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Q: You have studied the application of partnership, sale and purchase, and rental based Islamic financi...

A: Islamic banks are those banks that is in accordance with sharia and Islamic economics.

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? Explain.

A: Increasing returns to scale happens,when output increases at a faster rate than the increase in inpu...

Q: Question No 02                                                                     What is a differ...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: Q: Theoretically and graphically explain how firm choose optimum combination of inputs in short run ...

A: Answer: Assumptions:  Two inputs, Labor (L) and Capital (K) Price of labor, wage rate (W) Price of ...

Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm? Draw a graph and explain.

A: Perfect competition: Under the perfect competition market, the price is determined by the demand and...

Q: Demand-pull inflation Demand-pull inflation occurs when:       A.  input costs rise.     B. ...

A: Demand pull inflation is nothing but the inflation due to the change in demand. 

Q: The production function for a firm is q=−0.6L^3+18L^2 K+10Lwhere q is the amount of output, L is the...

A: The average product of labor is the total product of labor divided by the number of units of labor u...

Q: What are the basic determinants of investment? Explain the relationship between the real interest ra...

A: Investment is defined as an addition to the existing stock of real capital assets. Therefore, the in...

Q: There are the three reasons why aggregate demand is downward slope: real wealth effect, interest rat...

A:

Q: Suppose there are only two people in the world. Each person’s production possibilities frontier also...

A: Suppose there are only 2 people in the world.Each person's production possibilities frontier also re...

Q: How would you define price stickiness? How does this phenomenon lead to an increase in the short run...

A: Price stickiness means the rigidity of input price (labor wages) and output price ( menu cost). When...

Q: By how much would taxes have to rise as a share of GDP in order to “solve” the Social Security probl...

A: Social Security has a basic math problem which is long-known which indicates that more money would b...

Q: The current market rate of interest is 10 percent. At that rate of interest, businesses borrow $300 ...

A: Equilibrium is at such an interest rate, where quantity of loanable funds demanded equals quantity o...

Q: 3. In competitive markets economic profit becomes zero in the long-run. However, it is also possible...

A: In competitive markets, economic profit becomes zero in the long-run. But technological innovation o...

Q: Example 9.5 describes the effects of the sugar quota. The supply equation is Qs = -7.48 + 0.84P, and...

A: The given information: Qs=-7.48+0.84PQd=26.7-0.23P Import limited to 5.3 billion  Domestic price is ...

Q: Define externality .

A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms...

Q: An increase in quantity demanded caused by change in the price ......................... a)     re...

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at th...

Q: 4. Complete the table below Output VC FC TC AVC AFC ATC 30 4 2 40 48 4 63 5 46 6. 70

A: Output VC FC TC AVC AFC ATC 0 - 30 30 - - - 1 4 30 34 4 30 34 2 10 30 40 5 15 20 3 18 30 48 ...

Q: 9. Match each concept in Column A with an example in Column B. Column A Column B a. Substitute goods...

A: a.Substitute goods-Tea and coffee b.A non-price determinant of demand-Consumer income c.A non-price ...

Q: Assume that marginal propensity to consume is 0.75. autonomous consumption is 100 units (consumption...

A: multiplier = 1 / (1 - mpc) = 1 / (1 - 0.75) = 1/0.25 = 4  

Q: Analyze how much Pakistan’s GDP and each of its components is affected by the following transactions...

A: 1) Atiya spends at a restaurant. This would be included in GDP and would increase GDP by 1000. It wo...

Q: Question 2 a) Briefly explain and show diagrammatically what will happen to the equilibrium price an...

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want rem...

Q: 3. A firm manufactures women clothing The following costs are incurred by the firm: $45 000 S1 200 (...

A: a) Fixed costs are the costs which need to be paid irrespective of the level of production. Examples...

Q: Q2)Tony Keonte owns a factory that manufactures Eye-Games. His weekly profit (in thousands of dollar...

A: Profit (P) = - 4x2 + 80x - 300 When profit is zero, - 4x2 + 80x - 300 = 0 4x2 - 80x + 300 = 0 x2 - 2...

Q: A shift of demand is a movement of the entire demand curve & will result in a change in the equilibr...

A: Hi Student, Thanks or posting the question. As per the guideline, we are providing answer for the fi...

