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Given that the demand and supply function of commodity X are Qd=20-1/6p while Qs=18+1/6p. Find the equilibrium price and quality for commodity X.
3) Production in the country of ECNLand can be characterized by the following function:
Y = 2K
0.2L
0.8 and that ECNLand initially has 200 units of labor and 800 units of capital.
a) Calculate the numerical value` marginal products of labor and marginal product of capital
Y = 2K
0.2L
0.8 and that ECNLand initially has 200 units of labor and 800 units of capital.
a) Calculate the numerical value` marginal products of labor and marginal product of capital
4. An economy consists of three workers: Larry,
Moe, and Curly. Each works ten hours a day and can produce two services: mowing lawns and washing cars. In an hour, Larry can either mow one lawn or wash one car; Moe can either
mow one lawn or wash two cars; and Curly can either mow two lawns or wash one car.
a. Calculate how much of each service is produced under the following circumstances, which we label A, B, C, and D:
• All three spend all their time mowing
lawns. (A)
• All three spend all their time washing cars. (B)
• All three spend half their time on each activity. (C)
• Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns. (D)
b. Graph the production possibilities frontier for this economy. Using your answers to part (a), identify points A, B, C, and D on your graph.
c. Explain why the production possibilities frontier has the shape it does.
d. Are any of the allocations calculated in part (a) inefficient? Explain.
Moe, and Curly. Each works ten hours a day and can produce two services: mowing lawns and washing cars. In an hour, Larry can either mow one lawn or wash one car; Moe can either
mow one lawn or wash two cars; and Curly can either mow two lawns or wash one car.
a. Calculate how much of each service is produced under the following circumstances, which we label A, B, C, and D:
• All three spend all their time mowing
lawns. (A)
• All three spend all their time washing cars. (B)
• All three spend half their time on each activity. (C)
• Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns. (D)
b. Graph the production possibilities frontier for this economy. Using your answers to part (a), identify points A, B, C, and D on your graph.
c. Explain why the production possibilities frontier has the shape it does.
d. Are any of the allocations calculated in part (a) inefficient? Explain.
The production function is
Q= 20 K0.5 L0.5
For the production function Q= 20 K0.5 L0.5 determine four combinations of capital and labor that will produce 100 and 200 units of output.
Plot these points on a graph and use them to sketch the 100- and 200-unit isoquants.
Q= 20 K0.5 L0.5
For the production function Q= 20 K0.5 L0.5 determine four combinations of capital and labor that will produce 100 and 200 units of output.
Plot these points on a graph and use them to sketch the 100- and 200-unit isoquants.
Consider the market for minivans. For each of the events listed here, identify
which of the determinants of demand or supply are affected. Also indicate whether
demand or supply increases or decreases. Then draw a diagram to show the effect
on the price and quantity of minivans.
a. People decide to have more children.
b. A strike by steelworkers raises steel prices.
c. Engineers develop new automated machinery for the production of minivans.
d. The price of sports utility vehicles rises.
e. A stock market crash lowers people’s wealth.
which of the determinants of demand or supply are affected. Also indicate whether
demand or supply increases or decreases. Then draw a diagram to show the effect
on the price and quantity of minivans.
a. People decide to have more children.
b. A strike by steelworkers raises steel prices.
c. Engineers develop new automated machinery for the production of minivans.
d. The price of sports utility vehicles rises.
e. A stock market crash lowers people’s wealth.
Last year Rocco Corporation's sales were $700 million. If sales grow at 6% per year, how large (in millions) will they be 5 years later?
Demand and supply in a market are described by the equations
Qd = 66-3P
Qs = -4+2P
(i) Solve algebraically to find equilibrium P and Q
Qd = 66-3P
Qs = -4+2P
(i) Solve algebraically to find equilibrium P and Q
Economics
Suppose that at a given moment the central Bank of Nigeria begins to worry publicly more than previously about inflation, while the US federal reserve does not but the actual Nigeria Monetary posture does change. What will be the effect, if any of these increase Central Bank of Nigeria concern about inflation on dollar/Naira spot rate?
Year
One Bag of Rice
One Soft Drink
A Loaf of Bread
Total Cost of Bundle
2016
₦5.00
₦8.00
₦3.00
2017
₦5.50
₦8.50
₦3.00
2018
₦6.00
₦8.50
₦3.00
If we select two bags of rice, (a) obtain the total cost of bundle in each period and the price index for 2017 and 2018 respectively taken 2016 as the base year.
b. Obtain the inflation rate for 2017 and 2018.
2. Suppose consumers change their consumption patterns over time in response to relative price changes, what implication does this have for the computation of price index?
One Bag of Rice
One Soft Drink
A Loaf of Bread
Total Cost of Bundle
2016
₦5.00
₦8.00
₦3.00
2017
₦5.50
₦8.50
₦3.00
2018
₦6.00
₦8.50
₦3.00
If we select two bags of rice, (a) obtain the total cost of bundle in each period and the price index for 2017 and 2018 respectively taken 2016 as the base year.
b. Obtain the inflation rate for 2017 and 2018.
2. Suppose consumers change their consumption patterns over time in response to relative price changes, what implication does this have for the computation of price index?
Economics
1 Suppose that at a given moment the central Bank of Nigeria begins to worry publicly more than previously about inflation, while the US federal reserve does not but the actual Nigeria Monetary posture does change . what will be the effect, if any of these increase Central Bank of Nigeria concern about inflation on dollar/Naira spot rate?
2 Agree or disagree with the following statement and explain your reason: The theory of relative purchasing power parity (]PPP) can be used to show why the Nigeria Naira is undervalued visa- vis the US dollar?
3 Assume that a group of Nations has an identical inflation rate, with which they are all initially comfortable but in one of them political development suddenly increase the degree of monetary conservation so that CBN aspire to a materially lower inflation rate than before. Will that Central bank be able to achieve the lower inflation rate it now target? On what factors does it’s ability to do so deepen?
2 Agree or disagree with the following statement and explain your reason: The theory of relative purchasing power parity (]PPP) can be used to show why the Nigeria Naira is undervalued visa- vis the US dollar?
3 Assume that a group of Nations has an identical inflation rate, with which they are all initially comfortable but in one of them political development suddenly increase the degree of monetary conservation so that CBN aspire to a materially lower inflation rate than before. Will that Central bank be able to achieve the lower inflation rate it now target? On what factors does it’s ability to do so deepen?
