Learn more about our help with Assignments: Economics
Search & Filtering
Efficiency wages ... (multiple answers could be correct)
(a) are irrelevant for low skilled workers.
(b) are higher than market clearing wage.
(c) do not cause unemployment.
(d) are sometimes paid by employers to reduce shirking or turnover costs.
(a) are irrelevant for low skilled workers.
(b) are higher than market clearing wage.
(c) do not cause unemployment.
(d) are sometimes paid by employers to reduce shirking or turnover costs.
PERIOD QUANTITY PRICE INCOME ADVERTISING
1 120 8.00 10 3
2 165 4.00 22 7
3 120 7.00 20 5
4 165 3.00 20 8
5 180 4.00 30 8
6 90 10.00 19 6
7 150 4.00 18 10.2
8 190 1.60 25 9.3
9 160 5.00 30 8
10 200 2.00 35 9.5
a. Linear Relationship
i. Identify the dependent and independent variables.
ii. Estimate a linear relationship between the dependent variable and all the independent variables.
iii. What are the tests that you would use to determine the “goodness-of-fit” of the estimated demand function? Conduct the tests and explain the results.
iv. Discuss the economic implications of the various coefficients.
v. Compute the price elasticity of demand and income elasticity of demand in period 10. Elaborate your answers.
(15 Marks)
b. Non linear relationship.
i. Estimate a logarithmic form of the demand function.
ii. Is the estimated demand function “good”? Why or why not?
iii. Compare with the linear form above. Elaborate.
1 120 8.00 10 3
2 165 4.00 22 7
3 120 7.00 20 5
4 165 3.00 20 8
5 180 4.00 30 8
6 90 10.00 19 6
7 150 4.00 18 10.2
8 190 1.60 25 9.3
9 160 5.00 30 8
10 200 2.00 35 9.5
a. Linear Relationship
i. Identify the dependent and independent variables.
ii. Estimate a linear relationship between the dependent variable and all the independent variables.
iii. What are the tests that you would use to determine the “goodness-of-fit” of the estimated demand function? Conduct the tests and explain the results.
iv. Discuss the economic implications of the various coefficients.
v. Compute the price elasticity of demand and income elasticity of demand in period 10. Elaborate your answers.
(15 Marks)
b. Non linear relationship.
i. Estimate a logarithmic form of the demand function.
ii. Is the estimated demand function “good”? Why or why not?
iii. Compare with the linear form above. Elaborate.
Many economists pointed out that in the 2008 recession V (velocity) fell
dramatically.
a. Why would V fall?
b. What would this do to Q or P (= MV, or V=PQ/M)?
c. Is your answer consistent with what actually happened?
d. Explain
dramatically.
a. Why would V fall?
b. What would this do to Q or P (= MV, or V=PQ/M)?
c. Is your answer consistent with what actually happened?
d. Explain
Economics
determine whether each of the following items would cause an increase in the supply of wood tables.
1. a decrease in the price of the wood used to make the tables
2. an increase in the price of the tables
3. a decrease in the number of firms making wood tables
4. an increase in the price of metal and glass tables
1. a decrease in the price of the wood used to make the tables
2. an increase in the price of the tables
3. a decrease in the number of firms making wood tables
4. an increase in the price of metal and glass tables
In the long run a company that produces and sells popcorn incurs total costs of $1,050 when output is 90 canisters and $1,200 when output is 120 canisters. The popcorn company exhibits
What effect would each of the following have on the value of the firm?
(a) A new competitor enters the market.
(b) The production department achieves a technological breakthrough, which reduces
production cost.
(c) The firm is required to install pollution-control equipment.
(d) The work force votes to unionize.
(a) A new competitor enters the market.
(b) The production department achieves a technological breakthrough, which reduces
production cost.
(c) The firm is required to install pollution-control equipment.
(d) The work force votes to unionize.
Economics
Good Morning
I am a Business Economics Student. Today I need to know the real meaning of the Diamond of National Advantage as I have a project about. When we talk about it , should we talk about a specified country as a whole or only about a specific company ?
Thanks for your time
I am a Business Economics Student. Today I need to know the real meaning of the Diamond of National Advantage as I have a project about. When we talk about it , should we talk about a specified country as a whole or only about a specific company ?
Thanks for your time
Economics
Which of the following is true when comparing general ag price supports (when government purchases the surplus) vs ag deficiency payments.
a) Because govt purchases the surplus under ag price support policy, the quantity demanded will decrease.
b) Deficiency payments result in higher consumer prices.
c) Ag price supports reduce producer surplus (PS).
d) Deficiency payments result in lower consumer price for the product.
As I am able to select more than one answer it may be multiple...
My best guess is a and d but... I want to understand it before I submit my answer. Thank you.
a) Because govt purchases the surplus under ag price support policy, the quantity demanded will decrease.
b) Deficiency payments result in higher consumer prices.
c) Ag price supports reduce producer surplus (PS).
d) Deficiency payments result in lower consumer price for the product.
As I am able to select more than one answer it may be multiple...
My best guess is a and d but... I want to understand it before I submit my answer. Thank you.
Journal Entry of following transaction is required:
1. Zee On 1 January 2012, purchased a plant for PKR 2,000,000 cash
2. On 1 January 2013, Zee replaced the old plant at 90% book value with a new plant for PKR 3,000,000
1. Zee On 1 January 2012, purchased a plant for PKR 2,000,000 cash
2. On 1 January 2013, Zee replaced the old plant at 90% book value with a new plant for PKR 3,000,000
The labor demand curve is L = 21 − w, where w denotes real wage. Wage negotiations are based on expected prices. At the beginning of a period trade unions and employers negotiate wages, which remain fixed for the entire period. Expected prices are P^e = 4 and nominal wages are W = 20. Determine the expected output for the (partial) production function Y (L) = 21L − 0.5L^2.
=> Y^e = ?
=> Y^e = ?
