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In factor endowment theory,
A.increasing
B.decreasing
c. constant
d.increasing first and decreasng after
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- 7. It can be argued that the theory of factor endowment is based ona. Identical preferences and tastesb. Even quality of factor inputsc. Homogeneous technologyd. All of the aboveBudget Constraints: Sam has an income of $1000 a week from a rental property he owns. Sam also has a job as a legal assistant where he gets paid $50 an hour for the first 50 hours he works. However, he can’t work for more than 50 hours, so for every hour, he works more than 50 he can work as a cashier making 20 an hour. John’s time endowment is 100 hours. a) Draw and label Sam's budget constraint b) What is John’s maximum potential income? c) What is the price/hour of leisure when Sam works fewer than 50 hours, and more than 50 hours/week? Need help for a b c . Thanks10. Which one the following represents a theory for the long-term?a. Theory of factor endowmentsb. A theory of comparative advantagec. A theory based on the product cycled. An overlapping demand theory
- Pls help with below homework. What is the main difference between the adaptive and the visionary approach ? Pls give atleast two examples.Every year the residents of a historical town gatherto determine how much to spend on their park,10 percent or 15 percent of the budget. If everyonevotes for the same percentage, they will spend thatamount, unless the year before everyone voted forthe opposite percentage, in which case they spend theaverage of the two. What characteristic of the idealvoting system is violated in this example?Refer to figure . At the initial price, the consumer consumers 5 units of apple. Suppose theconsumer exchanges orange for apple at the initial price before the change in price. Thechange in demand for apples due to the change in the value of the endowment is equal to
- Suppose a society is producing capital and consumer goods. Draw productionpossibilities frontier for capital and consumer goods. Show the points that are not possible for aneconomy to achieve. Also show a point that is feasible but inefficient.xercise 5: Production and income distributionConsider and economy with the following production technology: ,Y = 9K1/3L2/3 wherethe aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is1.a) Write down the maximization problem of the firm.b) Compute the equilibrium wage and capital return.c) Compute total payments to labor and capital. Show Euler’s Theorem holds, i.e. showthat total payments to capital and labor equal the value of output.d) What share of output goes to labor and capital?e) Suppose there is an increase in L, what would be impact on wages and capital returns?Explain.Carefully explain how the following hypothetical situations would affect the cost.benefit calculation of going to co!lege: a. It is increasingly the case that full-time undergraduate students need 5 years toor's degree.complete all of the requirements for a bacheleb. The real earnings of college-trained workers increase while those for highschool-trained workers decrease.
- Pls help with below homework. David is in a car accident that leaves him paralysed. Using the Grossman model, show how the car accident is likely to affect David's Production Possibility Frontier, optimal H, and optimal Z. Assume that David's indifference curves are such that he only values Z. Please provide graph.a) Describe the First Welfare Theorem. b) What are the tenets? Please list out with some detail. c) Describe the tenet that is subjective and how our analysis does not do a good job at overcoming this facet. d) Pick one of the tenets and provide an example of when it is violated in the real world and describe how the market outcome and optimal outcome are not aligned.Why in Pure Specific Factors only Owner of A benefits but in Mixed both owners of K and owners of A will benefit?