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Suppose the production function of a firm is given ×=0.5lthe power of 1/2*k the power of 1/2 price of labor and capital are given $5 and$10 respectively,and the firm has constant cost out lay of$600
1; find profit maximize level of L and K to employee
2; find MRTS of L to K at optimum
If Gouda cheese and cheddar cheese are substitutes, then which of the following would increase the demand for cheddar cheese?
1.an increase in the price of Gouda cheese
2.an increase in the price of cheddar cheese.
3.a decrease in the price of Gouda cheese
4.a decrease in the price of cheddar cheese
A market demand curve reflects:
1.how much buyers are willing and able to buy at each possible price.
2.how quantity demanded changes when the number of buyers changes.
3.when the buyers are willing to buy the most.
4.the fact that the level of income is inversely related to quantity demanded.
1With an aid of agricultural project, critically discuss the two approaches to the
working definition of project.
Suppose an importer of medical devises imports ultrasound machines: 50% from X, 30% from Y, and 20% from Z. If 10% of the machines from X, 5% from Y, and 10% from Z are defective, (a) what is the probability that an ultrasound machine imported by the importer is defective? (b) if an ultrasound machine is found defective, what is the probability that it came from Z?
Using the IS-LM model, explain what could happen if the trust in bright future disappeared from capital markets. You can use some historical events as examples.
2.1 Consider a closed economy that is described by the following model:
C = 280m + 0.72Y
Where:
C = Consumption Y = Income
I = 150m I = Investment
G = 300m G = Government spending
T = 22% t = Tax rate
2.1.1 Calculate the multiplier. (3)
2.1.2 Calculate the total autonomous spending. (2)
2.1.3 Calculate the equilibrium income. (3)
2.1.4 Calculate the level of savings at equilibrium. (2)
2.1.5 Calculate the amount of tax collected at equilibrium. (3)
2.2 Use the Keynesian diagram to explain and illustrate the effect of an increase in investment on employment and output in the economy. (7)
Taxes.......
a. are the level of autonomous spending
b. raise the level of autonomous spending
c. leave the multiplier unchanged
d. are a withdrawal or leakage from the flow of income and spending
e. lower the level of autonomous spending
What are the various types of inflation? What are the criteria used for differentiating
between them? Explain.
What are the differences between the Fisherian and Cambridge versions of the
quantity theory of money?
