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The number of repairs produced by a computer repair repair shop depends on the number of workersas follows:
NUMBER OF WORKERS NUMBER OF REPAIRS(PER WEEK)0 01 82 203 354 455 526 577 60
Assume that all inputs (office space, telephone, and utilities) other than labor are fixed in the short run.
a) Add two additional columns to the table and enter the maginal product and average product for each number of workers.b) Over what range of labor input are there increasing returns to labor? Diminishing returns to labor? Negative returns to labor?c) Over what range of labor input is marginal product greater than average product? What is happenning to average product as employment increases over this range?d) Over what range of labor input is marginal product smaller than average product? What is happenning to average product as employment increases over this range?
Elucidate why the price elasticity of demand differ along a demand curve, even if the demand curve is linear.
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Explain why might the unemployment rate tend to actually underestimate the unemployment problem, especially during a recession.
Write down the relationship between savings, capital formation, and consumption.
A profit maximizing firm produces three products X, Y and Z. The firm has no costs. There are three customers 1, 2 and 3. What will be the price of each product if the firm decides to sell them separately?
At the end of 2002, the (1-year) interest rate was 1% in the U.S., and 26% in Argentina. Recall that at the same time, the spot rate for the Argentine currency was Peso 4.00/$.
Illustrate which national financial policy programs are best for addressing the problems in the U.S. economy
Compute the AE function and plot it in diagram. What is total autonomous expenditure? What is slope of the AE function?
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
Elucidate do labor unions have a role to play today. How important is this role.
What is the effect on investment? What is the multiplier effect?
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
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