Economics Answers

choose two countries that interest you one rich and one poor. what is the income per person in each country? find some data on country characteristics that might help explain the difference in income investment rates, population growth rates , educational attainment ,and so how might you figure out which of these factors is most responsible for the observed income difference?

An economy comprises two consumers, 1 & 2 with two consumption goods bi-cycles (b) and Wheat (w). Both consumers have the same utility function µ(b,w) = bw. Bi-cycles and wheat are produced by two firms which use only labour according to the production functions, b=√1b and w=0.5√1wa
Both firms are owned by consumer 1, and consumer 2 owns 200 units of labour.
a) Find the production possibility frontier for this economy.
b) Find the competitive equilibrium.
c) Find competitive equilibrium, if every consumer owns 100 units of labour and owns one firm.

and what if her probability to fall ill is 2/3 while the probability of remaining in good health is 1/3...............let her utility function be given as U(y)=Y powered1/2? then?

(a)will sita accept the insurance?

(b)what is the maximum amountt that sita pay for insurance?

Assume that the hotel room market in some country satisfies the following set of assumptions:
- the market is perfectly competitive
-the market is presently in long run equilibrium
-all hotels are the same.
b) Suppose that World Travel Organization publishes the report, cautioning travelers about the risks of travelling to that country. Travelers are adviced to exercise causuion since protests, often at short notice, can be expected across major cities in that country. Travelers are also adviced not to stray from the roads and major routs without an experienced guide because there are many landmines that have not been cleared. The report states that the crime rate is relatively high. Therefore, travellers should avoid dark and unlit streets and stairways, avoid showing large sums of money in public and not to use ATMs after dark, etc. This puts a real dumper on traveler's desire to travel to that country.

Explain and indicant on the graphs for the previous part what will happen to in hotel business to price, quantity and profits in the short run and long run. Be sure to discuss and graphically point out both the effect on the individual hotel and the entire hotel market.

Assume that the hotel room market in some country satisfies the following set of assumptions:
- the market is perfectly competitive
-the market is presently in long run equilibrium
-all hotels are the same.
a) Graph the present long run equilibrium situation for both a hotel and teh entire hotel industry in that country (Put the number of hotel rooms on horizontal axis). Give a brief explanation for graphs.

1.) At the first meeting of Mountain Sky Carvers of DaMountains (MSCD), youn and your colleagues decide to lease a warehouse that can be used as a manufacturing facility for the co-op's carved eagles. The cost of this facility is $1,000 per month. Even though this is a small mountain community composed mainly of artisans, labor is not cheap and artists are only willing to work for $2,000 a month. Fill in all the remaining columns within the table below, and round all your answers to two decimal places (cents). Plot AVC, AFC, ATC and MC on the graph.

Table includes 10 columns, the first two are filled in with information:

Labor Output APP(L) MPP(L) TVC AVC TC ATC AFC MC
1 8
2 17
3 24
4 30
5 35
6 39
7 42
8 44
9 45
10 44
11 41
Other columns are form APP to MC, respectively, where information has to be put into them.

Othe questions regarding this problem:
a) What is AVC when output equals 45 birds (carved eagles).
b) What is the MC when ouput equals 39 carved eagles?
c) Minimum average total cost occurs when how many units of labor are employed?
d) When 8 units of labor are employed marginal cost is equal to?
e) Average variable costs are equal to $364 at what level of employment?

Graph looks like:
At x axis there is output (numbers 0, 10, 20, 30, 40, 50 are noted), and at the y- axis costs are given (numbers 0, 100, 200, 300, 400, 500, 600, 700, 800, 900, 1ooo).

can you give me the example?

a) Know the relationship between b (regression coefficient), its standard deviation, and t-statistic. Using the equation, be able to calculate the unknown third component given values for the other two components.
b) Know the relationship between R2, ESS, RSS, and TSS. Using the equation, be able to calculate the value of the unknown component given values for the other components.

Yi = B1 + B2Xi + ui

a) What does ui represent?
b) What is the expected value of the ui's and what is their probability distribution?
c) What does an "unbiased" estimator mean?
d) Why are the coefficients of a Sample Regression Function considered random variables?
e) Write the formula for the Variance of a regression coefficient and comment on how the various components of the equation influences the magnitude of the variance.

can you give me the example?

4.)(a) What terms are used to describe the way a variable moves when economic activity is rising or falling?

(b) What terms are used to describe the timing of cyclical changes in economic variables? (see #31 multiple choice)

6.) The Krugman Book Question:

(a) Define what economists mean by term “leverage.”

(b) What role does leverage play in the theory of the business cycle elaborated by Hyman Minsky?

(c) What is a “Minsky Moment?”

(d) According to Minsky’s theory, is proper application of Fiscal Policy (Government Spending) or Central Bank Policy capable of stabilizing the financial sector (and the overall economy) so as to avoid future large-scale recession?