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Question
Residents of the town of Marksburg like to consume canned pineapple, but each can of pineapple requires 20 people to produce and takes a month. If the town has a total of 800 people and consumption is limited by production, what is the maximum amount of cans of pineapple that residents can consume per month?
Suppose the slope of the consumption function is 0.75 and there was an increase in income of $100. Calculate the increase in consumption.
Calculate the per capita GDP for each country. Which answer is correct?
Set forth and describe 2 benefits from providing unemployment compensation to people out of work.
What is expansionary monetary policy? Why does expansionary monetary policy have an expansionary effect on the economy (that is, why does it cause aggregate demand to increase)? Please explain.
Ten competitive saw mills currently supply lumber to a market whose demand q, depends on lumber price, p, as follows,
Consider an economy with the following Cobb-Douglas production function (note that this production function does not contain natural capital). If the capital stock and real GDP grows at 3 percent per year, labor hours grow at 4 percent per year, and ..
Is financialization of the economy desirable? What is meant by this? And what are the views on this issues?
If gross investment is not large enough to replace capital that depreciates in particular year, is net investment greater or less than zero? What happens to our production possibilities?
Discuss the following: Modern marginalist analysis leaves little room for political economy as practiced by the Classical Economists. Do you think the transition has been a good one? What has the focus on quantitative economics missed that the mor..
Consider an economy with two labor markets one for manufacturing workers and one for service worker. Suppose initially that neither is unionized.
Consumption is $6 trillion, investiment is $2 trilion and government purchases are 2.5 trillion. The country exports $1 trillion and imports 1.5 trillion. Find the net exports and solve for the level of aggregate demand.
Oligopoly problem - Let the profit and cost functions be p(yT) = 60 - yT, Each firms cost functions equal the square of its output.
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