Macroeconomics Answers

Suppose the government sets a price floor for student books that is above the

competitive equilibrium price. Draw a graph to illustrate the welfare impacts of this policy.

According to the New York Times article, the Venezuelan government "imposes strict

price controls that are intended to make a range of foods and other goods more

affordable for the poor. They are often the very products that are the hardest to find"

Draw a graph to illustrate the welfare impacts of this policy and why the statement is true.

Discuss the properties of isoquant curves.

Discuss why operating in Stage III of the production process is an irrational decision.

Discuss how the law of diminishing marginal productivity works.

Explain why all inputs become variable in the long run.

Cite a real-life example of how a production process takes place.

Find the maximum and minimum values of the following functions

a) 3X^4 - X^3 +2

b) x^4 – 14x^2 +24x +9

Find the maximum and minimum values of the following functions

    a)        3X^4 - X^3 +2 

    b)       x^4 – 14x^2 +24x +9

2. If 12% of a population of parts is defective, what is the probability of randomly selecting 60 parts and finding that 8 or more are defective?