Assignment 1

1. List examples (one each) that can be considered as human capital and physical capital for Kuwait?

human capital
physical capital

2. Giving an example and explain â€œrenewable natural resourceâ€?

3. What do you mean by "foreign labor?" and is it important for Kuwait?

4. In 2017, the imaginary nation of Luckyland had a population of 7.2 million and real GDP of 65.4 billion. In 2018 it had a population of 7.5 million b500 and real GDP of 67.6. What was the growth rate of real GDP per person in Freedonia between 2017 and 2018?

5. How and why firms seek â€œRoyaltiesâ€?

6. Is it necessary to have a free education system? Explain your answer.

7. What is the problem of child labor?

8. The saving interest rate in Dubai is 4%, while in Kuwait it is 1.7%. Why such bigger difference exist between nations?

9. What do you mean by Increasing Return to Scale technology?

10. Why free trade is considered to be important for an economy?

Assignment 2

1. In a closed economy Y = $18 trillion, national saving = $5.5 trillion, consumption is equal to government expenditure. What is the government expenditure?

2. Skyline Chili wants to finance the purchase of new equipment for its restaurants. The firm has limited internal funds, list two options that are available for Skyline to seek the funding.

3. What do you mean by Kuwait government has a budget deficit for the year 2020?

4. Using a graph explain the impact of Kuwait government introducing a tax on interest/profit income. Explain what would happen to real interest rates and the equilibrium quantity of loanable funds?

5. Explain what would happen to standard of living in Kuwait as the Kuwait governmentâ€™s decision to not to undertake any mega projects?

6. Stocks and bonds represent financial markets. How do they differ?

7. Why some bonds pay higher interest rates while some other bonds pay lower interest rate?

8. If there is no change in Y, C, and G (remained the same), what is the impact of increase in taxes on the private and public saving?

9. For an economy, derive the equation where private + public saving = national savings

10. Why shares tend to pay higher dividend compare to bonds?

Assignment 1 1. List examples (one each) that can be considered...