Microeconomics Answers

Terry’s utility function over leisure (L) and other goods (Y ) is U(L, Y ) = Y + LY. The associated marginal utilities are MU_Y = 1 + L and MU_L = Y. He purchases other goods at a price of $1, out of the income he earns from working. Show that, no matter what Terry’s wage rate, the optimal number of hours of leisure that he consumes is always the same. 

Explain how microeconomics device from macroeconomics. which of the following headlines taken from the various issues of the daily graphic deals with microeconomics

A.nestle Ghana posted a 18% increase in sales.

B. Girdco plans to slash more jobs.

C. Ghana's Output Grew by 5.8%.

D. Housing starts soared 10% in September.

E. Ghana to Breach key Deficit Target it helped to create.

What happens In the classical theory of employment and output

3. The next Monetary Policy Committee meeting is taking place on 18-20 May 2021. The ongoing debate

at the moment is that the SARB is not doing enough to help the government with its growing debt crisis, hence there has been recalls of the institution doing more than lowering the repo rate. Is this argument justified? How would you suggest the SARB proceed, taking into consideration the current fiscus issues? Provide a short monetary policy package in light of the above mentioned situation and use practical case studies to back up your answer.

Justina owns the Just's sobolo store. She charges GHS 10 per bottle for her handmade sobolo. You, the economist calculated the elasticity demand for sobolo in her town to be 2.5. If she wants to increase her total revenue,what advice will you give her and why?

Consider a consumer of goods A, B, and C. PA =2, PB=6 and PC=10, on the basis of the hypothetical data given below, determine the optimum of the consumer when the income of the consumer is birr 130.

Quantity demand

MUA

MUB

MUC

1

24

120

140

2

22

110

120

3

20

96

100

4

18

80

100

5

16

64

60

6

14

48

50

7

12

42

36

8

10

36

20

9

8

30

6

10

6

24

2

Based on the above given find: -

A.The optimum combination of quantity

B.Calculate total utility (TU) at optimum combinations

Which one of the following statements is incorrect?

Under perfect competition:

A. Firms may earn economic profit in the long run

B. Firms may earn economic profits in the short run

C. Firms may earn normal profit in the short run

D. Firms may suffer economic losses in the short run

E. Firms may earn normal profit only in the long run

A Restaurant manager decides to lower the price of a featured sandwich from Rs. 500 to Rs. 400, and she finds that sales during the week increase from 440 to 680 sandwiches. Is demand elastic or Inelastic?

Justina owns the just's sobolo store she charges 10cedis per bottle for her handmade sobolo . You , the economist calculated the elasticity of demand for sobolo in her town to be 2.5 . If she wants to increase her total revenue, what advice will you give her and why? Explain your answer

Explain how microeconomics differs from macroeconomics. Which of the following headlines taken from the various issues of the Daily graphic, deal with microeconomics

a, "Nestle Ghana posted a 18% increase in sales".

b, "GRIDCO plants to slash more jobs".

c, "Ghana's output grew by 5.8%".

d, "Housing starts soared 10% in September".

e, "Ghana to breach key deficit target it helped to create".

Explain each issue why it is a microeconomics issue.