Scarcity is the mother of all economic problems. Elaborate

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Scarcity is the mother of all economic problems. Elaborate

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A firm's unit capital and labor costs are $1 and $2 respectively. If the production function is given by Q = 4LK + L^2. Find the maximum output and the level of K and L at which it is achieved when the total in put cost is fixed at $105. Verify that the ratio of marginal product to price is the same for both inputs at the optimum
In comparing of the living standard of people among different countries, why GDP is not a proper estimate? Logically write about this problem.
If the long-run Phillips curve shifts to the right, for any given rate of money growth and inflation the economy will have a. higher unemployment and higher output. b. higher unemployment and lower output. c. lower unemployment and higher output. d. lower unemployment and lower output.
What is comparative theory of international trade explain.
Suppose 90-day investments in Europe have a 5% annualized return. In the United States, 90-day investments of similar risk have a 7% annualized return. In today’s 90-day forward market, €1 equals $1.32. If interest rate parity holds, what is the spot exchange rate ($/€)?
THE FOLLOWING TABLE SHOWS THE TOTAL UTILITY GAINED FROM THE CONSUMPTION OFFANTA LEMON IN A WEEK.LEFT IS QUANTITY AND RIGHT IS TOTAL UTILITY1-202-353-454-535-586-587-48 1. CALCULATE THE MARGINAL UTILITY. WHAT DO YOU OBSERVE?2. SKETCH THE TOTAL UTILITY AND MARGINAL UTILITY CURVES.3. IF THE PRICE OF FANTA LEMON INCREASES FROM RS.8 TO RS.10, HOW WILL ITAFFECT ITS CONSUMPTION?EXPLAIN YOUR ANSWER USING THE DATA ABOVE.
An individual is confronted with three commodities x, y and z. Suppose the consumer’s money income is Birr 39 and the marginal utility of each good is independent of the amount consumed of other goods. Using the hypothetical data given below, find the optimum quantities of a consumer. Unit of each good 1 2 3 4 5 6 7 8 9 10 Mux 12 11 10 9 8 7 3 0 -2 -6 MUy 60 55 48 40 27 21 19 18 9 0 MUz 70 60 50 45 30 25 18 10 0 -5 a) If the three goods were “free” or no budget constraint. b) If respective prices are Px= 1 Birr, Py=3 Birr and Pz=5 Birr
In order to maximize surplus in a market, which of the following must be true? All costs and benefits to society are internalized. All goods are common resources. Quantity supplied is greater than quantity demanded. Marginal private benefit equals marginal private cost.