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1. Pritchett and Summers argue that income per capita is strongly and positively related to health status when viewed across the world. The following table presents data from the year 2000.
Plot a graph of GDP per capita against life expectancy for the countries shown. Does your plot con?rm the Pritchett and Summers ?nding?
2. Suppose a ?rm has the following production technology for goods 1 and 2:
(a) Does Good 1 indicate economies of scale? Why?(b) Does Good 2 indicate economies of scale? Why?(c) Do the two goods indicate economies of scope? Why?
Suppose a monopolist producing Q units of output faces the demand curve P =20 -Q. Its total cost when producing Q units of output is TC = F + Q2, where F is a fixed cost. The marginal cost is MC = 2Q. a) For what values of F can a profit-maximizing..
Calculate marginal cost and marginal revenue for each level of output when market price and what is the firm's profit-maximizing level of output
IQ scores are normally distributed and assume that the average IQ for all Economics majors is 108 with a standard deviation of 11. what percentage of Economics majors would have an IQ of more than 118.
ome workers in the economy are paid a flat salary and some are paid by commission. Which of compensation scheme would require more monitoring by supervisors In which case do firms have an incentive to pay more than the equilibrium level
Assume a company has the following demand equation, Q = 1,000 - 3,000P + 10A, where Q = quantity demanded, P = product value, and A = advertising expenditures
1 a price discriminating monopolist produces two products that exhibit the following price elasticities of demand e1 -
Suppose the demand for gizmos is given by the following expression: P=20-5QD +4 I (Income) In this expresiion, P is the price gizmo, quantity is given in millions of units, and I is income.
Aura has a utility function given by U(X, Y) = 4X0.5Y0.5. The current prices of X and Y are $25 and $50, respectively. Laura currently has an income of $750 to spend on X and Y.
Explain how financial institutions fit into the circular flow diagram (and more specifically why they are important for economic stability and growth). In your own words, explain why financial institutions (and, by extension, financial markets)
1 suppose the market for grass seed can be expressed asdemand qd 100 - 2psupply qs 3pif government imposes a 5
the graph on the left shows the short-run marginal cost curve for a typical firm selling in a perfectly competitive
the benefits and costs of an investment project the purchase of a piece of machinery are those given in the following
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