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Economics 101 Homework-3

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Economics 101 Homework

Answer to Question 1

GDP is the measure of an economy adopted by the United States in 1991. It is the total market values of goods and services produced by workers and capital within a nation’s borders during a given period (usually 1 year).

Boeing is a US company dealing in airplanes building and sales. if the company sells an airplane to the United Airline, still a United States company, the GDP would be affected since is the total market values of goods and services produced by workers and capital within a nation’s borders during a given period (usually 1 year). The productivity in this case is within the US border. This transaction would enter into investment as a national income accounting categories.

When Boeing sells airplanes to the US Air Force, this transaction is government expenditure and increases the GDP of the country.

A United States Citizen, Donald Trump, Purchase of an airplane from Boeing is considered to be consumption as a national income accounting category. Consumption increases the Gross Domestic Product of the US.

US Steel Inc. sale of steel to Boeing is considered an investment kind of transaction. Investment usually increases a country’s GDP.

When Airbus Europe sells an airplane to the American Airlines, this transaction is categorized as imports and decreases the US GDP.

If Boeing builds airplanes to sell next year, the airplanes increases the GDP and the transaction would be within investment kind of transaction.

Answer to Question 2

In an economy that entirely produces and consumer bathing suits, which are durable goods; Suntan Lotion, nondurable goods; as well as flights Cancun, a service, the GDP of the economy can be calculated as follows.

Nominal GDP = $(30 * 100 + 6 * 200 + 200* 30) = $10,200

Real GDP = $(30 * 100 + 6 * 200 + 200* 30) – $(30 * 100 + 6 * 200 + 200* 30) = $2,100

GDP deflector = {$(40 * 150 + 7 * 300 + 600 * 0) – $(30 * 100 + 6 * 200 + 200* 30) }/(450-350)= ($8,100- $10,200)/100 = $2,100/100 = $21

CPI = $(30 + 6 + 200) = $236/350 = 0.6742857142857143 = 67.4%

GDP deflector provides a different answer from CPI since GDP deflector gives the value of price change while the CPI provides the Change in percentage. CPI is an index of the cost of all goods and services to a typical consumer.

If increased immigration in the US increases labor force, real wages will freeze while rental prices will increase. Workers would not be happy about the immigration but owners of factories will since they will benefit from the cheaper labor.

Answer to Question 3

Given the production function: Y = 9K1/3 L2/3, in which level of capital in this economy is 100 while the level of labor in the same economy is 100,

The equilibrium real wage as wells as the real rental rate on capital can be calculated as Y = (9 * 100 1/3) * (100 2/3) = 41.77*21*53 = 982.8481. Equilibrium wage is given as 1001/3 = 4.64 while equilibrium rent is given as 1002/3 = 21.53

The total payments to labor and that to owners of capital can be calculated as 100 1/3) * (100 * 2/3) = 982.8481.

Total payment for labor is 9 * 4.64 = 41.77 while total payment for rent is 21.53 * 1 = 21.53.

The fraction of total production that goes to the payment of labor is given by 41.7/63.3 = 65.99% while 21.53/63.3 = 34.01%.

Answer to Question 4

Given that Y = 4K + 5L ,K=1000 and L= 800, G = 3000 T = 3000, I = 2000 – 6000r C = 600 + 0.6(Y-T)

Equilibrium level of interest rate will be given as

I=C

200-6000r = 600 + 0.6 (Y-T)

200-600r =600 +0.6 (4000 + 4000-3000)

=600 + 0.6 * 5000 – 200

-600r = 3400

r = -5.67, thus I = 200 – 3400 = -3200

For the case of investment, it is given as I = 2000 since it is not affected by interest rates or taxes. Equilibrium Consumption is given as C = 600 + 0.6(4000 + 4000 – 3000) = 3600.

Y = 3600 + 2000 + 3000

= 8600

I the level of T is lowered by 10 percent, Y would be equal to Y = C + 2000 + 3000. But the value of C is given by

C= 600 + 0.6(4000 + 4000 – 2700) = 3780. Therefore, the value of Y would increase to 8780. The economic output would increase by 180.

Now the new equilibrium values for investment and consumption would be:

C = 3780, as calculated, Now, C= I = 3780 = 200 – 600r; then -600r = 3580

R = -5.97

Thus, equilibrium I = 200 – 3580 = -3380. Investment will be crowded out by 180 due to the tax cut.

