Economics Answers

An economy initially has 200 units of physical capital per worker. Each year, it increases the amount of physical capital per worker by 10%. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases real output per worker by 0.25%.

a. If real output per worker is initially $1,000, what will it equal as a result of only the increase in physical capital per worker (i) after one year? (ii) after two years?

b. If after two years real output per worker is actually $1,100, how much of its growth was due to increase in human capital and technological progress?

Project Cost $125 million in 1999, CPI 2018$/1999$=1.50, Exchange rate 6.71 ¥/$
What did it cost in 2018 ¥?

The income elasticity of restaurant meals is 0.6. If customers income becomes 300,000 LBP instead of 200,000 LBP , the quantity demanded will

in 2015 70,000 extra people lost their jobs but total employment rose by 75000 what could explain this

Mr.Ali has an income of 30000 and he purchase 100units. His income decreases by 20% and now he can purchase 90uni hits calculate income elasticity

You want to be a millionaire when you retire in 40 years.

a.
How much do you have to save each month if you can earn an annual return of 11.9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.
How much do you have to save each month if you wait 15 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c.
How much do you have to save each month if you wait 25 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the value today of $3,100 per year, at a discount rate of 9 percent, if the first payment is received 5 years from today and the last payment is received 15 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Given an interest rate of 4.2 percent per year, what is the value at date t = 7 of a perpetual stream of $2,600 payments that begins at date t = 15? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

In calculating a retail price index, all goods and services are placed in one of the three categories in the table below.

Item Weight Current prices (base year = 100)
Food 5 110
Clothing 3 120
Other goods 2 130

What has been the percentage increase in the price index since the base year?
A) 17%
B) 20%
C) 117%
D) 120%

The table shows the year on year percentage changes for a Country’s Retail Price Index from 1990 to 1996.

Year % change
1990 18.0
1991 11.7
1992 8.6
1993 4.8
1994 4.9
1995 6.1
1996 4.5

Which statement about the price level is correct?
A) It fell over the first half of the period
B) It was at its highest at the start of the period
C) It was at its lowest at the end of the period
D) It was at the lowest at the start of the period