Reference no: EM131019303
Homework #1
1. Math Review
1.1 Point A with coordinates (P=10, Q=1) and point B with coordinates (P=5, Q=11) belong to a straight line. Let P be on the vertical axis and Q on the horizontal axis.
a. Draw a straight line passing through both points.
b. Find the slope of the line.
c. Give the equation of that line.
d. Indicate the vertical and horizontal axis intercepts.
1.2 Suppose that line 1 in the figure below is represented by the equation, Y = 80 - 3X and line 2 in the figure below is represented by the equation, Y = 2X + 20. Find the value of Z.
2. Positive and Normative Statements
Identify whether the following statements are normative (N) or positive (P).
2.1 What we need is a government that not only spends -- but spends more wisely.
2.2 The unemployment rate is 5% this year.
2.3 Microeconomics is the study of consumer choice, firms, and markets.
2.4 More women should study for an MBA.
2.5 Society should take measures to end gun violence.
3. Production possibility frontier
Besaid Island produces two goods, bicycles and wheat. In the following table, different feasible production combinations are given for Besaid Island. Assume that Besaid Island's production possibility frontier is linear between combinations A to B, B to C, C to D and D to E.
|
Combination
|
Bicycles
|
Wheat
|
|
A
|
1,000
|
0
|
|
B
|
800
|
800
|
|
C
|
600
|
1,200
|
|
D
|
300
|
1,600
|
|
E
|
0
|
1,800
|
3.1 Draw Besaid Island's production possibility frontier with bicycles on the vertical axis and wheat on the horizontal axis.
3.2 If Besaid Island is currently producing at combination C, what is the opportunity cost of producing 400 more units of wheat?
3.3 If Besaid Island is currently producing at combination D, what is the opportunity cost of producing 1 more bicycle?
3.4 Give one example of a production combination that is feasible but not efficient.
3.5 What is the difference between a straight-line production possibility frontier and a bowed-out production possibility frontier in terms of the opportunity cost?
4. Comparative advantage and Absolute advantage
4.1 What is the definition of comparative advantage?
4.2 What is the definition of absolute advantage?
Bikanel Island and Kilika Island have exactly the same amount of resources to use in the production of wheat and bicycles. Two points describing their production possibility frontiers are given in the following table. Assume that their production possibility frontiers are linear between these two points.
Bikanel Island
|
Bicycles
|
Wheat
|
|
1,000
|
0
|
|
0
|
2,000
|
Kilika Island
|
Bicycles
|
Wheat
|
|
500
|
0
|
|
0
|
250
|
Let bicycles be on the vertical axis and wheat on the horizontal axis.
4.3 Find the opportunity cost of producing 1 bicycle, both for Bikanel and Kilika Island.
4.4 Find the opportunity cost of producing 1 wheat, both for Bikanel and Kilika Island.
4.5 Relate the results in 4.3 and 4.4 to the slope of Bikanel Island and Kilika Island's production possibility frontiers.
4.6 Which Island has the absolute advantage in producing bicycles? And which country has the absolute advantage in producing wheat?
4.7 Which Island has the comparative advantage in producing bicycles? And which country has the comparative advantage in producing wheat?
|
What is the final value voh reached at the output
: Figure shows a PMOS transistor operating as a switch in the on position. (a) If initially Vo = 0 and at t = 0, vI is raised to VDD, what is the final value VOH reached at the output?
|
|
Explain the effects of such a policy on the market
: Find the equilibrium price and quantity - Find the consumer surplus and the producer surplus and find the equilibrium price and quantity on this market.
|
|
Calculate number of units of pasta imports for pasta land
: Using the point elasticity formula, calculate the price elasticity of demand of pasta at the equilibrium point. Now, assume that the world price of pasta is $60. Calculate the number of units of pasta imports for Pasta Land at this world price
|
|
Find the equation for a circle with a radius of nine
: Find the equation for each of the following items below- A line that passes through (6,2) and has a slope of 2. A line that passes though the points (2,4) and (8,16) and A circle with a radius of 9 and a midpoint at (3,3).
|
|
What is the definition of comparative advantage
: Draw Besaid Island's production possibility frontier with bicycles on the vertical axis and wheat on the horizontal axis - What is the definition of comparative advantage?
|
|
Determine producer surplus for this market
: Suppose you have the following information about a demand curve. What is the equilibrium price and quantity? Determine consumer surplus for this market. Determine producer surplus for this market
|
|
How many shares need to be sold
: What are the total indirect costs? (Enter the whole number for your answer, not millions (e.g., 1,234,567). Round your answer to the nearest whole number (e.g., 1,234,567).)
|
|
Find tplh for each case
: For a fair comparison, let the current source I = VDD/RD, which is the initial current available to charge the capacitor in the case of a resistive load. Find tPLH for each case, and hence the percentage reduction obtained when a current-source lo..
|
|
What is the expected range of id obtained
: An NMOS transistor with kn = 0.4 mA/V2 and a nominal Vtn of 0.4 Vis to operate in saturation at ID =0.2 mA. If Vtn can vary by as much as ±10%, what is the expected range of ID obtained?
|