Economics Answers

A bicycle manufacture faces a horizontal demand curve . the firm's total cost are given by the equation . TVC = 150Q - 20Q2 + Q3 where Q is the quantity. Below what price should the firm shut down opera

What are the requirements for modern methods of farming?

What relationship does the demand for money has with income and interest rate?

Suppose a worker with an annual discount rate of 0.05 percent currently resides in New South Wales and is deciding whether to remain there or to move to Victoria. There are three work periods left in the life cycle. If the worker remains in New South Wales, he will earn $20,000 per year in each of the three periods. If the worker moves to Victoria, he will earn $30,000 in each of the three periods. The cost of moving is $1000 and it would cost the worker $500 more per year to live in Victoria. If the worker decides to move she will be separated from her friends and family. The psychic costs of the workers move is estimated at $10 000. Will the worker make the move? Why or Why not?

[5 points] For what values of β is the marginal product of labor increasing in the amount of labor used? For what values of β is it decreasing? For which values of β does the Law of Diminishing Marginal Returns hold? Why? [Hint: You might consider the values of β for which the partial derivative of the marginal product of labor with respect to the amount of labor used is positive to answer the first part of the question

Assume that the economy is in equilibrium at a level of output below that is associated with full employment in the economy.

a. Show graphically, methods by which the economy might be move towards full employment.
b. Which variables would have to be affected in each case to bring about the relevant changes in aggregate supply or aggregate demand?
c. Which of these variables is it most likely that government could influence strongly? Explain.
d. Classical economists believe that if the economy is left on its own, without any intervention such as in a. above, there will be automatic adjustments towards full employment equilibrium. Explain.

The rate of interest is a price:

a. Of what is it the price?
b. What determines this price? (Sketch a relevant graph of the money market).
c. What factors influence the demand for money?
d. What factors influence the supply of money?
e. If the money market is in short-run equilibrium, explain the adjustments that will take place for:
i) an increase the in money supply
ii) increase in the demand for money

Suppose that the supply curve for econometrists is given by w = 10 + 5L, while the demand curve is given by w = 50 - 3L, where w = annual earnings in thousands of dollars per year and L = thousands of econometrists.

A. Find the equilibrium wage and employment levels.
B. Now suppose that the demand for econometrists increases and the new demand curve is w = 70 – 3L. Assume that this market is subject to cobwebs because it takes about three years to produce people who specialize in econometrics. While this adjustment is taking place, the short –run supply of econometrists is fixed. Calculate the wage and employment levels in each of the first five rounds.
C. Find the new long-run equilibrium wage and employment levels
D. Draw a graph of the cob web model above with clear labeling of wage and corresponding employment level in each round.

Using the Keynesian transmission mechanism, illustrate and explain the effect of an decrease of repo rate in the economy

in the houshold she shares with her parents, little chelseas joy is a non rival, non excludable good. Bills marginal willingness to pay for joy for chelsea is 100-2Q. Hillarys is 200-Q. little chelsea has no money and cannot borrow, beg, or earn any. the marginal cost of procuring joy for chelsea is 6Q.

a) what is chelseas mwtp for her own joy
b) graph the households mwtp for, and the marginal cost of chelseas joy.
c)how much joy is it efficient for the household to buy for chelsea
d) if hillary is too mad at bill to talk to him, is the household likely to buy the amount you gave as your answer in part 3