Economics Answers

Suppose that a technological advance in Japan lowers the world price of televisions.

a. Assume the U.S. is an importer of televisions and there are no-trade restrictions. How does technological advance affect the welfare of U.S consumers and U.S producers? What happens to total surplus in the United States?

b. Now suppose the United States has a quota on television imports. How does the Japanese technological advance affect the welfare of U.S consumers, U.S producers, and the holders of import licenses?

The world price of cotton is below the no-trade price in Country A and above the no-trade price in Country B. Using supply-and-demand diagrams and welfare tables such as those in the chapter, show the gains from trade in each country. Compare your results for the two countries.

Suppose the short run production function can be represented by

Q=60,000L^2-1000L^3 then, determine

A) the level labor employement that maximazes the level of output

B) the level of employment that maximazes APL and the maximum APL

Supose the perfectly competitve price is given as $46 and the total cost of the firm is given by TC=14X+2X^2, find

A) the prifit maximizing level of output for the firm

B) the profit of the firm

And show its graphical illustrations

12. Consider two cultures X and Z. In culture X, parents live for their children and grandchildren where their current income is divided among current consumption, saving for retirement, and investment in the education of their children. In culture Z, children are born as assets for their parents so that the current generation expects to be taken care of by the future generation. Output produced by the younger generation is divided into proceed and bequest for parents, and investment for future self-sufciency.

(a) What is the direction of flow of resource of investment in the two cultures?

(b) What is the implication of the two cultures for growth?

The marginal cost of a trade has been found to be MC=3Q^2+8Q+400.

determine the total virable cost of producing 100 units of the trades product. And show by graph

4. A country faced an unexpected build-up of foreign exchange earning following a positive price shock on the country’s main export in the international market. This gain was, however, accompanied by a soaring inflation. How and under what conditions, if any, can the build-up of the foreign exchange reserve trigger inflation?

3. Suppose a country targets an income level of Y ∗.

(a) Demonstrate, using graphs, that either fscal or monetary policies can be used to achieve the targeted level of income.

(b) What are the possible reasons for a country to opt for a particular policy (fscal or monetary) while both of them can yield similar level of income?

Suppose the short run production function can be represented by Q= 60,000L^2-1000L^3. Then, determine

A) the level labor employement that maximizes the level of output

B) the level of employement that maximizes APL and the maximum APL

2. Transmission mechanism is the process by which changes in the monetary sector (money market) affects variables such as income in the real sector (goods) market. explain.