Q: The principle of comparative advantage does not provide answers to certain questions. One of those q...

A: Comparative advantage tells answers about opportunity cost, specialization, and benefits from the tr...

Q: In the short run, profits when a competitive firm shuts down are-$8200, and they are -$350 when the ...

A: In the short run if the firm is earning losses and is unable to cover its variable cost then it coul...

Q: Is it possible to increase the labor productivity (output per unit of labor) in a given production p...

A: Labor productivity: It is the volume of output produced per unit of labor during a particular time. ...

Q: Discuss two examples of similar types of wearable technology for humans?

A: Technology: It is the arrangement of information, abilities, experience, and procedures through whic...

Q: In competitive markets economic profit becomes zero in the long-run. However, it is also possible fo...

A: The competitive market is the type of market where there are large number of buyers and seller in th...

Q: In the area around Iqra University, a number of food vendors gather each lunchtime to sell food to u...

A: 1.The market structure would be monopoly,because there is no competition for tipu burgers. Monopoly ...

Q: Q1. ĮThe graphs of the perfectly competitive market for eggs and an egg producer are the given below...

A: Perfectly competitive market is the market structure where there are large number of buyers and sell...

Q: Suppose to get re-elected, an incumbent government wants to continuously expand the economy so that ...

A: We can examine both long-term and short-term changes in gross domestic product, or GDP, using the AD...

Q: Assume the number of employed people in Pakistan is 22.5 million in 2020. The number of unemployed p...

A: 1) Number of employed= 22.5 million Number of unemployed= 6 million Labor force= Employed+ unemploye...

Q: The Bureau of Labor Shenanigans announces, of all adult Vulcans: 215,000,000 were employed, 19,000,0...

A: Since, the question has multiple parts, we will be answering the first three for you. If you have a ...

Q: What is meant by a competitive firm? Explain the difference between a firm’s revenue and its profit....

A: The firm is an individual unit of the business which produce and sell the product in the market. The...

Q: What kind of macroeconomic policy should India follow?

A: India needs to have loose monetary policy and fiscal policy. With these 2 in operation,money supply ...

Q: Is it possible to increase the labor productivity in a given production process which exhibits dimin...

A: Diminishing return theory states that every additional input (labor) will lead to a smaller increase...

Q: Suppose there are three types of Apples A, B and C being sold and consumed. The demand and supply eq...

A: Demand and supply equation for good A: DA= 20-2PA+4PB+PC SA=4PA-5 Demand and supply equation for goo...

Q: Government of Vacation Land is concerned about the increasing obesity rate in their country. To redu...

A: Price floor refers to the situation where the set minimum price for the good which is greater than t...

Q: Distinguish implicit and explicit cost of production give an example for each?

A: Explicit costs are out-of-pocket expenses. Implicit cost is the opportunity cost.

Q: 54. The computer market in recent years has seen many more computers sell at much lower prices. What...

A: The market equilibrium is the point of intersection of downward sloping demand curve and the upward ...

Q: 3. The circular flow model The following diagram presents a circular flow model of a simple economy....

A: Since you have asked multiple subpart question, we will solve first three parts for you. If you want...

Q: Is it pessible fek matginal utility to be negative and yet tola wWility to be pessitive hy of why na...

A: Utility refers to the satisfaction which an individual receive from the consumption of a good, or se...

Q: 5. The average fixed cost curve and the average variable cost curve have two different shapes. With ...

A: Average fixed costs curve appears like an oblong hyperbola. it's defined because the ratio of TFC to...

Q: Perfectly Price Inelasticity is when the Quantity demanded does not respond to price changes. a)  ...

A: The concept of price elasticity is used to gauge how the changes in price of a good impact the chang...

Q: Answer iv

A: Inflation refers to the situation where the general price of goods and services increases in the eco...

Q: 21. Find the marginal rate of technical substitution for the Cobb-Douglas production function Q = AL...

A: The provided production function is: Q=ALαKβ

Q: Is it possible to increase the labor productivity (output per unit of labor) in a given production p...

A: Principle that because the use of an input increases with other inputs fixed, the resulting addition...

Q: Q2. Explain whether each of the following events will increase, decrease or have no effect on long-r...

A: Investment in new power transmission technology is an improvement in technological endowment. This i...