Microeconomics Answers

Namibia’s small population of about 2.3 million is a curse rather than a blessing”. Use the arguments of the neoclassical economic theory to discuss this statement.

Wage inequality and globalisation: Has the move towards a more integrated South

African economy brought with it greater demand and supply mismatches.

▪ Finally, in light of the unique socio-economic challenges facing the country, provide a few recommendations on how the South African government can best manage the push towards the fourth industrial revolution, so as to improve the employment of labour in the economy whilst subsequently providing a more inclusive and equitable economic structure.

Specifically the price of tickets between Lusaka and Livingston’s increased from 200 kwacha to 250 kwacha . The demand equation is Qd =200-5p. Calculate the old price quantity demanded and the new price quantity demanded level

Consider the perfectly competitive market for diesel . The aggregate demand for gasoline is the demand for gasoline

Qd=100-p while the aggregate supply is Qs =3p work out the equilibrium price and quantity

When normalizing the parameters for a Cobb Douglas Function, prove that the utility is unique only up to a monotonic transformation if α = 0.3

The Ministry of Industry and Trade wants to review the Youth Entrepreneurial Scheme (YES) implemented by the Ministry some five years ago.

(a) Develop a research question to address the impact of the programme in the national income, export trade, local employment and GDP growth.

(b) Outline your dependent variable (DV) and the independent variables (IV) from the research question.

(c) Construct a simple economic model and econometric model and identify the parameters to be estimated.

Identify factors that encourage firms to collude indirectly in an oligopoly market. Build a case study in the context of Bangladesh, or your resident country. 

The Cobb- Douglas production function is given by the form Y = A La Kb

Where, Y = Output (mt/day), L = Labour (hours/mt) K = Capita (Rs/mt). By taking the natural logarithm of each term in the function, that is LnY = LnA+aLnL+bLnK. Using a standard multiple linear regression model the parameters of the function were obtained as follows;

Ln Y = 4.45 +0.5LnL + 0.4LnK

(2.2) (0.01) (0.02)

The standard error for each estimated parameter is shown in parentheses below the estimate.

Construct equation for Cobb- Douglas production function and briefly explain the properties of this production function (4 marks)

Measure marginal product of labour and average product of capital when L=10 and K=5 (3 marks)

Is this production function exhibit the law of diminishing returns in the short run? (3 marks)