Which of the following is not correct about the factors of production? A) Firms pay rent for natural resources. B) Owners of capital earn interest. C) Firms pay profit for human labor. D) Workers supply human power and they earn wage in return..
Q: A firm's production function follows: Q = 2 * (K^0.5) * (L^1.9) Where, in the short run, capital is…
A: production function shows the maximum production which can be produced with given level of inputs.
Q: Which of the following is a positive statement? O Interest rate is too low.
A: Positive statements are those statements that can be checked whether it is true or false. It is…
Q: 5.2 David gets $3 per week as an allowance to spend any way he pleases. Because he likes only peanut…
A: Although you have specifically asked for the solution of d to f, the question requires a solution of…
Q: Problem 03.041 Shifted Gradients Nippon Steel's expenses for heating and cooling a large…
A: A gradient starting at any other time is called a shifted gradient. The n value in the P/G and A/G…
Q: In this problem, we distinguish between labor and population in the Solow growth model. A proportion…
A: In the Solow growth model, the distinction between labor and population has an impact on the level…
Q: Question 3: Please define the following for the uk economy: Strong reciprocity Fiscal equity…
A: Economic policies refer to the decisions and actions taken by governments, central banks, and other…
Q: If an increase in aggregate expenditures results in no increase in real GDP we can surmise that the:…
A: Real Gross Domestic Product (GDP) is a measure of the value of all goods and services produced…
Q: Should government provide for health care
A: The field of applied health economics allows for a scientific and in-depth examination of the…
Q: When focusing on a married couple, one person’s non-labor income includes the labor earnings of…
A: Work-leisure choice model: Individuals need to trade-off between how many hours to work and enjoy…
Q: If Europeans travel to the US, they will their demand supply for US dollars and their of Euros.
A: The international market represents the relationship between the various nations. In the…
Q: The economy has part time workers of 20 million people, and full time workers of 140 million people.…
A: The unemployment rate is the percentage of people in the labour force who are unemployed. As a…
Q: A company estimates that the relationship between. unit price and demand per month for a potential…
A: Given information Demand function P=100.00-0.10D. Fixed cost=$17500 Variable cost=$40 per unit Cost…
Q: Consider a closed-economy. The economywide expected future marginal product of capital is MPKf = 50…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Bob and Doug spend their workdays making beer and donuts. Bob's Opportunity Cost of producing a unit…
A: Here, opportunity cost of producing one unit of donuts by Bob is given as 0.8 units of beer, while…
Q: Only typed answer Suppose that an economy has the following functions for C, I, G, and NX: C= 51 +…
A: Introduction In economics, a multiplier is a numerical coefficient that illustrates the relationship…
Q: A company produces and sells a consumer product and thus far has been able to control the volume of…
A: The production decision is the firm's short-run and long-run choice on output levels for the near…
Q: What are the subgames in the following game ? find all the SPNE
A: Subgame perfect Nash equilibrium is attained by using backward induction. We start at the end of the…
Q: If a tariff is introduced to a market with a downward sloping linear demand and an upward sloping…
A: A tariff is a tax imposed by a government on imported or exported goods. The purpose of a tariff is…
Q: 5.1 Thirsty Ed drinks only pure spring water, but he can purchase it in two different-sized…
A: The total amount of satisfaction that customers derive from consuming a commodity is the utility.…
Q: How much must you deposit each year into your retirement account starting now and continuing through…
A: To determine the annual deposits, equating the present value of perpetuity beginning 34 years from…
Q: A monopolist has marginal cost of $30 and faces an inverse demand of P-90-3q. They choose price (p₁)…
A: A monopolist is a person, organization, or business that has complete market dominance over a…
Q: What do we mean by monopolistics competition ? Why do we use this model to examine intra-industry…
A: Market structure represents the set up in which buyers and sellers communicate with each other to…
Q: The city of Fairyland has a labour force of 5000. 50 people lose their jobs each month and remain…
A: Since you have posted multiple questions, we will provide the solution to only the first question as…
Q: 3. The U.S. government introduced a variety of price controls in the 1970s, including controls on…
A: Price control refers to a government intervention in the market to regulate the prices of goods and…
Q: You are choosing between two goods, X and Y, and your marginal utility from each is shown in the…
A: Law of Equi-Marginal utility explains the relation between the consumption of two or more goods and…
Q: Suppose we have a market with linear supply and demand which is in equilibrium at price pº.…
A: In the free market, the equilibrium price and quantity is determined by the forces of demand and…
Q: Suppose the income of buyers in a market for an inferior good decreases and an technological…
A: A decrease in the income of buyers in a market for an inferior good will increase the demand for an…
Q: Consider the utility function U = 2√√₁ + 3√92. a) Solve for the uncompensated (Marshallian) demand…
A: A mathematical representation of a decision maker’s preferences over a set of alternatives is a…
Q: For each of the following sets of demand and supply equations, find equilibrium P and Q. Qs = 5P Qs…
A: Equilibrium is achieved by the intersection of the demand and supply conditions in the market such…
Q: 39. An economy described by the AS/AD model: C = 13+.8YD, I = 10, T = 10, t =.25, G = 35,…
A: Y = 13+.8YD + 10, T = 10, t =.25, G = 35, NX = 10-5P-.1Y AS = 5P.
