Microeconomics Answers

Assume a country produces haircuts and shirts with inputs of labour. The country has 1000 hours of labour available. A haircut requires ½ hour of labour, while a shirt requires 5 hours of labour.
a. Construct country’s production- possibility frontier.
b. The country is faced with massive unemployment. How will the PPF be impacted? Explain and indicate on graph.
c. The country discovers new technology and moves towards automation. Justify how this will impact the PPF for the economy. Also, indicate the same through the graph.

In the context of Pakistan’s society for each of the following products, indicate the correct type of price elasticity of demand or supply and also justify your answer:
a) An exquisite painting to be sold at an auction
b) Demand for Cancer-treating drug c) Production of gold mining
d) Demand for gold

In past 50 years the frozen food industry in U.S has grown from $1billion to $27 billion. Discuss the role of opportunity cost in our lives with regards to this huge growth in the frozen food market in the U.S

Can you identify and explain your family’s interaction in the market for factors of production and your family’s interaction in the market for goods and services.

What are the 4 types of market structures? Give an example of each.

Is it ever okay for the government to regulate prices?

Economists define economic growth as a

Expansionary demand management policy measures tend to

The lockdown around the world has caused the rapid growth in the electronic market as people have shifted from conventional methods to the new methods for imparting knowledge and staying connected. If demand and supply function are given as:
Qd= 65 – 10P Qs= -35 + 15P
a. Find the equilibrium price and quantity and show it on labeled D/S diagram.
b. How do you interpret market equilibrium: (i) if P= Rs.6? (ii) if P=2?
c. Show on the Demand-Supply diagram in (a), the graphical interpretation of your answer of (b).