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Q1. Given production function f(x,y)= (cx^[a+b])(y^[b-a])where a, b, c are positive and b>a,
a. Discuss the returns to scale, marginal product of inputs, and technical rate of substitution. Show that whether they are increasing, constant, or decreasing?
b. Given the cost of x and y are w and u, and the price of output is p, find out the best inputs levels that would benefit you the most.
Q2. Use a model of the money market to explain why changes in nominal or money GDP are associated with changes in interest rates. Theoretically, how could changes in the money supply be used to keep interest rates at the same level?
Calculate the constant debt-GDP ratio that the country can achieve if the country runs a primary budget deficit of 3%. Is this debt-GDP ratio stable.
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium.
After allowing for sleep and personal care, she has 70 free hours each week and must split these hours between work to earn money.
If today's production of capital goods exceeds the depreciation of capital.
In which of the following cases should the United States produce more noodles than it wants for its own use and trade some of those noodles to Italy in exchange for wine.
What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.
movements along the consumption function while changes in wealth lead to a shift of the consumption function.
What role does Mudaraba allow IAH, in their capacity as Rabbul Mal.
Walmart founder Sam Walton amassed an enormous fortune in discounts retailing one of the most viciously competitive markets imaginable.
Identify three types of competition that most firms encounter other than competition from other firms in their industry in their home country.
DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
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