Economics Answers

Is a $2 billion increase in business inventories counted in that years GDP?

how different SAARC Countries Define Word "Rural Development"

Rita faces the choice problem between two gambles.In gamble one she wins 200 if a coin comes up head and loses 100 if the coin comes up tail. In gamble two she wins 20000 if coin comes up head and loses 10000 if coin comes tail.assuming her initial wealth w is 10000 find if a risk neutral Rita would acceor both or neither of the gambles

The demand curve for a consumer is p-d=b/q d and b are constants. Find the price elastically of demand?

Table below gives Usman’s marginal utility schedule for commodity X and commodity Y. Suppose that X and Y are the only commodities available, the price of X and the price of Y are $1, and Usman’s income is $8 per time period and is all spent. (a) Indicate how Usman should spend his income in order to maximize his total utility. (b) What is the total amount of utility received by Usman when he is at his optimal point? (c) State mathematically the equilibrium condition for the consumer. [Hint: Equi-Marginal Utility]

Assume the current price of maize K70 per 100 kg and the short run cost function, where Q represents bags of maize per year is:
TC = 800 + 16Q - Q^2
a) What is the profit maximizing output?
b) Calculate the profit for the output you got in (a) above?
c) Based on the rule that a firm should produce only if it covers its variable costs of production, what quantity should be produced to cover variable costs?
d) How much are the fixed costs of this business?

After carefully reading all the available information, prepare a two page (double-spaced) essay and answer the following questions:
Assume that we have the following data:
C=100+0.50Y
Ip=100-20r
Mt=0.10Y
Ms=100-10r
M=80

a. Build the IS-LM function.
b. If we assume an increase in Investments by 100 units, calculate again the IS-LM functions.
c. The intersection of IS-LM functions defines four areas. Analyze the behavior of the markets for goods and money for each area.

The table below represents the total product information for a company that produces baseball hats. The number of machines used in this production process is three; the number of machines cannot be easily modified, since they are leased according to a 12-month contract.

After graduating from college in 2010, Art Major\'s starting salary is $40757.00. Suppose Art Major has a cost of living adjustment (COLA) clause, i.e. an escalator clause in his labor contract so that he will be able to maintain this same level of purchasing power in real terms in 2011 and 2012. Using the information in the table below, how much will Art Major be earning in 2011 and 2012 if his salary keeps up with inflation? Round your answers to the nearest dollar.