Q: Explain what happens in the labour market when the industry requires an occupational license before…
A: The place where workers and employers interact is called a labour market. The supply and demand for…
Q: Please help! The drop down list are the options to choose for the impact on supply, demand, pri
A: The Equilibrium price is established where the demand and supply are equal. There is change in…
Q: ↑ Conside following FIRE EVENT FIRE → NO FIRE PROBABILITY 0.02 0.98 NCE PROBLEM Where fire destroys…
A: Here we are given the payoff of the individual under the uncertainty and the respective…
Q: A consumer has preferences for two goods that are represented by the utility function u(x1, x2) =
A: Utility function : U = 2(x1)0.5 + x20.5 Price of good 1 : P1 , Price of good 2 : P2 Monotonic…
Q: This table shows the values of different elasticities of demand for yogurt at the market equilibrium…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Acquiring a supplier because it becomes more profitable Question 4 options: will raise…
A: Asking price will be influenced by a numerous variables and factors, including the size, location,…
Q: Engr. Lalai borrowed money worth of P120,000 at 8% effective annual interest. She agreed to pay the…
A: Given that, Borrowed amount (p)= 120,000 Interest rate = 8% per annum = 8/100= 0.08 Loan term = 12…
Q: Adwoa purchases only pasta and salad with her income of ghc 160 a month. Assume the price of pasta…
A: Here we are given consumer's budget which includes price of both the goods and the income. And hence…
Q: A monopoly is considering selling several units of a homogeneous product as a single package. A…
A: A market is said to be a monopoly when there is a single main supplier for a good that has no closed…
Q: what is The rule of assumptions in building economics models?
A: Assumptions refer to the things that economic assume to be true even without any proof. For example…
Q: At a price of $100 there is demand for 824 items and a supply of 500 items. At a price of $180 there…
A: A linear demand function will be applying the algebraic approach for the computation of the supply…
Q: 3. An income tax. Suppose the U.S. Congress decides to levy an income tax on both wage income and…
A: Comprehending the Solow Model depends on understanding the steady-state. Investment and depreciation…
Q: uppose that a utility-maximizing consumer is usually purchasing two goods, pizza (a normal good) and…
A: The income effect is the change in the real income due to the change in the price of a commodity and…
Q: Joe Snow’s income declines as he rejoins the Black Watch, and as a result, he buys more wine. Is…
A: The normal good refers to the good which is positively related to the income level of consumer. Put…
Q: $61,000, annual O &M costs of $13,000 and a service life of 16 years. What is the project's…
A: The payback period is described as the number of years needed to recover the original cash…
Q: A good economic theory …
A: An economic theory is a collection of ideas and principles that explains how different economies…
Q: A couple wants to save for their daughter’s college expenses. The daughter will enter college eight…
A: The amount that the lender usually adds to the principal sum that the borrower owes is referred to…
Q: Given Table 12-6 below, fill in the values for saving. Assume taxes = $800. Table 12-6 National…
A: Saving is the difference between the disposable income and consumption. Disposable income =…
Q: Use an aggregate demand and supply diagram to illustrate and explain the following will affect the…
A: In the aggregate demand-aggregate supply model, short-run equilibrium occurs at such a price level…
Q: (a) Suppose we have preferences U(X, Y) = min [X, 3Y]. Graph/sketch the indifference curve through…
A: Here we are given the utility function which is a function of 2 goods X & Y. And we are also…
Q: he cost of rebuilding the Philippines after typhoon Haiyan could reach USD 5.8bn”, a senior official…
A: Initial rise in the government expenditure leads to multiplier rise in the income level, this is…
Q: Explain the complete formula for the M1 money supply, and explain how changes in required reserves,…
A: Money supply refers to the total amount of money in circulation in the economy at a given period of…
Q: How a change in the market (including information, preferences, technology, price of alternative…
A: A Shift in Demand or Supply: Demand can be described as the ability and willingness of consumers in…
Q: - 1.7. In Section 1.2.B, we analyzed the Bertrand duopoly model with differentiated products. The…
A: Demand function : qi = a - pi (When pi < pj ) qi = 0 (when pi > pj ) qi = (a-pi )/2…
Q: 1 Marginal utility and marginal rate of substitution Suppose an individual who derives utility u(x,…
A:
Q: Explain why the simple deposit multiplier overstates the true deposit multiplier.
A: Introduction The deposit multiplier is the multiple by which banks can lend out deposited money…
Q: Give proper Explanation of the answer Cathy is willing to pay$40for a subway and Aby is willing to…
A: Consumer surplus is the difference between maximum price consumer is willing to pay and actual pice…
Q: A company is considering two types of equipment for its manufacturing plant Pertinent data are as…
A: MARR is a helpful approach to weighing up whether investment merits the risks related to it. To work…
Q: Suppose that country A produces two goods (a labor-intensive good X, furniture, and a…
A: Labor intensive implies a procedure or industry that needs a large amount of labor to produce its…
Q: Which of the following will initially result from an increase in the market demand for hot dogs?…
A: Equilibrium is where demand equals supply. At this equilibrium point , total surplus is maximized.
