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1)The purchase of a new house is the one form of a) investment that is financed by private saving rather than public saving

Economics

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1)The purchase of a new house is the one form of a) investment that is financed by private saving rather than public saving. b) household spending that is not counted as part of investment in the national income accounts. c) household spending that is investment rather than consumption. d) household spending that does not contribute to GDP.

2)Identify and analyze a current public policy issue in terms of equity and efficiency, including the pros and cons of differing approaches to addressing the issue you have identified.

3) Jakob, a Canadian student who just began studying at Bocconi, rapidly discovers and loves Italian food prepared using the best ingredients available. In particular, he becomes a huge fan of pici (a traditional Italian home-made pasta), 21, and Florentine steaks, 12. His utility function over pici and steaks can be represented as follows: In x2 + In 12 The prices of a dish of pici and the price of a steak are pi and p2 (both expressed in €). Jakob's monthly budget for food amounts to I (in €).
5. What is the economic meaning of the slope of the budget constraint? 6. Derive analytically Jakob's demand functions for pici and steaks, Q. and Q2 as a function of the prices and his income. 7. Calculate the income elasticity of the two demand functions. 8. Based on the income elasticity, what kind of goods are pici and steaks for Jakob?