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1. Why do we hire workers, skilled and unskilled, and machines until the ratio of the MP/P is the same across all three groups?
2. What happens to the elasticity of supply of a resource like labor over time? Explain your logic.
A 5 percent increase in the price of digital apps reduces the amount of tablet devices demanded by 3 percent. What is the cross price elasticity of demand? Are tablet devices and digital apps complements or substitutes?
Illustrate what was the growth rate of the GDP deflator between 1999 and 2000.
(a) List and explain any three deductions that may be available against gains or profits from employment. (b) Mr. Matata has approached you with a view to obtaining help in determining his taxable income for 2005. He has supplied the following inf..
During the past decade, India has invested about 22% of its GDP while China's investment rate has been double than that of India's, India's annual growth rate has been about 6 while that of China has been about 9%. Based on the Harrod-Domar Growth mo..
A country (“Home”) is populated with workers who produce either food (F) or clothing (C).There are 200 workers producing food and 100 producing clothing - these numbers are fixed. What is the autarky trade price (the relative price of food and clothi..
Discuss and explain similarities and differences in the roles economists play as policy makers and as scientists.
Joe and Rebecca are small-town ready-mix concrete duopolists. The market demand function is Qd = 10000 − 100P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. What is Joe’s best response function..
Assume an application generates chunks of 40 bytes and each chunk is encapsulated in a TCP segment with a minimum header and then an IP datagram with a minimum header.
The aggregate demand and aggregate supply graph has. Which of the following would not be included in aggregate demand?
A profit maximizing competitive firm uses just one input, x. Its production function is q=8x1/2 . The price of output is 16 and the factor price is 8. The amount of the factor that the firm demand is. (a) 10 (b) 22.63 (c) 64 (d) 48 (e) None of the ab..
When is international trade an opportunity for workers? When is it a threat to workers? What is meant by the term industrial policy? How do governments attempt to create comparative advantage in sunrise sectors of the economy? What are some of the pr..
If the current market rate is 8% interest compounded semiannually, what is the bond's price?
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