Microeconomics Answers

A bumper harvest automatically means that farmers will have higher incomes

Define profit maximization and cost minimization problems, also define four

Present graphically production plan, feasible production plan, efficient

production plan, and optimal production plan.

Explain the changing balance and tax sharing on the graph when a Rs.5 tax is applied to a low product with a market balance price of Rs.10?

Explain the relationship between the cost and the productivity of the firm, i.e. how are the curves of total productivity, average productivity, and marginal productivity related to the curves of total cost, average cost, average variable cost, and marginal cost?

Following are the transactions in Paris city last year:                                   

Item                                                                 AED

Taxes                                                              200,000

Investments                                                     300,000

Government Expenditure                                150,000

Exports                                                            250,000

Savings                                                            500,000

1.     Calculate government balance and explain the result.   (2 marks)

1.  Calculate private sector balance.       (2 marks)                                                                                     

Calculate net exports and explain the result.       (2 marks)

Suppose there is demand for a product is Qd=70-2P and supply is Qs= 10+P. The government imposes a tax of $ 9 per unit for producer. Determine the initial equilibrium, government revenue from the tax, DWL and how the consumer's surplus and producer's surplus have changed.

Occasionally students accused there instructor rightly or wrongly of practicing great discrimination a students claim that instructed charges some student higher price for given grade than he or she charge other students unless price discrimination great discrimination charge no money discuss similarities and difference between two types of discrimination which do u prefer less or unlike more ? Why?

Consider the general demand function: Qd=8000-16P +0.75M +30PR

Derive the equation for the demand function when M =$30,000 and PR=$50.

In many countries including Pakistan, wages in skilled labour markets (doctors,

engineers, IT specialists, chartered accountants, etc.) are much higher than those in

the unskilled labour markets where wages are very close, if not equal, to the minimum

wage rate.

i. Use demand-supply diagrams to demonstrate what could have created the wage

differential between skilled and unskilled workers?

ii. What effect could this wage differential have on the market for unskilled workers

over time? Again use a diagram to demonstrate this effect.