Search & Filtering
Vigayo -0......Maize(1000's Gallons/year) - 600
Vigayo -1..... Maize(1000's Gallons/year) - 500
Vigayo - 2..... Maize(1000's Gallons/year) - 300
Vigayo - 3..... Maize(1000's Gallons/year) - 0
a) Graph the production possibility frontier of the Syejumba Economy
b) What is the direction of the slope of the production possibility frontier of the Syejumba Economy? Explain the intuition behind that fact.
c) What is the shape of the production possibility frontier of the Syejumba Economy? Explain the intuition behind that fact.
d) Suppose the Syejumba Economy is currently producing 2,000 Vigayo and 30,000 gallons of Maize. What is the opportunity cost of producing additional 20,000 gallons of Maize?
a) An abrupt heat wave smashes the city of Lusaka. Show the effect in the ice cream market in Lusaka.
b) Authorities impose a tax on ice cream to be paid by producers. How does this affect ice cream market?
c) We are told that Kenya and Madagascar are major producers of cotton. Madagascar workers decide to go on strike. Show the effect on the market for Madagascar cotton.
d) Illustrate the effect of the situation described in part c) on the market for Kenya cotton.
e) In the command economy, the authorities impose a price cap on canned Fanta. Show the effect in the canned Fanta market
1) Write short notes on the following theories of consumption.
I) Absolute income hypothesis
II) Relative income hypothesis
III) life cycle hypothesis
IV) permanent income hypothesis
V) Rational expectation and consumption
2. Write short notes on the following theories of investment
I) Net present value approach
II) Marginal productivity of capital
III) Marginal efficiency of capital
IV) Rigid accelerator theory and flexible accelerator theory
V) Tobin's Q-theory
3) Discuss five factors that influence investment.
4) Apart from income what are the other determinants of consumption?
The following data for a hypothetical country in millions of dollars for the year 2020. Depreciation =200, Exports =150, public transfer =200, Gross domestic private investment =300, corporate income tax =100, factor receipts from abroad =400, gevenment expenditure on goods and services =250, interest income =800, compensation of employees =2600, net interest on government debit =50, indirect business taxes =100, factor payments to abroad =200, imports =200, proprietors incom(profits) =700, retained corporate profit =200, personal consumption expenditure =4500, personal taxes =100, social security contribution =50, rental income =600. A. Calculate the gross domestic product of the country I. Using the expenditure approach II. Using the income approach B, Calculate the gross nationalproduct of the country. E, calculate the rate the inflation rate of the economy if the consumers price index for 2019 is 100. F, find personal disposable income.
