Economics Answers

Show that if the importing country faces an upward sloping foreign supply curve (excess supply curve), a tariff may raise welfare in the importing country.

Use the AD-AS model graph to explain the effect of a negative supply shock on the price levels and output levels in the economy

Definition of long run profit maximization and example?

in a market for a given commodity the quantity demand was 14 units hen the market price was 6 birr, when price was increases to 8 birr the quantity demand was decreased to 12 units. what is the elasticity of demand ?

given the production Q=L^1/2 K^1/2 price per unit of K and L is birr 2 and birr 4 respectively and total cost is birr 80 a) determine the maximum output subject to the cost constraint b)caculate the MRTS_l,k at equilibrium point

Population: 60 Million

Out of Labour force: 10milion

Unemployed People: 10million

Employed people: 25million

a.Calculate the non-participation rate

b. Calculate the labour force

c. Calculate the unemployment rate

d.calculate the labour force participation rate

Consider the following payoff matrix, where the payoff are profit/losses of a firm in millions

Firm B

Low Price High Price

Firm A Low Price (10, 10) (30, -10)

High Price (-10, 30) (40, 20)

Based on this payoff matrix in table, determine:

(i)                Whether firm A has a dominant strategy

(ii)               Whether firm B has a dominant strategy

(iii)              The Nash equilibrium if there is any.

What is a foreign exchange rate? (2) (a) The rate at which the currency of one country trades for the goods of another country. (b) The rate at which one country’s goods trade for those of another country. (c) The rate at which currencies of different countries are exchanged. (d) The rate at which one country’s currency trades for gold provided by another country

 In the Keynesian model, an introduction of a proportional tax will:

Discuss the three broad functions of the government