Q: An advertising campaign will cost $305,000 for planning and $50,000 in each of the next six years.…
A: For an investment to be economically desirable the Internal rate of return of the cash flows should…
Q: Bob le Flambeur is offered a raffle ticket. With probability p, the raffle ticket wins, and pays 5…
A: (a) Buying a raffle ticket with probability p, after winning he gains the amount = Winning amount -…
Q: The working hours method of depreciation assumes that the reduction of asset's value is proportional…
A: Depreciation refers to the term that is used to describe how physical things lose value as time and…
Q: Declining balance method is a form of accelerated depreciation. Also known as the 200% declining…
A: A ongoing, permanent, and progressive decline in the book value of fixed assets is referred to as…
Q: A: Key concepts 1. An individual is observed throwing money into the sea. Is this behaviour…
A: According to the optimization principle, an entity will behave in a way that maximizes the value of…
Q: Consider the nature of unemployment and inflation and predict whether or not they should have some…
A: Inflation is the term used to describe price increases for almost all goods and services in the…
Q: An industrial plant bought a set of equipment for 90,000. Miscellaneous expenses including…
A: Salvage value is the amount that company expects to get at end of useful life asset. Company…
Q: Suppose that Brazil initially has a higher capital rental rate (r) than the United States. What…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three subparts for…
Q: Question 1 :- (a) What is meant by an amortizing security? (b) What are the three components of…
A: Answer to the three sub parts are as follows:
Q: The figure shows the total product curve for different levels of a variable input, labor. O A OB ос…
A: The total product is the output through the production process. Marginal product is the change in…
Q: Suppose that at the end of December 2009, Federal Reserve notes were $600 billion, the quantity of…
A: The monetary base includes the entire amount of a currency that is either in the form of commercial…
Q: A firm is currently buying 30 TV ads at $200 each and 20 newspaper ads at $100 each for a total…
A: Advertising costs covers expenses associated with promoting an industry, entity, brand, product, or…
Q: All of the following are reasons that spending on durable goods is volatile except durable goods are…
A: When talking about durable goods, it can be said that these are the goods that are not required to…
Q: A decision-maker with initial wealth w faces a probability of incurring a loss. If the loss occurs,…
A: The propensity to avoid risk is defined as Risk Aversion. An investor who favors capital…
Q: Along an indifference curve Multiple Choice O the MRS is constant. O O O the price ratio is…
A: The definition of the indifference curve is the curve that depicts various pairings of two…
Q: what does it mean that the optimum currency area is not the world but region?
A: “A Theory of Optimum Currency Areas.”, through which Mundell studied the optimal conditions or…
Q: When output and employment slowed in early 2008, the Bush administration and the Democratic Congress…
A: The various macroeconomic theories and models that attempt to explain how aggregate demand has a…
Q: Q1. Assume that a country produces two goods, agriculture (which requires land and labor) and…
A: Heckscher-Ohlin theory in international trade is a model that explains how a country with an…
Q: 3. A consumer has a budget of £12 to split between two goods: good 1 has a price of 2, good 2 has a…
A: Budget constraints refers when a consumer's income restricts their purchase patterns. In other…
Q: The monetary base increased by 20% during the contraction of 1929‐1933, but the money supply fell by…
A: Money supply is the amount of money available for immediate use in an economy. It is the same as the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A CES production function with physical and human capital Consider the CES production function in terms of physical capital, K, and human capital, H: where 0 a. Set up the Hamiltonian and find the first-order conditions. b. What is the optimal relation between K and H? Substitute this relation into the given production function to get a relation between Y and K. What does this “reduced-form” production function look like? c. What is the steady-state value of the ratio of physical to human capital, (K/H)∗? d. Describe the behavior of the economy over time if the initial condition is such that K(0)/H(0)? e. Suppose that the inequality restrictions IK ≥ 0 and IH ≥ 0 apply. How do these constraints affect the dynamics if the economy begins with K(0)/H(0)∗?The aggregate production function is Y = 3KL. If there are 20 units of capital and 50 units of labor, what is capital productivity? Group of answer choices 300 1000 600 150Which of the following equations does not represent a plausible production function? a.F(K,L) = 2KL b.F(K,L) = 2K-2L c.F(K,L) = 2(KL)0.5 d.F(K,L) = KL
- Write the production function in its simplest form (human capital being included in TFP) and explain the nature of each factor as well the theoretical value of the parameter Alpha. In other words what does the value of Alpha represent regarding the returns of each factors of production?The aggregate production function is y=3KL. If they are 30 units of capital and 40 units of labor, what is aggregate output?A19 Subject - economics Consider a constant returns-to-scale production function f(k, l). Show that f(k, l) = k ∂f/ ∂k + l ∂f /∂l
- With the help of TPP ‘s derivates show that production function is maximumAre there key differences between an increase in the capital stock and an improvement in the level of technology?Suppose a country has a population of 120 people, a working-age population of 100 people, its labor force participation rate is 0.5 (50%), and the quantity of output is 60 units. Suppose that the production function of the economy is given by Y=2N, where Y represents the quantity of output and N represents the number of workers needed to produce the output. I know the answer is 0.4 but I don't understand how to get it. Thank you!
- Suppose the US total output is represented by the standard Cobb-Douglas production function with capital and labor inputs. If all inputs are tripled (and TFP is unchanged), then output per worker Exactly triples B. Increases but not exactly triples C. Is unchanged D. Decreases E. None of the other optionsAssuming that the production function [Y=A(K, L, N, H)] exhibits constant returns to scale we can derive productivity in the following way A.) Y/L = A(K, 1, H, N) B.) Y/L = A(K/L, 1, H/L, N/L) C.) Y/L = AK, AL, AH, AN D.) Y/L = C+I=G=NXThe amount of fish caught per week an a trawler is a function of the crew size assigned to operate the boat. Based on past data, consider the following production function identifying the relationship between output and labor input. You may assume that capital is fixed at 10 units.Labour Input (No of. Workers) (L) Total Product TPL (Q). From the table below :-(a) Calculate APL and MPL. (b) Graph APL and MPL. Do they have the expected shape? (c) On your graph, identify the three stages of production Labour input (No of Workers) (L) Total Product TP L (Q) 0 0 1 80 2 170 3 300 4 450 5 540 6 620 7 700 8 770 9 830 10 880 11 920 12 950 13 970 14 980 15 985 16 988 17 988