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1. The population of the world in 2003 was 6.314 billion. It grew between 1975 and 2003 at an annual rate of 1.6%. Assume that it continues to grow at this rate.
a. Compute the doubling time. (Understand the Rule of 72)
b. Estimate the world population in 2048 and 2093 (assuming all other things remain unchanged).
2. Suppose a country's population growths at the rate of 2% per year and its output grows at the rate 3% per year.
a. Calculate the rate of growth per capita output.
b. If instead its population grows at 3% per year and its output grows at 2% per year, calculate its rate of growth of per capita output.
Find total revenue for quantity equal to 10,000, 20,000, and so on. Illustrate what is the marginal revenue for each 10,000 increase in the quantity sold.
Imagine you are the chairman of the Federal Reserve. Assume your objective at present is twofold; to stabilize inflation and economic activity. Given your objective, describe your response to each of the following scenarios in math, pictures, and wor..
Q1-You decide to hedge your position in the stock and buy options at the fair market value , when strike prices of 60$. a) What is the value of the option premium to hedge your position
A firm uses steel and aluminum to produce auto parts. The current input mix used by the firm is such that the marginal product of aluminum is equal to 800 units, while the marginal product of steel is equal to 500 units. Please explain in words what ..
What are the two methods the FDIC has of handling bank failures. Compare and contrast these two. Which tends to be the most costly and why? Explain the trade-off, in bank regulation, between stability and the absence of moral hazard. In what ways did..
Crowding out when the government use expansionary fiscal policy typically
One assumption of the supply and demand model is that all goods that are bought and sold are identical. Why do you suppose economists commonly make this assumption? Does the supply and demand model lose its usefulness if goods are not identical?
A decision-maker's preferences over the set A=(a,b,c) are represented by the payoff function u for which u(a)=0, u(b)=1, and u(c)=4/ Are they also represented by the function u for which u(a)= -1, u(b)=0, and u(c)=2? How about the function w for whic..
Consider the following production function: f(k,l) = k^1/3 + l^1/3. Does an increase in the tax increase the cost linearly? Why or why not? HINT: Consider the partial derivative of the cost function with respect to t.
Which of the following demonstrates that a country has an unstable business environment?
i) A thorough discussion on both the pros and the cons of using robots. ii) The discussion must be address ethical issues that may arise from the action of the company
Under a monopsony scenario explain why the marginal labor cost is above the supply curve (average labor cost). What is the nature of inefficiency or misallocation associated with monopsony power?
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