An economy has an agricultural industry and a textile industry. Each unit of agricultural output requires 0.4 unit of agricultural input and 0.1 unit of textiles input. Each unit of textiles output requires 0.1 unit of agricultural input and 0.2 unit of textiles input. Write the technology matrix for this economy. If surpluses of 5 units of agricultural products and 195 units of textiles are desired, find the gross production of each industry.

Read the following passage to answer the question: Various countries, including South Africa, China and India, have established Special Economic Zones (SEZs) within their domestic economies. Firms that operate within these SEZS receive several incentives including tax relief, rent- free land, capital investment and training. This is done with the expectation to increase exports and to create job opportunities for local communities. Based on the passage, which one of the following statements regarding supply factors and demand factors that affect economic growth, is true? Select one: a. Tax relief, capital investment and training are not supply factors, nor demand factors. b. Creation of job opportunities for local communities will be positively influenced by demand factors. C. The fact that companies operating in SEZs do not have to pay rent, is a demand factor that will affect economic growth. d. Exports by firm's operating in SEZs form part of supply factors.

2. The circular-flow model 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. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when firms v purchase factors v in factor markets. Suppose Teresa earns $875 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Sam $350 per week to wait tables. Sam uses $200 to purchase legal service from Rowan and Martin Associates.

!

Taxes adversely affect the allocation of resources in society because... A) The taxes collected are not enough to finance government spending B) they distort prices and thus the decisions of households and firms C) they do not always fall more heavily on the rich D) not everyone pays taxes Can you tell me what the correct answer is and explain why it is correct? I have no idea how taxes have any affect on the allocation of resources. Just so you know, this is a microeconomic course.

Please solve b,c and d.

Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Teapots 100 I Price (Dollars per teapot) 90 20 Supply 80 Quantity Supplied (Teapots) Quantity Demanded 190 310 70 (Teapots) 60 50 40 Demand 30 20 10 50 100 150 200 250 300 350 400 450 500 QUANTITY (Teapots) The equilibrium price in this market is $ per teapot, and the equilibrium quantity is teapots bought and sold per month. Complete the following table by indicating at each price whether there is a shortage or surplus in the market, the amount of that shortage or surplus, and whether this places upward or downward pressure on prices. Price Shortage or Surplus Amount (Dollars per teapot) Shortage or Surplus (Teapots) Pressure 40 60 PRICE (Dollars per teapot)

A student who cashes a check at the student union in order to go shopping illustrates anexample of thea. Transaction demand for money.b. Speculative demand for money.c. Precautionary demand for money.d. Income effect.e. Substitution effect.

Question-3 Consider the figure below which shows the combined production function of Anna and Bob: Wheat (bushels) A Free-time (hours) [slope at A = slope at y] a) Assume a case where Anna works the land owned by Bob. By referring to the diagram above, explain how does Anna rank the possible allocations marked as X, Y, Z and A? b) Now assume a separate case whereby Anna is a slave to Bob. It is also given that Anna recently suffered from Corona virus and thus her nutrition needs are amplified- for more hours of work that she puts in, she requires more bushels of wheat, even just to survive. Draw a modified version of the diagram above to depict how Anna's biological survival constraint change in this case and also comment with brief reasoning whether Anna would be better off on her altered biological survival constraint compared to before? c) Suppose a new scenario where the Government has introduced a new social welfare program to cater to the poor of the society, wherein the…

6. b) There are two firms in the economy. Each firm employs positive amounts of capital and labour. The technology satisfies diminishing marginal rate of technical substitution of labour for capital. Currently, A's marginal rate of technical substitution of labour for capital is 4 while B's marginal rate of technical substitution of labour for capital is 2. Is the current production of the two firms efficient? If not, describe an exchange of inputs that would improve efficiency. Can these production levels of the two firms be observed in a perfectly competitive equilibrium of a production and exchange economy? Explain.