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Question 1:
(a) Using examples, explain how the theory of Purchasing Power Parity conforms to the Law of One Price.(b) According to you, how best does the Theory of Purchasing Power Parity explain exchange rates?(c) What are the factors influencing exchange rates in the long run?
Question 2:
The main difference between Federal Reserve System and other government agencies in the United States is its independence.
Describe why the Central Bank is expected to be more independent.
Joe won $365,000 a year for life in the state lottery. Use a labor-leisure choice analysis to answer the following: a. Show how Joe’s lottery winnings affect the position of his b
Uses of price and income elasticity of demand: The concept of price elasticity of demand has some uses whihc include the following: (i) Pricing of goods and services It is
This involves the characteristics of the production human as well as non human using the product concerned. For example it may pertain to the number and characteristics of children
The circular flow diagram is used to represent the interdependence that exists between sectors of the economy. The diagram illustrates that there are various collections of same e
1. Through graphs describe the relationship between the price, P , and the average total cost, ATC , for a firm in perfect competition when it earns an economic profit; earns a n
Suppose that a firm’s production function is given by Q=30L-3L2, where L is labor input and Q is the output. a) Derive and draw the firm’s demand for labor while the firm’s produc
short run equilibbrium
#quUse a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more women
Manpower-Population Ratios In this technique, manpower will not be planned for the economy as a whole. It will be planned for sectors or sub-sectors of an economy. For instanc
Returns to Scale Measuring relationship between scale (size) of a firm and output 1. Increasing returns to scale: output more than doubles when all the inputs are doubled
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