Answer the following correctly plz..do all questions......

Human Capital: Our textbook points out that human capital is not included in the simple model of production but that it could be an important factor in explaining why the marginal product of capital differs among countries. 1. Consider a Cobb-Douglas production function with three inputs: Y = KiLiHi, (1) where K is capital, L is labor, and H is human capital. What is the marginal product of capital (MPK) implied by this production function? 2. Is MPK increasing in human capital or decreasing? 3. Use this model to explain why capital may flow from poor to rich countries. 4. Is the return to education higher or lower in countries with scarce capital?7. Ben's utility function over his income is given by u(y) = vy . He drives to work every day and spends a lot of money in parking meters. Unlike his sister, Ben has always been a bit devious and on many days the thought of cheating and not paying for parking crosses his mind. He knows, however, that there is a one-in-two chance of being caught on any given day if he cheats, and that the cost of a parking fine is $36. If his daily income is $100, then what is the maximum amount that he will be willing to pay for one day of parking?Question 3 (Measuring GDP and the Components - Chapter 2) Consider the following information of an economy. - Gross private domestic investment = 35 - Goverment purchases of goods and services = 25 - Gross national product (GNP ) = 340 - Current account balance = 30 - Taxes = 40 - Government transfer payments to the domestic private sector = 25 - Interest payments from the government to the domestic private sector = 15 (assume all goes to domestic households.) - Factor income received from rest of the world = 7 - Factor payments made to rest of the world = 9 - Assume that government investment is zero. Find each of the following, it may be useful to list out the formula you will use as you move along. 1) Net factor payments from abroad 2) GDP 3) Net exports 4) Consumption 5) Private saving 6) Government saving 7) National saving Question 4 ( GDP Accounting - Chapter 2) ABC Company builds computer components. It sells all its output to XYZ Company for $2.4 million. It costs ABC $0.9 million in wages, $0.1 million in interest on debt and $0.2 million on taxes. XYZ Company uses the components bought from ABC Company to build four supercomputers at $1 million each, this accounts from $0.6 million in components, $0.3 million in wages and $0.1 in taxes. Three of the supercomputers produced are sold to businesses at $1.8 million each. The only unsold is booked as a $1 million in inventory. 1) Using product approach, what is the total GDP contribution of these companies? 2) Using expenditure approach, what are the sold supercomputers counted as? What about the unsold? 3) Fill in the following table to calculate the GDP contribution of these companies. ABC Company XYZ Company Wages to the employees of Profits of Taxes paid by Interest paid by GDP contribution by Total GDP contribution Question 5 (Inflation - Chapter 2) 1) If the price index in year f and year f + 1 are 100 and 120, respectively, what is the inflation rate in year f? 2) If the price index in year 0 and year n are Po and Pa, respectively, the average annual rate of inflation can be written as (1 + )" = Pn/ Fo where + is the average annual inflation rate. Solve for the expression *.EXERCISE Question 1 (GDP Accounting - Chapter 2) ABC Company builds computer components. It sells all its output to XYZ Company for $2.4 million. It costs ABC $0.9 million in wages, $0.1 million in interest on debt and 50.2 million on taxes. XYZ Company uses the components bought from ABC Company to build four supercomputers at $1 million each, this accounts from $0.6 million in components, $0.3 million in wages and $0.1 in taxes. Three of the supercomputers produced are sold to businesses at $1.8 million each. The only unsold is booked as a $1 million in inventory. 1) Using product approach, what is the total GDP contribution of these companies? 2) Using expenditure approach, what are the sold supercomputers counted as? What about the unsold? 3) Fill in the following table to calculate the GDP contribution of these companies ABC Company XYZ Company Wages to the employees of Profits of Taxes paid by Interest paid by GDP contribution by Total GDP contribution Question 2 (Production Function - Chapter 3) Consider a production function Y = AK"-NO.. There is a decrease in total factor productivity by 10%. 1) Suppose we plot two production functions, one with constant level of capital, another with constant level of labor. In other words, two production functions with respect to capital and labor. How does this change in total factor productivity reflect on these production functions? Plot graphically. 2) Write down the marginal product of labor and marginal product of capital. 3) Holding the level of capital and labor constant, how does this change in total factor productivity reflect on marginal product of labor and marginal product of capital? Question 3 (Labor Demand and Labor Supply - Chapter 3) With the production function of Y = 104-NV, the marginal product of labor is MPN = 5105/N0.5. Suppose the labor supply curve is given by No = [(1 - t)w] where w and & are real wage and income tax rate, respectively. The capital stock is A = 25 and income tax rate is f = 0. 1) Write down the labor demand function. 2) Find the equilibrium real wage and equilibrium level of employment. 3) List the factors that will shift the labor demand and supply function in this model. Question 4 (Taxation, Labor Demand and Labor Supply) 1) Suppose that under a new law all businesses must pay a tax on their sales revenue. Assume however that this tax is not passed on to consumers; thus, consumers pay the same prices after the tax is imposed as they did before. Suppose the labor market is initially in its equilibrium, how does this taxation reflect on the labor demand-supply framework? 2) An imposition of lump-sum tax on workers has ( income / substitution / both income and substitution ) effect (s), which results in an ( increase / decrease / uncertain effect) in labor supply