The intuition for the reason why the interest rate has a negative sign as far as investment is concerned is that the two have a negative relationship. When the rate of interest is high, investment becomes expensive and thus it falls. When the rate of interest is low, the rate of investment increases. The two therefore have a negative relationship. Consumption is affected by interest rate in the case whereby the rate of interest increased to lower the level of investment. Low investment lowers productivity and the level of income among consumers. This lowers the aggregate demand and consequently the rate of consumption. The vice versa would be true when the level of interest is lowered. Given this situation, tax cut would crowd out consumption by more amount than investment since investors feel the effect first and reduce production lowering the level of production and consumption.

The above guess can be tested as follows:

C = 600 + .6(Y-T) – 3000r,

= 3600 -3000r

=3600- 3000(-5.97)

= 21,510

Now the, the equilibrium value of investment before the tax was 3400, and 3380 after the tax cut.

From C = 21,510, then C = I,

21,510 = 200 – 600r,

r= -21310/600

=35.5

Thus, r has increased implying that investment would be decreased.

Analysis of a Biological Report

Analysis of a Biological Report

Name

Institution Affiliation

Analysis of a Biological Report

Maze Learning and Memory in a Decapod Crustacean

Observation Leading to the Study

Dr Ed Pope, a marine biologist alongside other researchers, conducted a study on crabs in a maze that was designed to determine their spatial learning abilities (BBC, 2019). He states that the investigation was necessary since it was already known that insects, notably bees and ants, had remarkable mental abilities, a phenomenon that was not tested in their aquatic equivalents. A lot of studies have been conducted to determine how nesting animals, insects, in particular, navigate the challenge of finding the way between their nests and distance feeding spots. These studies have indicated that honeybees and nesting insects learn their forage roots in reference to landmarks and celestial clues. The studies also go on to discuss how these bees and insects, in general, encode the information in their brains and store it there. Dr Pope does not, however, go there with his study of crabs.

Animals set a goal beyond their current line of sight by obtaining two pieces of information from their surroundings. An animal measures its orientation by determining its current position in relation to its objective to inform which orientation is more efficient. Researchers use the metaphor of a compass to summarize the challenges animals that bring food to a central nest encounter for the ability to perceive orientation and that of a map for the ability to determine position (Collett, Chittka, & Collett, 2013).

Dr Pope continuous to explain the essence of the research on these marine creatures. He says that spatial learning is a crucial coping mechanism for animals and is understood quite well in the biological sphere in many animals but not as much in marine creatures such as crabs owing to the difficulty in following their movement. The complicated nature of spatial learning makes it essential to learn how it works in crustaceans and aquatic life in order to get a better understanding of how widespread the phenomenon is across the animal kingdom.

Research Question

The research question is about how able are European shore crabs to adapt to a complicated maze in pursuit of food in a similar manner that animals find their way to a foraging site and back to their nests. Because the habitat of decapod crustaceans is involved, three dimensional and benthic, they are more likely to adapt to life in a maze. Because of this habitat learning the location of and routes to food should be an adaptive trait among this species that can be studied using a maze. Unlike the complex mazes with challenging configurations used in studies involving insects, the ones used in this study are rather simple.

Hypothesis

The study hypothesis is that spatial learning is a trait that is exhibited by every animal despite crustaceans having a significantly inferior brain to those of insects a species that remains the benchmark for spatial learning (Davies, Gagen, Bull, & Pope 2019). Because of the nature of their habitat, the European shore crabs are expected to possess some coping mechanism that would inform their movement in search of resources. Although it is not clear how capable these crustaceans are in spatial learning, a certain level of this capability is expected. Navigation in invertebrates is reliant on the principle of the compass, maps and landmarks, so the crabs are excepted to adopt to the maze over time and eventually find their way to the food points.

The researchers do not expect the crabs to achieve spatial learning without taking time to adopt. The only apparent unknown issue is the amount of time the crabs will take to calculate pointers such as the distance travelled and the sequential turns before visualizing the maze in its entirety. Carcinus meanas has an identifiable trait referred to in this study as wall-hugging, which is a strong character exhibited in the natural and these control conditions. This trait involves the crabs following the wall in either the left or the right side, which is a clear indication of spatial learning, although they are expected to make mistakes in the process.

To test this hypothesis, twelve European shoe crabs, scientific name, Carcinus meanas, were picked form south wales and the docks of Swansea and each put in one of the available 301 tanks connected to a seawater system recirculating at 40 000 1 (Davies et al, 2019). The researchers ensured that all the crabs placed in these tanks had not health defect, with appendages that were intact and branded according to the water tank they were placed. The researchers then left the animals to acclimate for a month. No animal died during the period of the study.

