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How might this greater flexibility in labor markets and greater efficiency in financial markets lead to higher growth rates in real GDP per capita?
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Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are ...
ECON 101 SEU Calculate the Equilibrium Price and Quantity Micro Economics Questions
Question-1
Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below: (3 Marks)
Tables
Chairs
0
200
50
180
60
160
70
140
80
120
90
0
1. Explain production possibilities frontier (PPF) by putting tables on the Horizontal axis and chairs on the vertical axis. What is Bill’s opportunity cost of producing one additional table?
2. Currently Bill is producing 70 tables and 140 chairs. Is this allocation of resources efficient? Why?
3. Show this allocation on the graph and advise Bill how he can be more efficient.
Question-2
Explain by applying these concepts with examples. (2 Marks)
1. Rational people respond to incentives
2. Role of prices in allocating resources
Question-3
The table below shows the marginal benefit that Khaled earns from keeping his store open one more hour. Khaled has a marginal cost of $40 per hour. Khaled stays open 20 hours.(3 Marks)
Hours
Marginal Benefit Per Hour
20
200
21
140
22
110
23
70
24
40
25
10
26
0
1. Do you think Khaled’s decision to stay open 20 hours is optimal? Why?
2. How many hours do you advise Khaled to stay open? Why?
Question-4
Suppose the market for Computer is given by the following equations for supply and demand:
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Qd= 3300?2P
Qs= 500+8P
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2. Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.
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Finance Essay
Using the knowledge that you have acquired during the course, you need to prepare analysis of a specific corporate or spec ...
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ECON 101 SEU Calculate the Equilibrium Price and Quantity Micro Economics Questions
Question-1
Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are ...
ECON 101 SEU Calculate the Equilibrium Price and Quantity Micro Economics Questions
Question-1
Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His production possibilities are given in the table below: (3 Marks)
Tables
Chairs
0
200
50
180
60
160
70
140
80
120
90
0
1. Explain production possibilities frontier (PPF) by putting tables on the Horizontal axis and chairs on the vertical axis. What is Bill’s opportunity cost of producing one additional table?
2. Currently Bill is producing 70 tables and 140 chairs. Is this allocation of resources efficient? Why?
3. Show this allocation on the graph and advise Bill how he can be more efficient.
Question-2
Explain by applying these concepts with examples. (2 Marks)
1. Rational people respond to incentives
2. Role of prices in allocating resources
Question-3
The table below shows the marginal benefit that Khaled earns from keeping his store open one more hour. Khaled has a marginal cost of $40 per hour. Khaled stays open 20 hours.(3 Marks)
Hours
Marginal Benefit Per Hour
20
200
21
140
22
110
23
70
24
40
25
10
26
0
1. Do you think Khaled’s decision to stay open 20 hours is optimal? Why?
2. How many hours do you advise Khaled to stay open? Why?
Question-4
Suppose the market for Computer is given by the following equations for supply and demand:
(2 Marks)
Qd= 3300?2P
Qs= 500+8P
1. Calculate the equilibrium price and quantity.
2. Sketch the supply and demand curves on a graph indicating the equilibrium quantity and price.
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