Alwyn Young, an economist at the London School of Economics, has a paper in which he studies the macroeconomic consequences of the horrible tragedy of AIDS in sub- Saharan Africa. Answer the following questions motivated by his research. Assume that the exponent on capital is 1/3 and the exponent on labor is 2/3. Required:
a. In the production function model we examined in class, we noted that the wage rate is equal to the marginal product of labor. Write the mathematical expression of this statement. That is, write the wage as a function of capital, labor, and the total factor productivity (TFP) parameter.
b. Young estimates that AIDS may eventually kill 25% of the population in some of the poorest countries of the world. Assuming TFP and the amount of capital are unchanged by the epidemic, by how much would the wage rate change as a consequence of AIDS.
c. Discuss your result. Why does the wage rate change? Why is the effect larger or small in magnitude than 25%? In what sense is there a "gift of the dying," to use Young's title?

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

borrow money from the government then pay the government back 5k