Answer:
(a) What do you mean by production function? Distinguish between a short
period and a long period production function.
A production function is simply a function that describes the relation between input and output, input is the raw materiales or the intermediate goods that are used in the production process, and output is the finished goods.
A short period production function fixes all the variables except for one, while a long period production function allows for changes in all the variables.
(b) Explain the basis of increasing returns to scale.
Increasing returns to scale occurs when output increases more in proportion to input. That is to say, when the production process reaches a point in which for the same amount of input, more finished goods are produced.
(c) Why has welfare Economics accepted perfect competition as a desirable ideal?
Because perfect competition allows for minimum prices and maximum production, due to the internal structure and functioning of the system. While all other market structures lead to less than optimal outcomes due to excessive market power either from buyers or sellers, in perfect competition market power does not exist, and as a result, the market mechanism is allowed to function properly leading to the best possible outcome.
Answer:
The correct answer is "option B".
Improving a widely used job-search website so that it matches workers to job vacancies more effectively
Explanation:
The demand for labor among cotton-producing Texas will firms in Texas will <u>increase.</u> This will happen because of the increase in world price leads to increment in wages.
The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will <u>decrease</u>. This is because cotton is an input. The increase in price of cotton increases the cost which reduces the profits which leads to less hiring of workers.
The temporary unemployment resulting from such sectoral shifts in the economy is best described as <u>frictional</u> unemployment.
Government measures to reduce frictional unemployment is:
<em>Improving a widely used job-search website so that it matches workers to job vacancies more effectively</em>
The option C is not correct, because, another measure that the government uses is to withdraw benefits to short-term unemployed. There would be a greater incentive for workers to find work quickly.
Answer:
New Keynesian economists critique rational expectations by arguing that short-term wage stickiness is brought about by
b. imperfect information and efficiency wages.
Explanation:
The assumption in macroeconomic theories is that economic agents, households, and companies exercise rational expectations. The New Keynesian economics posits that rational expectations have become distorted as a result of market failure, arising from asymmetric information and imperfect competition, thus questioning the ability of markets to self-regulate and self-correct.
Answer:
C. The fewer the Risk Factors for a Disease the better the Chances of a Good Health
Explanation:
Understanding Risk factors in health is very important especially when trying to find ways to ensure good health. Risk factors are important in many important health decisions. For instance, it is important to know family and personal risks, risks and benefits of a treatement and even the risk factors for a disease. All these assist in making better decisions both by the individual and the medical practitoner
A disease's risk factor represent those situations, living conditions, habits, choices etc that can heighten the probability of getting a certain disease. A disease's risk factor represents those things or factors that tend to increase the chances of contracting such a disease, while it doesn't necessarily mean they will definitely occur, the higher these factors, then the higher the possiblity of contracting it and the lower the risk factors then the lower the possibility of contracting the disease.
For instance, it is known that smoking cigarette is a risk factor especially for lung cancer, however, family history, exposure to second hand smoke as well as radon gas are also factors that can contribute to lung cancer. These repesent the risk factors.
Risk factors are divided into five:
- Physiological
- Behavioural
- Demographic
- Environmental
- Genetic.