Macroeconomics Answers

7.    Given that a perfectly competitive firm incurs TC=200+Q2-40Q and market demand is equal to P=3000-10Qd and market supply is equal to P=1000+4Qs where Qd and Qs are quantity demand and quantity supply respectively .Then

A.   What is the profit maximizing level of output

B.   What is the equilibrium level of price

C.   What is the MR of the firm

D.   What is the maximum profit at equilibrium level

E.    Draw the graph showing the equilibrium level

F.    Is the firm at short run or long run? How do you know? 

A firm operates in a perfectly competitive market. The market price of its product is 4 birr and the total cost function is given by TC= Q3-15Q2+60Q +150, where TC is the total cost and Q is the level of output.

a) What level of output should the firm produce to maximize its profit?

b) Determine the level of profit at equilibrium.

c) What minimum price is required by the firm to stay in the market?

If government decides to reduce income tax due to economic turmoil arisen by covid 19. how it will affect the output and price level of the country

"The International Monetary Fund has put some conditions to address Monetary, Fiscal and Structural problems that faced the Egyptian economy."

Discuss the last sentence, addressing the main problems at the Egyptian economy, and Egypt Compliance with the conditions, under IMF extended Fund Facilities. 

There was a discovery of the new species of Homo Naledi in South Africa in the year 2017. This resulted in an increase in international tourists visiting South Africa.

1.1 Use a foreign exchange diagram to illustrate and explain the effect of this discovery on the rand–dollar exchange rate, ceteris paribus

How to calculate the value of deposits when given excess reserves and reserve ratio

Discuss the expected impact and outcome of the Structural adjustment programs (SAPs) provided by the International Monetary Fund (IMF) and the World Bank (WB) in Third World countries with special reference to Zambia.

Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking 

system. All figures are in billions of rands. The reserve ratio is 9%.

Table 2: Simplified Consolidated Banking System Balance Sheet

Assets Liabilities

Reserves 

Securities

Loans

R70.5

R219.5

R160

Deposits R450 

Based on the information above: The Money multiplier is_______. The value of excess reserves in the 

commercial banking system is ___ billion. If these excess reserves were loaned out, ceteris paribus, the 

total value of additional loans created would be___ billion. 

A. 11,11; R30; R 333

B. 0.09; R30,5; R160

C. 11,11; R30; R1778

D. 40.5; R30; R5,6