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2. Latisha works for a car dealership in town . She saves $ 500 from the $ 2600 she earns every two weeks . Yesterday she used part of her savings to make a $ 4000 down payment on a new car . Draw and label a simple circular - flow model . Place both the transactions described on your model , and describe the flow between households and firms that results .
The correct answer is: (a, b, c or d) ________________
a) A decline in the price of cattle feed
Insert graph here
b) A rise in the price of pork
Insert graph here
c) A decline in the price of hamburger
Insert graph here
d) A decrease in income
Insert graph here
State why each question is wrong and each graph
The correct answer is: (a, b, c or d) ________________
a) A decline in the price of cattle feed
Insert graph here
b) A rise in the price of pork
Insert graph here
c) A decline in the price of hamburger
Insert graph here
d) A decrease in income
Insert graph here
1.2. Discuss the evolution of the payment system
Using South African practical examples, explain the functions of money and clearly distinguish
between the M1, M2 and M3 aggregate measures for money supply
As a group/individual choose a familiar product. Explore the demand for your product.
3 What is your product? (2)
________________________________________
Draw graphs of your product for each scenario accompanied by an explanation:
a) A substitute for your product
Insert graph here
b) A complement for your product
Insert graph here
c) An inferior good in comparison to your product
Insert graph here
d) A change in price for your product (8)
Insert graph here
The correct answer is: (a, b, c or d) ________________
a) A decline in the price of cattle feed
Insert graph here
b) A rise in the price of pork
Insert graph here
c) A decline in the price of hamburger
Insert graph here
d) A decrease in income
Insert graph here
Mary is having a yard sale and is willing to sell a painting if she gets at least $2, buts she has not marked a price on it. John is at her sale and willing to pay up to $100 for this painting. What can economic theory tell us about the price that will result? Choose the ONE most correct answer and provide a reason for your answer. (2)
A. It will be $51, half way between the values that Mary and John place on the painting.
B. There will be no sale because these two values are too far apart.
C. If there is a sale, the price will be somewhere between $2 and $100.
D. Nothing; economic theory can only explain markets with many buyers and many sellers
You are thinking about investing in stock in a company that paid a dividend of $10 this year and whose dividends you expect will grow at 4 percent a year. The risk-free rate is 3 percent and you require a risk premium of 5 percent. If the price of the stock in the market is $200 a share, should you buy it?
Black and Blue, Inc., overlooked $100,000 of inventory at the end of the current year because it was stored temporarily in a warehouse owned by another company. Before discovering this error, the company’s income statement showed the following:
Sales . . . . . . . . . . . . . . . . . . . . . . $990,000
Cost of goods sold . . . . . . . . . . (560,000)
Gross profit . . . . . . . . . . . . . . . $430,000
Required:
Restate these figures to reflect the inclusion of the overlooked inventory.
#340153 on Dec 2023