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1. How does capital (physical) investment affect the marginal physical product of labor? Does more college education, which is part of human capital have the same kind of effect? Which is a better investment? You can supplement your response by giving an example. Make sure you use proper examples related to the question.
The elasticity of demand for a firm’s product is -4 and its advertising elasticity of demand is 0.12. Determine the firm’s optimal advertising-to-sales ratio. If the firm’s revenues are $70,000, what is its profit-maximizing level of advertising?
Which of the following institutions is NOT part of the shadow banking system? An investment bank is susceptible to events similar to bank runs, and may collapse if: The main difference between the financial crisis of 2008 in the United States and the..
If an 80% learning curve is expectedin the use of the SPC charts to reduce the cost of scrap, what would the percentage reductionin monthly
In a particular industry, labor supply is ES = 6w - 4 and labor demand is ED = 52 ? 2w, where E is the level of employment and w is the hourly wage. What is the equilibrium wage and employment if the labor market is competitive? What is the unemploym..
Assume that a country has a growing budget deficit, carries a very large debt, is in a period of high unemployment with interest rates almost at zero, and annual inflation and GDP growth of about 2%. Demand and supply of money Interest rates The Phil..
Using the Envelope theorem find all local optimum and saddle points for the function f(x) = (x2-1)3.
Cite the major functions of the district Federal Reserve banks. Brief overview of monetary policy. Brief overview of the Board of Governors.
a) Find the short run cost function CFK(q) when the wage is 6 and the rental rate of capital is 3 for a firm whose production function is F(K, L)=3K3/5L2/5. b) What is the elasticity of substitution for this production function?
You borrowed $21,061.82 to finance the educational expenses for your senior year of college. The loan will be paid off over five years. The loan carries an interest rate of 6% per year and is to be repaid in equal annual instalments over the next fiv..
If consumer incomes go up, which of the following is initially most likely? a an upward movement along the demand curve for cars b a downward movement along the demand curve for cars c a rightward shift in the demand curve for cars d a leftward shift..
What happens when "imperfect market information"/"asymmetric information" between buyers & sellers occurs relative to adverse selection
Suppose that the manager of a paint supply store wanted to estimate the correct amount of paint contained in one-gallon cans purchased from a nationally known manufacturer. It is known from the manufacturer’s specifications that the standard deviatio..
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