Q: Noah walks past the same pharmacy every day. He realizes the pharmacy always changes its prices on…
A: Here, it is assumed that Noah watches the news on a Sunday and sees a story predicting an increase…
Q: What is your insights about higher tax imposition to networks that use social media to broadcast?
A: The introduction of elevated taxes on social media networks can have a considerable effect on…
Q: For a certain company, the cost function for producing a items is C(x) = 40 + 150 and the revenue…
A: Profit is the money you have left after paying for business expenses. In business usage, it is…
Q: According to the law of demand, an increase decrease of the price of hamburgers causes a decrease in…
A: In economics, demand refers to the desire, willingness, and ability of consumers to purchase a good…
Q: Calculate the present worth of all costs for a newly acquired machine with an initial cost of…
A: Formula for the ordinary annuity is given as:M * 1-1(1+r)nrM: Annuity value r: rate of interestn:…
Q: 1. If a man borrowed money from his girlfriend with simple interest rate of 12%, determine the…
A: Given,
Q: The demand the duopoly firms face is p = 100 – 2Q where Q = q1 + q2. Each firm has the following…
A: In a duopoly, where two companies control the market, each company's actions have an impact on the…
Q: Fiscal policy of increasing government expenditures can be more potent than monetary policy in…
A: Fiscal and monetary policy: Fiscal policy signifies the policies taken by the government of an…
Q: A social choice function satisfies the bottom criterion if, whenever a candidate is not at the…
A: "When it comes to choosing a winner in a political or social context, various methods can be used to…
Q: What is the effect if the cost of labor increases? O Price increases, quantity increases O Price…
A: In a market, labor is considered as a factor of production because it is required to operate…
Q: If resources R1 and R2 are substitutable, the decrease in price of R1 will Select one: Increase…
A: In economics, two goods or resources are substitutes when one good can replace another good as the…
Q: Why do you even need a checking account? Why not just use cash?
A: A checking account is a type of bank account that allows individuals to easily deposit, withdraw,…
Q: Consider two scenarios giving some information about price elasticity of demand. For each scenario,…
A: The increase in the quantity of an item demanded or consumed in accordance to its change in price is…
Q: The list provides examples of - 1. Dresses like Princess Kate wears sell out quickly 2. President…
A: The amount of an item or service that customers are willing and able to buy at a specific price…
Q: A financial institution is willing to lend you $2,000. However, you must repay $2,008 at the end of…
A: An investment is a possession or thing bought with the intention of making money or appreciating in…
Q: An economy only has two goods (A and B) which are produced. The goods are neither complements nor…
A: Given information There are 2 goods: Good A and Good B Both goods have a downward slopping demand…
Q: How do you keep track of how much money is in your account?
A: Money is anything which is used and widely accepted as medium of exchange. It is used to purchase…
Q: Price elasticity of demand is not only important for pricing strategy, but for market entry as well.…
A: Price elasticity of demand refers to the responsiveness of change in quantity demanded with respect…
Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…
A: The market depicted in the graph is monopolistically competitive market, in which there are many…
Q: Assume a competitive firm faces a market price of $60, and a cost curve of: C=0.003q³+50q+750. The…
A: In a competitive market , A firm will maximize profit where P = MC P is the market price MC is…
Which of the following is not correct about the factors of production?
A) Firms pay rent for natural resources.
B) Owners of capital earn interest.
C) Firms pay profit for human labor.
D) Workers supply human power and they earn wage in return..
