development economics explores why some nations are rich and others are poor.
- Environmental economics looks at how we can best protect our natural resources.
Economics Study Resources:
- Welcome to the Economics Department - Boston University
- KU Economics, 2021 | Economics
- What is Economics? - College of Arts and Sciences
- Economics | American University, Washington, DC
- Learn Economics with Free Online Courses and Classes | edX
- Economics Courses - MIT OpenCourseWare
- Courses - Williams College Economics Department
- INTRODUCTION TO MICROECONOMICS - Purdue Fort Wayne
- Courses, Tutorials and Seminars | Department of Economics
- Learning Resources for Studies in Economics - SUNY Empire State College
- Math for Economics Tutorials - Schar School
- The effectiveness of collaborative learning tutorials: the views of introductory microeconomics students.
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Economics is the study of resource allocation, distribution and consumption, capital and investment, and of management of the factors of production.
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