Microeconomics Answers

Numeric example between rate of change and the level of change

Suppose you own an outdoor recreation company and you want to purchase​ all-terrain vehicles​ (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is ​$250,000. ATVs cost ​$5,000 each and snowmobiles cost ​$12,500 each.

a. Draw the budget line for your purchase of new vehicles.

Use the line drawing tool to draw a budget line. Properly label this line. Place end points one on horizontal and one on vertical axes.

Carefully follow the instructions​ above, and only draw the required objects.

b. What is the opportunity cost of one​ ATV?

The opportunity cost of one ATV is ...? ​snowmobile(s).

​(Round your answer to two decimal​ places.) i need help with question (B)

how did you get 2/3 from 8 000/12 000?

The south African economy has been experiencing either negative or stagnant growth for more than a decade. This has resulted in high level of unemployment. President Ramaphosa has promised to come up with a recovery plan as a way of reviving the ailing economy. However, despite the endeavor the government is making, more and more jobs are lost every day. The lesson learnt from other countries facing the same situation as ours is that entrepreneurship ends up as a safe-haven for those who cannot be absorbed in the mainstream of the economy (formal sector).it also serves as the bloodline of the economy.

In light of this, discuss the role that tertiary education can play in order to address unemployment problem in South Africa. (Hint: focus on the role of transforming universities into entrepreneurial universities)

1. a Suppose M=8, P1=4, P2=2. Graph the budget set for this consumer.

How can you compare the benefits to the cost?

Suppose there is a purchase of bonds by the central bank and a simultaneous tax cut. We know with certainty that this combination of policies must cause

Select one:( If you sure, with explanation please)

A.

a reduction in output.

B.

an increase in the interest rate.

C.

a reduction in the interest rate.

D.

an increase in output.

1.    A perfectly competitive firm produces 100 units of a good and the market price per unit of good is Birr 18. If the given firm is known to earn a normal profit of Birr 6 per unit, how much is the firm’s total cost of production at this level?