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Which of the statement is FALSE? A. An increase in the relative price of good X will increase the real price of the factor that is used intensively in the production of good X. B. A decrease in the relative price of good X will decrease the marginal productivity of the factor that is used scarcely in the production of good X. C. A decrease in the relative price of good X will increase the inverse of the relative factor price that is used in the production in good X. D. A decrease in the relative price of good X will increase the marginal productivity of the factor that is used intensively in the production of good X.Assume that Alex uses capital and labour to produce a good. The unit price of capital is $2 and the unit price of labour is $4. The initial stock of capital is 40 units and the initial quantity of labour is 20. If the stock of capital decreases to 20 units, what should be the additional quantity of labour if Alex wants to incur the same cost?3. Duane breeds parrots for a living. He has discovered that the production function for parrot chicks (Q) is: Q=K0.5 p0.5 where K is capital (for example nest boxes, cages and the like) and F is parrot food. The price of K is $8 and the price of F is $2. (a) What type of production function is this? Explain. (b) Does this production function exhibit constant, increasing or decreasing returns to scale? Provide a graph of the function using Excel. (c) Find the marginal products of capital and food. (d) Suppose that Duane wants 144 parrot chicks, how much K and F should be employed to minimise costs. What is the cost of producing 144 parrot chicks? 1 1 (e) Suppose that Duane is faced with the same problem as in (e) except that he has a fixed amount of K. In fact, K = 16. How much F should be bought to minimise costs? What is the total cost?
- You are given a scenario where this a change in a factor of production or a change in demand for an item. You need to explain how this would change demand for labor. 1. The coronavirus pandemic forces people to shelter in place. You are an airplane mechanic looking for work in Louisville where UPS is headquartered.In the plot below, are capital and labor substitutes or complements. Why?What can be determined by the slope of the curve. The relationship between the relative price of cigars to soyabean (Pc / Ps) and the wage-rental ratio (w/r) is depicted by the SS labelled curve. Relative price of cigars, Pc/Ps SS Wage-rental ratio, w/r a) Neither good is capital-intensive b) Both are labor-intensive. c) Both are capital-intensive. d) Cigars are labor-intensive while soyabeans are capital-intensive.
- In our paper airplane company, some inputs were fixed and some were variable. Match the input to whether it was VARIABLE or FIXED. Paper- Stapler- Staples- Employees- Production space-The concept of production possibility frontier explains that a. any point within the curve is a combination of labor and capital input that fall short of putting all inputs to good use b. that capital is more that labor inputs c. any point within the curve is a combination of labor and capital input that is utilized d. that labor is more that capital inputs The concept of production possibility frontier explains that a. labor and capital combination is not enough to produce an output that have very minimal wastage b. level of output is optimal c. labor and capital combination is not enough to produce an output d. level of inputs is optimal more than zero but less than one in the concept of Income Elasticity means a. luxury goods b. substitute goods c. inferior good d. necessity goods1. The economy's income and expenditure The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Firms Markets for Goods and Services Markets for Factors of Production Based on this model, households earn income when Households purchase in markets for factors of production. Suppose Yvette earns $600 per week working as a doctor for the Medical Clinic. She uses $8 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Sean $225 per week to work the cash register. Sean uses $225 to purchase medical services from the Medical Clinic.
- In the short‑run specific‑factors model, consider a decrease in the stock of land. For example, suppose a natural disaster decreases the quantity of arable land used for planting crops. Round values to the nearest one-half unit. a. Demonstrate a change in the supply of land on the accompanying graph. b. New equilibrium wage is? c. New quantity of agricultural labor is?The demand for a factor of production (productive resource) is derived from the demand for the good the factor produces True Falsemarke Suppose that widgets can be produced using two different production techniques, A and B. The following table provides the total input requirements for each of five different total output levels. Q= 2 K L Q = 5 K L 7. Q= 1 Q = 4 Tech. K L K L K L 4 1 6. 9. 12 11 8. B 1 2 4 5. 12 15 Assuming that the price of labor (P) is $2 and the price of capital (PK) is $1, calculate the total cost of production for each of the five levels of output using the optimal (least-cost) technology at each level. To do this, complete the table below by calculating the total cost of production, filling in the missing values using the optimal (least-cost) technology at each level. (Enter your responses as whole numbers.) Q = 1 Q = 2 Q= 3 Q = 4 Q=5 Total Cost Enter your answer in the edit fielus and then click Check Answer. Help Me Solve This eText Pages Get More Help- Clear All Check Answer Cop %24 %24 48 25 %24