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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 gross national product and net national product
the changes that would occur to the jalapeno pepper market if suddenly Mexican food became popular, especially spicy Mexican food.
Now suppose your utility functioin is U= (square root)Wealth. What is the maximum you will pay for the bike check-in now.
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
Deficient as the sole mechanism for determining the optimal level of resource employment.
Recent survey of high school students, it was found that the average amount of money spent on entertainment each week. Values are representative of all high school students.
A local community voting to raise property taxes to increase school expenditures
On aggregate demand does fiscal policy have a strong impact. Explain the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand.
What percentage of the total variation in the number of calls is explained by the regression model.
Explain the difference between a person's nominal income and their real income. Why is real income more important to that person.
Consider a small economy in which consumers buy only two goods pies and tarts. In order to compute the consumer price index for this economy for two or more consecutive years.
Using the calculations from part a, and the methods described in class, calculate a 99% confidence interval for the population mean forecast, where the population 3 would consist of all economists.
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