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In the production function, Y = A F(K, L), identify each variable. What does an increase in A mean?
If labor’s share of income is 80% and capital’s share of income is 20%, how would the Cobb–Douglas production function be written?
If both capital and labor increase by the same proportion, would the economy be expected to experience diminishing marginal returns?
What is total factor productivity, and how is it calculated?
Suppose that it is known that labor receives 25% of national income. With a Cobb-Douglas production function and an initial level of real GDP of $10,000, what happens to real GDP if both capital and labor double?
A needy family of a mother and three children currently receives cash benefits that average $12 per day. The mother of this family is allowed to earn an average of $4 per day before her benefits begin to decline. After that, for each dollar earned..
Demonstrate each of the following events by a production possibility frontier graph, and examine what the effects of it were on economic growth;
Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
a). Derive the equation for the IS curve b)Find the equation for LM curve. c)express both IS and LM curves in terms of r, and graph both curves.Find their slopes. d) Calculate the equilibrium levels of real utput, interest rate, planned investment, a..
What is the expected rate of return on each stock if the market return is equally likely to be 5% or 20%? c. If the T-bill rate is 8%, and the market return is equally likely to be 5% or 20%, draw the SML for this economy. d. Plot the two securitie..
Find an article from the media (internet, newspapers, magazines, etc.) on a current event that addresses an economic concept (e.g., consumption, saving, investment, real GDP, marginal propensity to consume, income multiplier, etc.). Write a one t..
A number of companies exist that specialize in "payday loans." Payday loans are small loans often for a few hundred dollars or less that are made to low-income borrowers. Often these borrowers have poor credit histories and few assets and would ha..
Optimal consumption. The following Table describes the demand for tickets to the opera, during the two=-week season.
Is a monopolist subject to any competitive pressures? Explain. Would an unregulated monopolist have an incentive to operate and produce efficiently why or why not 2-)Are the following statements both correct Are they inconsistent with each other a..
How does the US Department of Agriculture calculate the official poverty level What government assistance programs does the Census Bureau consider when calculating household income What programs are ignored
Illustrtae what position should the fund manager take to hedge exposure to the market over the next two months.
Illustrate what is the least-cost input-combination of labor and capital and how much output is produced with that set of resources.
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