1. When labor is the only input to the production function, why must it be true that when
the marginal product of labor is greater than the average product of labor, the average
product of labor is increasing and vice versa?
Trade has been a practice that has been used since the beginning of time. Throughout
history as countries began to separate, countries exchanged their abundant resource for
a necessary resource for their survival that was scarce in their country. This sys
Bell Curve and Equations
Individuals who are high and low skilled are the individuals that tend to
migrate to destination countries by leaving their host country. The migration
patterns for a designated range of skills demonstrates that individuals that a
November 11, 2016
Illicit Markets Markets where it is hard or illegal to sell a product
- For example, you cannot own a tank
Supply is restricted because it is against the law to have it so possessing something
from the illicit markets is illegal as well
Specialization and Human Capital
Where do the gains from labor market specialization arise according to the author?
Incentives for specialization, trade, and the production of comparative advantage
through investment are shown to arise from increasing ret
Heterogenous Human Capital and Migration
What is heterogeneous human capital? Heterogeneous human capital means that
each individual is endowed with different levels of human capital.
What does the author mean by a U-shaped relationship between education
Declining Bee Population: Causes, Impacts, and Solutions
Importance of bees in the ecosystem
Bees play a larger role in the Ecosystem than we know. These insects are easily
overlooked for how vital their functions really are. Their pollination practice
Homework 4c (Principles Type Practice Questions on Cost and Production)
1. If MPK = 10, MPL = 20, PK = 2 and PL = 4 then in the long run the rm should
a. shut down
b. use more labor and less capital
0. use the same amount of labor and capital
(1. use less
1. Let the short run production function be given by q = LiKiand K = 16.
a. Express L as a function of q and nd %.
b. Differentiate q = LiKi, K = 16 to nd the MPL (= (11%) and use (a) to show %
c. Use 1a and PK = 5 and PL = 16 to complete the
2008 Financial Crisis Breakdown
The 2008 financial crisis was a contribution of a number of factors that
created a meltdown in many financial markets. The financial crisis has been
proclaimed to be one of the worst economic disasters since the Great Depre