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Q1. An industrial breakthrough raises a country's total factor productivity A by 10%. Show how this change involves the graphs of both the production function relating output to capital as well as the construction function relating output to labor.
Q2. The 9/11terrorist attacks caused the US airline travel demand curve to shift left by an estimated 30%. Use a supply as well as demand diagram to show the likely consequence on cost as well as quantity assuming the market is competitive. Point out the magnitude of the likely equilibrium cost as well as quantity effects, for eg. Would you expect equilibrium quantity to change by about 30%? Show how the answer depends on the shape as well as location of the supply as well as demand curves.
Outline reasons why the marginal revenue product differs between workers in different jobs.
The unsold computer is carried on XYZ's books as an $800,000 increase in inventory.
What is the confidence interval for the proportion of households represented at a town meeting. Survey of households in a small town showed that in 850 of 1,200 sampled households.
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
You arranged the subsequent information to use in evaluating the financial feasibility of starting your own agency.
Clarke's workers are highly skilled artisans with a great deal of job mobility. What impact would the wage increase have upon the firm's employment.
If the Federal Reserve adopts a restrictive monetary policy that leads to relatively high interest ratesin United States, what happens to the demand and supply of foreign currency and the dollar's exchange value.
The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
Assume a one-time decrease in population, possibly caused by an onset of disease or a sudden out-migration.
The biggest difference between Microsoft and software retailers is the market structure in which they operate.
Suppose that an increase in crime (O) also results in a per unit amount of social damage equal to d(d>0).
Suppose that on January 1, the price of one hundred yen was $0.80 and PPP held. Over the year, the Japanese inflation rate was 5 percent and the U.S. inflation rate was 10 percent.
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