а) Indicate whether each of the following statements applies to microeconomics or macroeconomics: i. The unemployment rate in Bangladesh was 9.7 percent in March 2019. ii. A Bangladeshi software firm discharged 15 workers last month and transferred the work to India, iii. Extreme cold weather in northern region of Bangladesh reduced the rice production and caused the price of rice to rise. iv. Inflation rate in Bangladesh decreased by 2.4 percent in 2018. v. Last week Sonarbangla Bank (a private commercial bank of Bangladesh) lowered its interest rate on business loans by one-half of 1 percentage point. vi. The GDP growth rate rose by 3.5 percent from July 2018 to June 2019. b) Graphically explain how each of the following events affects the location of a country's production possibilities curve: i. The quality of education increases. ii. The number of unemployed workers increases. iii. A new technique improves the efficiency of extracting copper from ore. iv. A devastating earthquake destroys numerous production facilities. 0123 a) Q. 357 9 Write the proper equation and graph considering the above table. b) Why does quantity supplied go up as price goes up? c) Briefly discuss the price ceiling and price floor in the context of Bangladesh. Define cross elasticity. Suppose a consumer's demand for Rim detergent a) decreases from 5kg to 4kg as income increases from Tk. 50.000 to Tk. 55,000. Now, calculate the income elasticity and explain the elasticity coefficient. b) How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged? i. Price falls and demand is inelastic.
а) Indicate whether each of the following statements applies to microeconomics or macroeconomics: i. The unemployment rate in Bangladesh was 9.7 percent in March 2019. ii. A Bangladeshi software firm discharged 15 workers last month and transferred the work to India, iii. Extreme cold weather in northern region of Bangladesh reduced the rice production and caused the price of rice to rise. iv. Inflation rate in Bangladesh decreased by 2.4 percent in 2018. v. Last week Sonarbangla Bank (a private commercial bank of Bangladesh) lowered its interest rate on business loans by one-half of 1 percentage point. vi. The GDP growth rate rose by 3.5 percent from July 2018 to June 2019. b) Graphically explain how each of the following events affects the location of a country's production possibilities curve: i. The quality of education increases. ii. The number of unemployed workers increases. iii. A new technique improves the efficiency of extracting copper from ore. iv. A devastating earthquake destroys numerous production facilities. 0123 a) Q. 357 9 Write the proper equation and graph considering the above table. b) Why does quantity supplied go up as price goes up? c) Briefly discuss the price ceiling and price floor in the context of Bangladesh. Define cross elasticity. Suppose a consumer's demand for Rim detergent a) decreases from 5kg to 4kg as income increases from Tk. 50.000 to Tk. 55,000. Now, calculate the income elasticity and explain the elasticity coefficient. b) How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged? i. Price falls and demand is inelastic.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:а)
Indicate whether each of the following statements applies to microeconomics or
macroeconomics:
i. The unemployment rate in Bangladesh was 9.7 percent in March 2019.
ii. A Bangladeshi software firm discharged 15 workers last month and transferred
the work to India,
iii. Extreme cold weather in northern region of Bangladesh reduced the rice
production and caused the price of rice to rise.
iv. Inflation rate in Bangladesh decreased by 2.4 percent in 2018.
v. Last week Sonarbangla Bank (a private commercial bank of Bangladesh)
lowered its interest rate on business loans by one-half of 1 percentage point.
vi. The GDP growth rate rose by 3.5 percent from July 2018 to June 2019.
b) Graphically explain how each of the following events affects the location of a
country's production possibilities curve:
i. The quality of education increases.
ii. The number of unemployed workers increases.
iii. A new technique improves the efficiency of extracting copper from ore.
iv. A devastating earthquake destroys numerous production facilities.
0123
a)
Q. 357 9
Write the proper equation and graph considering the above table.
b)
Why does quantity supplied go up as price goes up?
c)
Briefly discuss the price ceiling and price floor in the context of Bangladesh.
Define cross elasticity. Suppose a consumer's demand for Rim detergent
a)
decreases from 5kg to 4kg as income increases from Tk. 50.000 to Tk. 55,000.
Now, calculate the income elasticity and explain the elasticity coefficient.
b) How would the following changes in price affect total revenue? That is, would
total revenue increase, decrease, or remain unchanged?
i. Price falls and demand is inelastic.
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