ECON 3502
ASSIGNMENT 3 - Answers
1. Suppose an economy has the following per worker production function
1
yt = 3k 2 .
The rate of depreciation is 0.15 and the population growth rate is 0.05. Savings is
1
St = Yt .
3
(a) Find the steady state values for th

ECON 3502
ASSIGNMENT 2
1. Find the rst derivative, with respect to x, for the following:
(a) f (x) = 5 2x
Answer:f (x) = 2
(b) f (x) = 2x + 10x2
Answer:f (x) = 2 + 20x
(c) f (x) = x3
Answer:f (x) = 3x4
2. Suppose an economy has real GDP of $14,000, govern

ECON 3502
ASSIGNMENT 1
Good X
Good Y
Amount
10,000
12,000
13,000
1980
1985
1990
Price
Amount
$2.00
$3.00
$3.50
1980
1985
1990
Price
1,000
2,000
3,000
$10.00
$11.00
$12.00
1. Use the information in the tables above to answer the following questions. You wi

OrangeInc
Wages
Taxes
Revenue
Oranges sold to Public
Oranges sold to JuiceInc
15,000
5,000
JuiceInc
Wages
Taxes
$10,000
$2,000
10,000
25,000
Oranges Purchased
Revenue
$25,000
$40,000
Approaches to calculation GDP
Income Approach
Wages
OrangeInc
15,000
Jui

Inventory Investment
In the following simple example I try to explain why and how negative entries are made for inventory
investment. It is important to remember that only final goods and services are counted in current
GDP, and for a specific period of t

MARGINAL ANALYSIS
Note: While the example below is different from what we are currently covering in class, the
general idea of making decisions at the margin is applicable.
By making a choice at the margin a firm is able to maximize its profits. Note that

ECN 324 - 003
Ch. 1
1. Capital surplus is when there is more GDP than the total consumption. Deficit on the other hand
is when there is less GDP than the total consumption.
2. Primary markets deals with issuing new securities. Secondary markets is where s