Consider a country that produces two goods cloth (C) and food (F) with two factors of production: land (T) and labor (L). The technology for cloth and food are as follows.

Qc= Min {1/20 L,T}, Qf= Min {1/5 L,T}, where Qc denotes the amount of cloth produced and Qf denotes the amount of food produced. Denote the wage by w and the rent of land by r.

A).Suppose that the economy’s total resources are 600 hours of labor and 60 units of land. Determine the allocation of labor and land between the two goods algebraically and then show it diagrammatically.

B).Now suppose that the labor supply increases first to 800, then 1000, then 1200 hours. In each case, determine the allocation of labor and land between the two goods algebraically and then show them diagrammatically. Verify the Rybczynski’s theorem.

Explain what a cash-flow calendar accomplishes. Name three techniques to control spending.

Explain why governments choose to pay for spending by printing money and how this relates to hyperinflation

How is the US economy affected by healthcare spending? Provide at least five contributing factors.

Identify the major differneces between federal government outlays and spending by state and local governments.

Where could we cut or add finances for our national healthcare spending, and why?

What's the impact of the foreign trade factor ingesting when it joins the revenue-spending model ?

Show graphically how an increase in US government spending affects the US trade deficit.

Government spending unnecessarily affects us all as taxpayers. Do you agree? why?

How will investment spending be effected when greater level of taxes are placed on business earnings?