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    A4

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    Sayed Atique Newaz
    This document provides instructions for Assignment #4 in ECO 101. It is due on November 6th, 2018 and is worth a total of 25 marks. The assignment contains multiple questions analyzing data on salaries, income taxes, costs and benefits of education, and utility from consuming different bundles of goods. Students are asked to calculate values like slope, marginal costs and benefits, and marginal utility. They also must draw corresponding graphs and determine optimal points based on the data and calculations. No late assignments will be accepted.

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    A4

    Uploaded by

    Sayed Atique Newaz
    41 views2 pages
    This document provides instructions for Assignment #4 in ECO 101. It is due on November 6th, 2018 and is worth a total of 25 marks. The assignment contains multiple questions analyzing data on salaries, income taxes, costs and benefits of education, and utility from consuming different bundles of goods. Students are asked to calculate values like slope, marginal costs and benefits, and marginal utility. They also must draw corresponding graphs and determine optimal points based on the data and calculations. No late assignments will be accepted.

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    This document provides instructions for Assignment #4 in ECO 101. It is due on November 6th, 2018 and is worth a total of 25 marks. The assignment contains multiple questions analyzing data on salaries, income taxes, costs and benefits of education, and utility from consuming different bundles of goods. Students are asked to calculate values like slope, marginal costs and benefits, and marginal utility. They also must draw corresponding graphs and determine optimal points based on the data and calculations. No late assignments will be accepted.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    41 views2 pages

    A4

    Uploaded by

    Sayed Atique Newaz
    This document provides instructions for Assignment #4 in ECO 101. It is due on November 6th, 2018 and is worth a total of 25 marks. The assignment contains multiple questions analyzing data on salaries, income taxes, costs and benefits of education, and utility from consuming different bundles of goods. Students are asked to calculate values like slope, marginal costs and benefits, and marginal utility. They also must draw corresponding graphs and determine optimal points based on the data and calculations. No late assignments will be accepted.

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    ECO 101

    ASSIGNMENT # 4
    Deadline: 6th November 2018 (in class)
    Total Marks: 25
    NO LATE ASSIGNMENTS WILL BE ACCEPTED

    1. The table illustrates annual salaries and income tax owed by five individuals. Despite receiving
    different and owing salaries and owe different amounts of income tax, these five individuals are
    otherwise identical.

    Name Monthly Salary (Taka) Monthly Income tax owed (Taka)


    Karim 3000 456
    Noman 20,000 3,000
    Anika 60,000 14,000
    Samdina 80,000 22,000

    A. Draw this on a graph, with monthly salary on x-axis and monthly income tax owed on y-axis. (4)
    B. Calculate the average slope of the curve between the points for Anika’s and Samdina’s salaries
    and taxes. Interpret this value for slope? (2)
    C. Calculate the average slope of the curve between the points for Karim’s and Noman’s salaries
    and taxes using the arc method? Interpret that value for slope? (2)
    D. From your interpretation in b) and c), what can you infer about the tax rate? (2)

    1. The table below show’s Moin’s cost and benefit from post-graduation studies.

    Years of Post-
    Graduation Studies Total cost (Tk) Total Benefit (Tk)
    0 0 0
    1 50,000 100,000
    2 110,000 180,000
    3 180,000 250,000
    4 265,000 290,000

    A. Calculate marginal cost and marginal benefit for each additional years of schooling. (2)
    B. What is the optimum number of years of post-graduation studies to Moin? (1)
    C. Show the marginal cost, marginal benefit and the optimum point in a diagram. (2)
    2. Nora needs to buy both pen and candies. Her utility from different consumption bundle is given
    below.
    Price: 4 taka per pen Price: 2 taka per candy
    Total MU per Total MU per
    Pen MU Candy MU
    Utility taka Utility taka
    0 0 0 0 0 0 0 0
    1 32 1 24
    2 60 2 42
    3 84 3 54
    4 104 4 60
    5 120 5 62

    A. Calculate Nora’s marginal utility and marginal utility per taka for each bundle. (4)
    B. State is the optimal consumption bundle? (2)
    C. Draw the MU per taka for pen and candies in the same diagram, and show the optimal
    consumption bundle. (4)

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