Economics Answers

4. a. Name a product that has a price that adjusted very frequently in the last year. Explain why.                 

b. What is the difference between monopolistic competition and oligopoly? Explain with local   examples. 

relationship between three stages of short-run production and production elasticity

aggregate investment is independent of economic growth.” explain and critically appraise the economic theory underpinning this statement.

If Maria estefan disposable IncomeIncreaseFrom 600 to 650

And her level of personal consumption expenditures increase from 450 to 520 You may conclude that’s her marginal propensity to

Market Equilibrium: Mathematical Approach

Price (In Thousand)

Employed 95,000

Unemployed 5,000

Not in the labor force 80,000

The labor force equals?

What factors determine the effectiveness of discretionary fiscal policy?

An economy is currently in equilibrium. The following figures refer to elements in the national

income accounts.

$ Billions

Consumption (total) 60

Investments 5

Government expenditure 8

Imports 10

Exports 7

g. Given an initial level of national income of $80 billion, now assume that spending on exports

rises by $4 billion, spending on investment rises by $1 billion, whilst government expenditure

falls by $2 billion. By how much will national income change?

You are a manager at Glass Inc. a mirror and window supplier. Recently, you conducted

a study of the production process for your single-side encapsulated window. The results

from the study are summarized below and are based on the eight units of capital

currently available at your plant. Workers are paid $60 per unit, per unit capital costs

are $20, and your encapsulated windows sell for $12 each. Given this information,

optimize your human resource and production decisions. Do you anticipate earning a

profit or loss? Explain carefully.

Labor Output

0 0

1 10

2 30

3 60

4 80

5 90

6 95

7 95

8 90

9 80

10 60

11 30

What is a multiplier