Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
In the 14th century, Europe experienced a devastating epidemic of bubonic plague. This epidemic was called the Black Death. About a third to half of the whole population in Europe died. This problem studies how the Black Death affected the well-being of those who were lucky to survive the plague.In Europe of that time, labor L and land X were main factors of production. Both labor and land were in fixed supply: everybody capable of working would work in the field. Suppose the supply of labor is equal to L¯ and the supply of land is equal to X¯. The production function takes the form Y = L^(1/2)X^(1/2).
(A) Obtain the equations for the demand for labor and the demand for land.
(B) How do the equilibrium employment, real wage, real rental rate, and output change in responseto the Black Death? Show these changes on two diagrams: the labor market and the land market.1
(C) Let's look at workers and land owners. How does the Black Death affect income inequality: who loses from the epidemic? Who gains?
(D) (Harder!) Consider the production function in general form Y = LαXβ. Let the reductionin population be 50%. Suppose, on average, wages rose by 90%. What value of α would beconsistent with these observations? Write out an equation you would need to solve to find α
The government taxes each old person T goods in each period, payable in fiat money. it destroys the money it collects - Find and explain the rate of return in in a monetary equilibrium.
The Conference Board publishes an index of Consumer Confidence that is good measure of the non price determinant of demand, customer expectations.
Discuss the implication on earnings and cash flow, and articulate why this project was chosen over the multitude of options that exists.
1. Describe how the Durbin Watson test in conducted and how the value of 2.0 is used when conducting D-W tests. 2. Explain why we need to use (tau)-test statistics, rather than t-test statistics in the D-F unit root tests 3. When and how so-called sp..
1. Suppose there is a small, closed economy that produces bananas. The domestic demand and domestic supply curves for bananas in this small, closed economy are given as:
A monopolist has to decide how to price its product in two markets and how to allocate product output between them. The markets are separated geographically by a national border
Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.
Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the short run, we expect that the ..
One of the major issues in macroeconomics is disagreement in the debate over policy activism versus policy rules. Illustrate what exactly is that disagreement.
Carson Company is considering a private placement of equity with Secura Insurance Company. a) Explain the interaction between Carson Company and Secura. How will Secura serve Carson's needs, and how will Carson serve Secura's needs
Suppose honey is produced in a beehive using bees and sugar. Each honey producer uses one beehive which she rents for $30 per month. Producing q gallons of honey in one month requires spending 5q dollar bees and 2q^2 dollars on sugar. How much profit..
Explain why does the magnitude of price elasticity differ in a and b above, although the same set of price-quantity combinations are used to compute the price elasticity of demand
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd