Macroeconomics Answers

5

. Check

whether the following functions satisfy the following properties:

i) Increasing i

n both inputs.

ii) Diminishing marginal products.

iii) Constant returns to scale.

iii) Complementarity between capital and labor.

a) Y=K^0.5^N0.7

b) Y= 2K+3N

c)Y = K^0.3N^0.7

d) Y= 2N+2

Use the fact that given a function of the form Y=K^αN^β marginal products are given by

MPN=βK^αN^β−1, MPK=αK^α−1N^β

C=500+0.4yd,MPs=0.6,I=500,g=700,x=200 and m=500+0.2y the tax is 20%of y the population is 90 people calculate in equilibrium

C=500+0.4yd, mps=0.6,I=500,G=700,*200 and m=50+0.2Y the tax rate is 20% of Y the population is 90 people. Calculate national income equilibrium

Briefly explain the weakness of the RSA's industrial Development Zones

Britney and Paris are neighbors. During the winter, it is impossible for a snowplow to clear the street in front of Britney's house without clearing the front of Paris's. Britney's marginal benefit from snowplowing services is 12 − Z, where Z is the number of times the street is plowed. Paris's marginal benefit is 8 − 2Z. The marginal cost of getting the street plowed is $16. Sketch the two marginal benefit schedules and the aggregate marginal benefit schedule. Draw in the marginal cost schedule, and find the efficient level of provision for snowplowing services.