Economics Answers

billy madison consumes. 100 units of x and 50 units of y. the price price of x roses from 2 to 3. the price of y remains at 4?

a) how much must billy's income rise so that he can exactly afford 100 units of x and 50 units of y

What is a Pareto superior allocation?

When is an allocation said to be Pareto improving?

At what point is Pareto Efficiency reached?

11. Define and put an example of frictional, structural and cyclical unemployment? What is

the natural rate of unemployment?

12. Describe the flowing concepts:

(a) Real versus nominal wage,

(b) Minimum wage versus efficiency wage

(c) What is steady-state unemployment? If a fraction of job separation is 1.5% and a fraction of job

finding is 23%. What will be the steady-state unemployment rate?

Let’s say, in September 2018 the Walton (Bangladesh) have manufactured 100 LED TVs

(manufacturing cost was Taka 10 million) than usually they produce in a year. But they will start

selling these TVs on July 2019. (Fiscal Year is July to June in Bangladesh)

(a) Will the cost be counted in Bangladesh’s GDP FY2018-19?

(b) Instead, if the company would sell these TVs by June 2019 with a value of Taka 15 million – what

would happen to Bangladesh’s GDP FY2018-19?

If Veronica Vaughn spends all of her daily income on cigarettes and Yoo Hoo, she can afford 10 packs of cigarettes and 10 bottles of Yoo Hoo. She can also afford 6 packs of cigarettes and 22 bottles of Yoo Hoo.

Draw verconica's daily budget set with packs of cigarettes on the x axis and bottles of yoo-hoo on the y axis

If Veronica Vaughn spends all of her daily income on cigarettes and Yoo Hoo, she can afford 10 packs of cigarettes and 10 bottles of Yoo Hoo. She can also afford 6 packs of cigarettes and 22 bottles of Yoo Hoo.

1. What is the relative price of cigarettes in terms of bottles of the yoo - hoo ( ie what is the ratio of prices Pc/ Py)

2. Exactly how much income does Veronica earn in one week if the price of cigarettes is $6? Write down the budget equation for Veronica that is a function of the packs of cigarettes C,and the number of bottle of yoo- hop, Y.

Suppose f(x,y)= 4x² + 3y².

a. Calculate the partial derivatives of f.

b. Suppose f(x,y)= 16. Use the implicit function theorem to calculate dy/dx.

c. What is the value of dy/dx if x=1, y=2? 

Suppose that an economy is composed of three classes. Labourers, traders and capital owners. The size of each of the classes are 60%, 30% and 10% respectively. Laborers produce all the output in this economy by using capital borrowed from the capitalists and then use the services of traders to market their produce. For this, the labourers have to pay 40% and 20% of their produce to the capitalists and traders respectively. a. Draw the Lorenz curve for the income distribution of this economy. Calculate the Gini Coefficient. b. Suppose that the capitalist are taxed 10% of their income and this is distributed as transfers to the labourers. Draw the new Lorenz curve and compare income inequality between the market income distribution and the disposable income distribution

Use a graph and indicate the production of 1000 units of output at minimum cost.

Consumption = 100+0.8Yd

Investment = 60

Taxes = -150+0.25Y

Government Spending = 80

Find Income and government deficit