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1. Muchuu is a wheat farmer who sells a bushel of wheat to millers for $10.00. The miller turns the wheat into flour and then sells the flour to a baker for $30.00. The baker uses the flour to make bread and sells the bread to a student for $60.00. The student eats the bread. What is the value added by each person? Calculate GDP.
Discuss the three methods of measuring National Income?
2. (a) Dr. Muchuu runs a sole firm in Zambia called Elena Enterprises such that he is the only supplier of infrared thermometers. Kindly state the scientific name given to Dr. Muchuu and briefly describe the features of Elena Enterprises. Graphically differentiate Elena Enterprises from a perfect competitive market.
(b) A certain region licensed only one firm to supply tap water within that region. Graphically illustrate why it is more economical to have a sole water supplier in a particular region.
3. Muchuu's old corolla emits a lot of carbon such that it contaminates the entire compound. This carbon emission state is closely related to two (2) depravities. Briefly explain these 2 economic depravities that affect literally most Zambians. (Hint: cause, effect and cure).
If the monopolist can maintain the separation between the two markets, what level of output should be produced in each market, and what price will prevail
If both the agency and the board are right about demand and supply, what is the free market price? What is the change in city population if the agency sets a maximum average monthly rental of $300, and all those who cannot find an apartment leave ..
The rationale and implications for the government to create arts and cultural institutions, sports stadiums, and / business districts.
Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $20 and 25,000 buckets were produced.
Consider a study to evaluate the effect on college student grades of dorm room Internet connections. In a large dorm, half the rooms are randomly wired for high-speed Internet connections (the treatment group), and final course grades are collecte..
Illustrate (Draw the graph) the following events with AS and AD shifts. Start with the initial graph then add the change to either the AS or AD.
Consider a firm selling two different products at two different plants. The cost function for both plants is given by C (q 1 , q 2 ) = q 1 2 + αq 1 q 2 + q 2 2 .
At the optimal level of production, an extra decanter can be sold for $70, thereby increasing total revenue by $70. Why does the firm not produce and sell one more unit?
Your team is in charge of computer support at a major U.S. retailer. Business has been growing fast, and your company is about to open several new facilities across the country. Management has asked your team to develop training materials for new ..
Suppose Morgan Guaranty, Ltd. is quoting swap rates as follows: 7.75 - 8.10 percent annually against six-month dollar LIBOR for dollars and 11.25 - 11.65 percent annually against six-month dollar
Two executives were arrested by authorities for embezzling money for their firm. Short of confusion the only had enough evidence to put them away for 10 Years.
A cost function for clinic visits in a small inner city clinic. determine the marginal cost for each level of output.
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