Economics of Enterprise Answers

Suppose the following demand and supply function:

Q^d = 750 – 25P

Q^s = -300 + 20 P

      i.         Find equilibrium price and quantity

    ii.         Find consumer and producer surplus

On your first day of school discuss the classroom rules with your learners. Prepare poster on an A4 about classroom rules based on the discussion and agreement with your class. (Provide ten classroom rules) 

A consumer spends all her income on food and clothing. At the current prices of price of food = Rs. 10 and price of cloth = Rs. 5, she maximizes her utility by purchasing 20 units of food and 50 units of clothing.(Hint: Take food on x-axis and cloth on y-axis)

i)                   What is the consumer’s income?

ii)                 What is the consumer ‘s marginal rate of substitution of food for clothing at the equilibrium

3.1Explain the difference between demand-pull and cost-push inflation,and discuss two ways in which inflation can be managed. (10)

3.2Describe how the South African government could use discretionary fiscal policy to stimulate the economy. Be sure to advise the government on possible pitfalls of using this type of fiscal policy.(10)

The Indian government uses direct and indirect taxation.

Which is a direct tax?

Given the Production Function Q = 72X + 15X2 - X3, where Q =Output and X=Input

a) What is the Marginal Product (MP) when X = 8?

b) What is the Average Product (AP) when X = 6?

c) At what value of X will Q be at its maximum?

d) At what value of X will Diminishing Returns set in?

And, a would be entrepreneur,has identify an opportunity to open a sport bar in his town.Andy should conduct a .. in order to determine whether or not this business opportunity can be turned into successful business venture.

Does identification state have any implication on the estimation of the econometric parameters? How?

The market value of goods and services produced in a economy in a given year is____

Select one:

a. Per Capita Income

b. Gross Domestic Product

c. National income

d. Net national income

In the product market of the circular flow model,

Select one:

a. Consumers buy factors of production from firms.

b. Firms buy finished products from households.

c. Consumers buy finished products from firms.

d. Firms sell factors of production to the government.