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a) Ear Us (producer of hi-tech hearing aid) production function is Q = KL. The company over the years uses input rates of 60 and 75 for capital and labour respectively. The price of capital is $40 and labour is $35 per telephone. (i) Is there efficiency in production? Why? (04 MARKS) (ii) If $58,000 is allocated to production,what is the maximum output?
Given the economic situation today, outline the discretionary fiscal policy you would promote if you were president. In terms of the AD-AS model.
the next question refers to the followingtotal cost schedule for a competitive
1. let uxy x13y23 and let i 100 px py 1. write the foc for the consumers ump and compute the consumers demand
Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? Explain what the Fed should do if it wants to stabilize aggregate demand. I..
the only goods you buy are apples and oranges. both apples and oranges sell for 1 per piece and your income is 10 a
Since 1997, at least three million vehicles have been recalled due to air bag related troubles. Of these, roughly half were due to troubles of the sort that only time and road experience are likely to reveal.
currently the interest yield on short term treasury bills is near zero. longer term rates for mortgages are under 4.
Suppose it is known that the distribution of earnings for government workers is relatively less disperse than that for workers in the private sector. Use the Roy model to explain which type of workers - skilled or unskilled
part 1 you work for the local hospital. in a meeting your boss mentioned that profit margins were declining.the
what are the most significant factors that have led to the development of the long-term care system as it currently
Consider a firm with total short-run cost function C=a+b.Q. New legislation means that it should pay an environmental tax which is the fixed sum, independent of whether it produces any output.
With a high and growing US trade deficit, many hope that a depreciation of the dollar would help close the deficit. Explain the logic behind this prediction.
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