Does your answer to part b violate the rule describing the relationship between average and marginal values? Explain.

Problem Set #3
1. Suppose that the hourly output of chili at a barbecue  is characterized by q = 20√KL
where K is the number of large pots used each hour and L is the number of worker hours employed.
a. Graph the q = 2000 pounds per hour isoquant.
b. The point K = 100, L = 100 is one point on the q = 2000 isoquant. What value of K
corresponds to L = 101 on that isoquant? What is the approximate value for the MRTS at K = 100, L = 100?
c. The point K = 25, L = 400 also lies on the q = 2000 isoquant. If L = 401, what must K be for this input combination to lie on the q = 2000 isoquant? What is the approximate value of the
MRTS at K = 25, L = 400?
d. For this production function, the MRTS is
MRTS = K/L.
Compare the results from applying this formula to those you calculated in part b and part c. To convince yourself further, perform a similar calculation for the point K = 200, L = 50.
e. If technical progress shifted the production function to
q = 40√KL all of the input combinations identified earlier can now produce q = 4000 pounds per hour.
Would the various values calculated for the MRTS be changed as a result of this technical progress, assuming now that the MRTS is measured along the q = 4000 isoquant?
2. Consider the production function f (L, K) = L + K. Suppose K is fixed at 2. For this function, the marginal product of labor, MP(L), is 1. (a) Find the algebraic expression for the average product of labor AP(L). (b) Graph the total product of labor function TP(L), the average product of labor AP(L), and the marginal product of labor MP(L). Does your answer to part b violate the rule describing the relationship between average and marginal values? Explain.
3. For each of the following production functions, determine if the technology exhibits increasing, decreasing, or constant returns to scale.
a. f (L, K) = 2L + K
b. f (L, K) = √L + √K
c. f (L, K) = L2 + K
d. f (L, K) = √LK + L + K

Credit for these references will be given only if the concepts are used properly. How do these concepts relate to your own life?

Read the article carefully and relate it to at least two important “key concepts” we have covered during Week One. Only key concepts found on the list of every chapter will be accepted.

When referring to a key concept, you must use CAPITAL LETTERS to name and define them. Credit for these references will be given only if the concepts are used properly. How do these concepts relate to your own life?

Based on this, are usury laws are a good idea? Is this an appropriate role for the government?Explain.

Usury Laws

Usury laws limit the amount of interest that can be charged on a loan. The idea is to protect borrowers from excessively high interest rates. However, by limiting the amount of interest that can be charged, some lenders may be unwilling to lend to those borrowers with limited credit histories or bad credit. Based on this, are usury laws are a good idea? Is this an appropriate role for the government?
My position is that there should be usury laws to protect the public.
1. Usury laws are generally controversial. Some say that it’s simply not a job for the government to intervene in private markets, including the market for loanable funds. Or they may argue that a price ceiling such as a usury law simply will cause a shortage of loanable funds with its accompanying inefficiencies.

2. “The rich rule over the poor, and the borrower is slave to the lender.”

APA format, minimum of 350 words with a biblical reference and a minimum of one citations.

Would the various values calculated for the MRTS be changed as a result of this technical progress, assuming now that the MRTS is measured along the q = 4000 isoquant?

ECO 300, Summer 2022
Problem Set #3
1. Suppose that the hourly output of chili at a barbecue (q, measured in pounds) is characterized by q = 20√KL where K is the number of large pots used each hour and L is the number of worker hours employed.
a. Graph the q = 2000 pounds per hour isoquant.
b. The point K = 100, L = 100 is one point on the q = 2000 isoquant. What value of K
corresponds to L = 101 on that isoquant? What is the approximate value for the MRTS at K = 100, L = 100?
c. The point K = 25, L = 400 also lies on the q = 2000 isoquant. If L = 401, what must K be for this input combination to lie on the q = 2000 isoquant? What is the approximate value of the MRTS at K = 25, L = 400?
d. For this production function, the MRTS is MRTS = K/L.
Compare the results from applying this formula to those you calculated in part b and part c. To convince yourself further, perform a similar calculation for the point K = 200, L = 50.
e. If technical progress shifted the production function to q = 40√KL all of the input combinations identified earlier can now produce q = 4000 pounds per hour.
Would the various values calculated for the MRTS be changed as a result of this technical progress, assuming now that the MRTS is measured along the q = 4000 isoquant?
2. Consider the production function f (L, K) = L + K. Suppose K is fixed at 2. For this function, the marginal product of labor, MP(L), is 1. (a) Find the algebraic expression for the average product of labor AP(L). (b) Graph the total product of labor function TP(L), the average product of labor AP(L), and the marginal product of labor MP(L). Does your answer to part b violate the rule describing the relationship between average and marginal values? Explain.
3. For each of the following production functions, determine if the technology exhibits increasing, decreasing, or constant returns to scale.
a. f (L, K) = 2L + K
b. f (L, K) = √L + √K
c. f (L, K) = L2 + K
d. f (L, K) = √LK + L + K

