Microeconomics Answers

any one knows how to install stata commands in stata my stata is not working properly

You are trying to decide whether to take a holiday. Most of the costs of the holiday (airfare, hotel, forgone wages) are measured in dollars, but the benefits of the holiday are psychological. How can you compare the benefits with the costs?

The table shows bundles along with an indifference curve for two goods X and Y:
x:0 1 2 3 4 5 6 7 8 9 10
Y:30 23 17 12 8 5 3 1.2 0.5 0
Calculate the MRS at each point

If nominal GDP increased by 11 percent and real GDP increased by only 5 percent, the price level must have increased by tentatively around 6 percent. Why is this so?

By using GDP deflator, the price level has increased by (11/5) X 100 = 220. Assuming everything is kept constant ceteris paribus. I don’t see why the concept of GDP deflator is not being able to be used here as we are speaking about price level.

The price of Tomato rises to Rs 50 per kg. So it's demand falls but another magazine prints that tomato contains important nutrients, it increases the demand for them. Explain the affect in demand of two.

what non-price determinant causes a pent up demand and how does it cause?

When a market is in equilibrium, given all the other factors that influence demand and supply, what happens to the buyers and the sellers?

A consumer buys bread (b) and milk (m) each week at price Rs. 10 and Rs. 8 respectively. Suppose that the consumer's current consumption of bread and milk is giving him MU (bread) = 80 and MU (milk) = 70 . Is the consumer buying the utility maximization combination of bread and milk? If not how should he reallocate his expenditures between the two goods to maximize utility? Draw diagram and explain

Assume a production function with constant returns to scale. The share of capital in production is 1/4 and the share of labor is 3/4. If both labor and capital grow at 1.6% and real output grows at a rate of 2.8%, what is the growth rate of total factor productivity?

2.8%
1.6%
1.2%
1.0%

Suppose that Omar’s marginal utility for cups of coffee is constant at 2.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee?