Economics Answers

True or False: If the price of haircuts rises from $10 to $11, consumers' surplus will fall by 10%

Discuss the gross domestic product of Thailand and the current economic challenges faced by Thailand and reccmmend ways to overcome the problems.

Construct a line graph using the information about three quarter periods and following product sales data for the four products:
Quarter 1(July-September) product 1 $4,500,000 sales revenue, product 2 $2,500,000 sales revenue, product 3 $3,500,000 sales revenue and product 4 $4,500,000
Quarter 2 (October-December) product 1 $2,500,000 sales revenue, product 2 $4,500,000 sales revenue, product 3 $1,500,000 sales revenue and product 4 $2,800,000
Quarter 3 (January-March) product 1 $2,000,000 sales revenue, product 2 $2,000,000 sales revenue, product 3 $3,000,000 sales revenue and product 4 $,5,000,000

Why was there a transition from the MDGs to the SDGs?

(A) the deadline for the MDGs had reached its end
(B) there was no progress made in the MDGs
(C) all the MDGs were achieved
(D) the focus on the goals had changed

Discuss the nature and scope of managerial economics

In the town of Rochester, widgets are sold by a competitive industry at an equilibrium price of $12 apiece. One day the city simultaneously imposes a price ceiling of $7 per widget and a sales tax of $5 per widget.

Main objective of trade after the second world war were

(A) westernization government's breakaway from protectionist measure
(B) reduction of governments intervention in the economy
(C) relieving the colonies from domination and control
(D) lift the ban on foreign and local currency trading

Choose the correct answer

1. A,B and C
2. A,B and D
3. A,C and D
4. B,C and D

3. According to the Okun’s Law, when the unemployment rate increases by 1 percentage point the GDP falls by approximately 2 percentage points. But our intuition suggests that it should be rather 1-to-1 relationship, i.e., when the unemployment rate increases by 1 percentage point the GDP should fall by approximately 1 percentage point:
For instance, you have 100 workers who sew jeans, each makes 10 pairs of pants per day; then your total production is 1,000 pairs of pants per day. If you lost one worker (a 1% decrease), the remaining 99 would together make 990 pairs of pants per day (a 1% decrease).
Explain why the decline in output (GDP) may not be proportional to reduction in the number of workers employed (increase in unemployment).

2. The firm’s marginal product of labour is given by MPL = 12 – 0.02L, where L is the number of workers employed by the firm.

a. If the firm’s product sells at price P = $10 per unit, how many workers would the firm employ at the market wage rate w = $12?

b. If the firm’s product sells at price P = $10 per unit, how many workers would the firm employ at the market wage rate w = $13?

c. Use your answers to the previous 2 questions to calculate the (arc) wage rate elasticity of demand for labour (if the firm’s product sells at price P = $10 per unit).

1. The individual supply of labour is given by the following equation:
w = 8 + 0.05L
where w is the wage rate ($/hr) and L is the number of hours (per week) that a worker would choose to work.
At w = $14/hr, what is the worker’s economic rent ($/week)?