Economics of Enterprise Answers

Explain the internal and external effects of these downswings in our trading partner’s economies on real interest rates (r), income (Y) and the balance of payments in the South African economy

The owner invest R870 000 in the business
Bought equipment for R26 000 cash
Borrowed R50 000 from the bank
Bought stock for R44 000 cash
Paid R10 000 of the loan

what is the accounting equation

A production possibilities curve is an example of what?

Accounting measures the deficit as the difference between current spending and current revenues, while _____ accounting takes into account the change in the value of the government's net asset holdings.

Use the Hill Method for each of the following questions:
1. A new toy store opens. What happens to the price and quantity of toys?
2. A new machine is invented to produce toys faster. What happens to the price and Quantity of toys?
3. A new toy store opens and at the same time people start preferring toys to candy. What happens to the price and quantity of toys?

Assume you will receive $2,500 a year in Years 1 through 5, $6,000 a year in years 6 through 8, and $8,000 in year 9 with all cash flows to be received at the end of the year. If you require a return of 12 percent annually, what is the present value of these cash flows?

Play-2-Win is the latest lottery game in your country, and you happen to be the latest winner of $10.5 million. Your government has a guarantee on the funds and will not be paid before 3 years from today. You can however sell your claim today at a rate of 8 percent for a lump sum cash payment. What is the least amount you will sell your claim?

MJI Corporation bonds mature in 6 years and have a yield to maturity of 8.5 percent. The par value of the bonds is $1,000. The bonds have a 10 percent coupon rate and pay interest on a semiannual basis. Assuming there are no changes to interest rates during the course of the year, what are the current yield and capital gains yield on the bonds for this year?

A trendy restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restaurant has received rave reviews and has lines of diners waiting for tables most nights.

In the short run (next few months), what measures should the restaurant take to maximize its profit? Explain.

In the long run (next six months and beyond), how can it maximize its profit? (Assume that the impressive state of demand is permanent.

Given daily the number of fishermen to daily output in tuna caught:

1 to 50
2 to 110
3 to 300
4 to 450
5 to 590
6 to 665
7 to 700
8 to 725
9 to 710

Determine the point of diminishing returns.