The maze included a starting chamber that was just contiguous to the entrance but not connected to the main maze with a piece of Perspex separating the two. It had a single correct path that traversed for 2 meters and required the animals to turn five times with three dead ends. The subject animals were tested each week on the same day for a month with each one of them fasted for a period of between 3 to 5 days (Davis et al, 2019). The tests included placing the maze in a large raceway tank that located in the same room as the holding tanks with both the small and large reservoirs filled with still seawater up to a depth of 10 meters. The crabs were placed at the starting pint and food (blue mussels) placed at the end of the maze. They were then given 60 seconds to acclimate before the doorway to the maze/starting chamber was opened. A high-resolution camera recorded the movement of the crabs with the absence of light and spectators (Davies et al, 2019). The trial run for 60 minutes after which it stopped or immediately the crab located the food. The recorded video was then used as the basis for calculating the time elapsed (latency) and the number of times each crab took a wrong turn.

After this conditioning study, the crabs were subjected to trials in the absence of food two weeks after the conditioning study. The trials were similar in every aspect with the conditioning study apart from the lack of food at the endpoint. The reason behind this was to investigate whether the crabs had other motivations to reach the endpoint besides food.

The results of the conditioning study were as follows:

All the crabs managed to reach the endpoint within 25 minutes in the presence of the crushed blue mussels.

The varying weights of the crabs did not influence the latency or the number of times the crabs took a wrong turn.

The latency decreased over time, creating a sloping trend from week one to week four.

The crabs did not make as many wrong turns as they did during the first week and the trend was maintained up to the last week. They made an average of 3.5 wrong turns in the first week down to an average of one by the fourth week.

The results of the trial without food were as follows:

All the conditioned crabs took only 8 minutes to find the maze’s end without food as a motivating factor, which was by a large margin higher than what was recorded during week 3 and 4 of the conditioned study.

They recorded a more significant latency than they did when food was present.

Crabs that were introduced to the trial for the first time (naïve crabs) recorded a significant difference in latency to those that were conditioned.

In conclusion, learning ability was evident in every crab, with specific animals highly interconnected against the population-average forecasts. Carcinus meanas demonstrated consistent behavior especially in exploratory comportment before and not in learning and various research investigating invertebrate learning often encounter a high level of behavioral inconsistency which may be caused by social plasticity or personality (individual character). In crabs, the results indicated individual differences owing to idiosyncrasies in plasticity as opposed to consistent personality differences. The inclusion of a naïve population proved that only food was the motivating factor for attracting the subjects to the endpoint. Although the food was crucial in navigating the crabs towards the end of the maze, conditioned crabs exhibited memory of the maze as they moved to the end with no significant differences in latency between week six and the first two weeks even in the absence of food.

Next Step for the Research

The slight increase in latency between week 6 and 4 may be an indication of the importance of the food cues but could also point at loss of memory during the two weeks the crabs stayed away from the maze. This study has significant ecological implications because it sets the foundation a model system for exploring the effects of waterborne pollutants, or changes in the chemical composition of the water, on a cultured biological and economically essential invertebrates.

References

BBC. (2019, October 23). Crabs crack maze to find food in study. Retrieved from https://www.bbc.com/news/uk-wales-50145415?intlink_from_url=https://www.bbc.com/news/topics/cg41ylwvwy3t/biology&link_location=live-reporting-storyCollett, M., Chittka, L., & Collett, T. S. (2013). Spatial memory in insect navigation. Current Biology, 23(17), R789-R800.

Davies, R., Gagen, M. H., Bull, J. C., & Pope, E. C. (2019). Maze learning and memory in a decapod crustacean. Biology letters, 15(10), 20190407.

Economic Vitality Index,

Economic Vitality Index,

A case study of Baltimore MD 21215 and Kelsey

Name

Professor

Institution

Course

Date

Economic vitality index

Introduction

The economic vitality index is a comparative report on the economic development or vitality of cities in the US and a ranking. This is a clearing house of what makes other cities much economically vital than the rest. This report is based on the economic data of Baltimore and Kelsey.

A comparative analysis

Rapidly Developing

From the data it is healthy to hypothesize that Baltimore is more economic vital than Kelsey.

