Unemployment generally refers to a state/situation where factors of production (resources) are
readily available and capable of being utilized at the ruling market returns/rewards but they are either
underemployed or completely unengaged.
When referring to labor, unemployment is considered to be a situation where there are people ready,
willing and able to work at the going market wage rate but they cannot get jobs. This definition
focuses only on those who are involuntarily not employed.
Wilfykil answered the question on February 6, 2019 at 11:45
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Explain the concept of liquidity trap
(Solved)
Explain the concept of liquidity trap
Date posted:
February 6, 2019
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Answers (1)
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How do commercial banks "create credit?? What are the limitations to this credit creation?
(Solved)
How do commercial banks "create credit‟? What are the limitations to this credit creation?
Date posted:
February 6, 2019
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Answers (1)
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A central bank is largely referred by economists as the bank at the apex with monetary authority.
Clearly explain the major functions of a central bank.
(Solved)
A central bank is largely referred by economists as the bank at the apex with monetary authority.
Clearly explain the major functions of a central bank.
Date posted:
February 6, 2019
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Answers (1)
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You are given the following information about the commodity and Money markets of a closed economy
without government intervention.
The commodity market
Consumption function:
C = 50 + 2/5Y
Investment...
(Solved)
You are given the following information about the commodity and Money markets of a closed economy
without government intervention.
The commodity market
Consumption function:
C = 50 + 2/5Y
Investment function:
I = 790 – 21r
The Money Market
Precautionary and Transactions demand for
money MDT = 1/6 Y
Speculative demand for money
MDS = 1200 -18r
Money supply
MS = 1250
Determine the equilibrium levels of income and interest rate for this economy
Date posted:
February 6, 2019
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Answers (1)
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What are the likely effects of an expansionary monetary policy in an economy?
(Solved)
What are the likely effects of an expansionary monetary policy in an economy?
Date posted:
February 6, 2019
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Answers (1)
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Explain the various motives of holding money.
(Solved)
Explain the various motives of holding money.
Date posted:
February 6, 2019
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Answers (1)
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Define Money and outline its major functions.
(Solved)
Define Money and outline its major functions.
Date posted:
February 6, 2019
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Answers (1)
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Briefly explain the multiplier and accelerator principles
(Solved)
Briefly explain the multiplier and accelerator principles
Date posted:
February 6, 2019
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Answers (1)
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The table below represents economic transactions for country XYZ in billions of shillings:
Calculate the Gross...
(Solved)
Calculate the Gross National Product of this economy using the value added approach.
Date posted:
February 6, 2019
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Answers (1)
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Why is it important to estimate National Income of a Country? What difficulties do economists
encounter while carrying out such a task particularly in developing countries?
(Solved)
Why is it important to estimate National Income of a Country? What difficulties do economists
encounter while carrying out such a task particularly in developing countries?
Date posted:
February 6, 2019
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Answers (1)
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Assume the following information represents the National Income Model of an "Utopian" economy.Y = C + I + GC = a + b(Y – T)T...
(Solved)
Assume the following information represents the National Income Model of an „Utopian? economy.
Y = C + I + G
C = a + b(Y – T)
T = d + tY
I = IO
G = GO
Where a > O; O < b < 1
d > O; O < t < 1
T = Taxes
I = Investment
G = Government Expenditure
Find the equilibrium values of income, consumption and taxes.
Date posted:
February 6, 2019
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Answers (1)
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Assume the following information represents the National Income Model of an "Utopian" economy.Y = C + I + GC = a + b(Y – T)T...
(Solved)
Assume the following information represents the National Income Model of an „Utopian? economy.
Y = C + I + G
C = a + b(Y – T)
T = d + tY
I = IO
G = GO
Where a > O; O < b < 1
d > O; O < t < 1
T = Taxes
I = Investment
G = Government Expenditure
Explain the economic interpretation of the parameters a,b,d and t.
Date posted:
February 6, 2019
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Answers (1)
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The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q – 15Q2 + Q3
Where C = Cost...
(Solved)
The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q – 15Q2 + Q3
Where C = Cost measured in shillings, while Q = quantity measured in kilograms
What is the Marginal cost of the 12th Kilogram?
Date posted:
February 6, 2019
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Answers (1)
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The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q – 15Q2 + Q3
Where C = Cost...
(Solved)
The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q – 15Q2 + Q3
Where C = Cost measured in shillings, while Q = quantity measured in kilograms.
Compute the total and average costs at output level of 10 and 11 kilograms.
Date posted:
February 6, 2019
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Answers (1)
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Discuss some of the economic implications of a rising trend in the rural-urban migration and offer
policy recommendations to reverse it.
(Solved)
Discuss some of the economic implications of a rising trend in the rural-urban migration and offer
policy recommendations to reverse it.
Date posted:
February 6, 2019
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Answers (1)
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Briefly explain and illustrate quasi-rent.
(Solved)
Briefly explain and illustrate quasi-rent.
Date posted:
February 6, 2019
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Answers (1)
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Using well labelled diagrams, illustrate cases when the total factor payments may equal to economic rent,
or transfer earnings or shared between the two.
(Solved)
Using well labelled diagrams, illustrate cases when the total factor payments may equal to economic rent,
or transfer earnings or shared between the two.
Date posted:
February 6, 2019
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Answers (1)
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Explain what is meant by the terms transfer earnings and economic rent of a factor of production
(Solved)
Explain what is meant by the terms transfer earnings and economic rent of a factor of production
Date posted:
February 6, 2019
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Answers (1)
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A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 +...
(Solved)
A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 + 4Q and the total fixed cost is 4.
Determine the output level at the break-even point.
Date posted:
February 6, 2019
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Answers (1)
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A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 +...
(Solved)
A monopoly firm is faced with the following demand function
P = 13 – 0.5Q
The Marginal Cost function for the firm is given by 3 + 4Q and the total fixed cost is 4.
Determine the level of super-normal profit if any.
Date posted:
February 6, 2019
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Answers (1)