Analyze the relevance to real-life applications. Summarize your findings using at least 250 words and provide a minimum of one reference.

Locate a recent article or event that highlights your relevant microeconomics topic. Use the Hunt Library, newspapers, new stations, or other credible sources to discuss how your topic aligns with microeconomics. Include the following in your discussion:

State the article or event you selected.
Identify the microeconomic concept(s).
Describe your findings.
Analyze the relevance to real-life applications.
Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.

What has the economic growth rate looked like over the past 50 to 100 years? What are some of it’s major or important industries?

Choose a nation  so long as it is possible for you to gather the information you need about it and then write facts and analysis of it.

Questions:
Nation:
Population:
GDP:
GDP per capita:
Unemployment rate:
Inflation rate:
Official currency:

What has the economic growth rate looked like over the past 50 to 100 years?
What are some of it’s major or important industries?
What are some major businesses , if any?
What is your assessment of how democratic the nation is compared to other nations?
What is your assessment of how corrupt this nation’s government is or is not compared to other nations?
What is your assessment of how high the tax burden is on businesses and individuals in this nation?
What is your assessment of the degree of government involvement in the economy in this nation?
What is your assessment of the strengths and weaknesses of this nation’s economic system?
Share anything else you would like to say about this nation and its economy.

Calculate the future value of the total pension FRQWULEXWLRQVRQ-RKQQ\¶VUHWLUHPHQWdate assuming he makes his first contribution one year from now.

Answer 3 questions only from the 6 available.
Question 1
Part a)
Johnny England is considering when he should join his FRPSDQ\¶VHPSOR\HHSHQVLRQVFKHPH
Under the terms of the scheme, his employer will match -RKQQ\¶V contributions i.e. for every £1 that Johnny England pays into his pension, his employer will also contribute £1.
When he joins the scheme, Johnny will make a single annual payment of 5 per cent of his annual salary into the pension scheme. He will continue to do so every year until the day he retires. Johnny plans to retire in 30 years from today.
In making any calculations, assume that the pension has a guaranteed return of 6 per cent per year and that Johnny¶VDQQXDOVDODU\in one \HDUV¶WLPH will be £30,000 and will increase at 5 per cent per year thereafter.
Required:
i. Calculate the present value of the total pension contributions RQ-RKQQ\¶VUHWLUHPHQW date assuming he makes his first contribution one year from now. Explain your workings and any assumptions made.
ii. Calculate the future value of the total pension FRQWULEXWLRQVRQ-RKQQ\¶VUHWLUHPHQWdate assuming he makes his first contribution one year from now. Explain your workings and any assumptions made.
iii. Calculate the future value of the total pension FRQWULEXWLRQVRQ-RKQQ\¶VUHWLUHPHQW assuming he makes his first contribution five years from now. Explain your workings and any assumptions made.

iv. With reference to your answers above, outline the reasons why it is important for
Johnny to begin contributing to his pension plan as soon as he can.

Explain the mechanisms that underlie the relation between price level and output in aggregate supply. Illustrate the relation diagrammatically and then show and explain the impact of a reduction in the expected price level.

Answer ONLY ONE out of the two questions in this section
QUESTION 1 (a) Present a model of the labour market and use its equilibrium to derive an aggregate supply relation of the form y, = y * +8(p, where 0 < B <1, y, is the level of output, y * is the natural level of output, A is the price level — all measured in natural logs — while is the expectations operator.
(b) Explain the mechanisms that underlie the relation between price level and output in aggregate supply. Illustrate the relation diagrammatically and then show and explain the impact of a reduction in the expected price level.
(c) “Can a permanent/anticipated change in monetary policy affect output?” Provide an analysis that addresses this question, by combining the aggregate supply relation, with an aggregate demand relation of the form y, = m, — p,, where m, is the supply of money.