Economics Answers

Starting with 1980’s economists within the neoclassical school have increasingly emphasize the
necessity of having a flexible labor market. One of the characteristics of the flexible labor market is increased level of mobility between sectors and occupations. Write a factor that can increase this kind of mobility within the labor market.

Lok Sabha in India is to discuss a key constitutional amendment, and there will be four
rounds of voting. In each round of voting, assume that the ruling party has a 60% chance
of winning, i.e. getting the resolution passed by majority vote. Further assuming that the
voting rounds are independent of each other, what is the probability that:
a. The ruling party will win 0 rounds, 1 round, 2 rounds, 3 rounds or all 4 rounds of
voting? (5 Marks)
b.The ruling party will win at least 1 round?

1. For a office building, marginal benefit and marginal cost of an additional floor for a builder is given by,

Explain the concept of market equilibrium and use a demand and supply diagram to show the equilibrium?

Use demand and supply diagrams to analyse changes to price and quantity following changes in demand and supply?

Explain how changes in the equilibrium price and quantity are influenced by the elasticity of demand and supply?

Explain the difference between shortage and surplus?

Question:
Payments of $670 are being made at the end of each month for 5 years at an interest rate of 8% compounded monthly. Calculate the Present value?

Net and Red each expect gross profit of 100,000 in the coming year. Net thinking that it would like to see its net profits rise by more considers advertising during Super bowl. An ad will cost 80,000. If Net advertises and Red does not, Net expects its gross profits to rise by 230,000 while Reds profits will only rise 50,00 instead of 100,000. If both firm advertise their profits will rise the same as if neither advertised, except they spent 80,000 for the ad. Create a profit matrix only including net profits.

Project is required in initial investment of ruppes 500000 cash flow after for its estimated life of 4 years are as follows

Year. CFAT
1. 100000
2. 200000
3. 150000
4. 160000

1. Can employee productivity decline even if there is an increase in total output? Explain.

2. In Malaysia, prices were higher in 2018 compared to prices in 1980. Does this mean that the quality of life of Malaysians was much better in 1980? Do you agree? Give your reasons

A firm has an MPL=(K^0.5)/(L^0.5). Given K=100, L=121, Wages = 10, price of output=2
1. Is the firm operating efficiently
2. What is the optional rate of labor

Which among the three degrees of price discrimination,seems to be the most unrealistic to you?why?