Analysis

Ho: Baltimore is economically vital than Kelsey

H1: Baltimore is not economically vital than Kelsey

Descriptive statistics for Baltimore MD

Anderson-Darling A-Squared 0.325

p 0.455

95% Critical Value 0.787

99% Critical Value 1.092

Mean 2560.600

Mode #N/A

Standard Deviation 1717.167

Variance 2948663.156

Skewedness 0.004

Kurtosis -1.421

N 10.000

Minimum 352.000

1st Quartile 961.250

Median 2937.000

3rd Quartile 3594.000

Maximum 5199.000

Confidence Interval 1228.387

for Mean (Mu) 1332.213

0.95 3788.987

For Stdev (sigma) 1181.128

3134.878

for Median 473.000

3624.000

Chi squared test for Baltimore MD and Kelsey

Chi-Sq 72 Baltimore Expected Kelsey Expected

p 0 0 0  0.05 5191.126 5127.874 Variables are Related 4242.849 4191.151 2233.105 2205.895 2693.409 2660.591 4698.122 4640.878 3263.885 3224.115 1887.499 1864.501 594.6226 587.3774 447.7277 442.2723 353.6546 349.3454 Anova test for Baltimore MD and Kelsey household income

Anova: Single Factor  0.05           SUMMARY Groups Count Sum Average Variance Baltimore 10 25606 2560.6 2948663 Kelsey 10 25294 2529.4 4028804     ANOVA Accept Null Hypothesis because p > 0.05 (Means are the same) Source of Variation SS df MS F P-Value F crit Between Groups 4867.2 1 4867.2 0.001395 0.971 4.413873 Within Groups 62797207 18 3488734 Total 62802074 19         House hold income

t-Test: Paired Two Sample for Means  0.05   Baltimore Kelsey Mean 2560.6 2529.4 Variance 2948663 4028804 Observations 10 10 Pearson Correlation 0.808797 Hypothesized Mean Difference 0 df 9 t Stat 0.083 P(T<=t) one-tail 0.468 Accept Null Hypothesis because p > 0.05 (Means are the same)

T Critical one-tail 1.833 P(T<=t) two-tail 0.935 Accept Null Hypothesis because p > 0.05 (Means are the same)

T Critical Two-tail 2.262   Descriptive statistics of the Baltimore MD Average Age of Adults in Household

Anderson-Darling A-Squared 0.215

p 0.798

95% Critical Value 0.787

99% Critical Value 1.092

Mean 5788.182

Mode #N/A

Standard Deviation 2202.962

Variance 4853042.364

Skewedness -0.020

Kurtosis 0.252

N 11.000

Minimum 1661.000

1st Quartile 4807.000

Median 5483.000

3rd Quartile 7057.000

Maximum 9513.000

Confidence Interval 1479.970

for Mean (Mu) 4308.212

0.95 7268.152

For Stdev (sigma) 1539.247

3866.052

for Median 3795.000

7631.000

Figure SEQ Figure * ARABIC 1: Education level http://www.clrsearch.com/Baltimore_Demographics/MD/21215/Education-Level-and-Enrollment-Statistics)

2010 Population Growth and Population Statistics Baltimore, MD 21215

Total Population 63870

Square Miles 6.96

Population Density 9,179.40

Population Change Since 1990 -13.87%

Population Change Since 2000 -3.17%

Forecasted Population Change by 2014 -1.51%

Population Male 28,541 44.69%

Population Female 35,329 55.31%

Median Age 41.40

Figure SEQ Figure * ARABIC 2:http://www.clrsearch.com/Baltimore_Demographics/MD/21215/Population-Growth-and-Population-Statistics

Conclusion

Development

Baltimore is more developed than Kelsey based on the economic data and the household income, the average for the household income for Baltimore is higher than Kelsey, however, Kelsey has a higher population growth and high average for adult’s population. The population growth between the two cities is also skewed towards Baltimore. Baltimore has the highest population growth probably due to migration

Existing-Emerging Growth

In this category, Kelsey has a higher index, as the level of development is higher than Baltimore. Baltimore has reached its peak while Kelsey is experiencing new growth in terms of business and investment. Baltimore can be defined as lagging urban while the Kelsey is an emerging rural.

References

HYPERLINK “http://www.clrsearch.com/Baltimore_Demographics/MD/21215/Population-by-Age” http://www.clrsearch.com/Baltimore_Demographics/MD/21215/Population-by-Age

HYPERLINK “http://www.clrsearch.com/Baltimore_Demographics/MD/21215/Population-Growth-and-” http://www.clrsearch.com/Baltimore_Demographics/MD/21215/Population-Growth-and-Population-Statistics