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a) A firm’s demand function for good z is estimated as follows: Qz = 4500- 1/8 Pz+ 1/5 Pa – 1/9 Pb+ 2Y Where, Qz= Quantity of good z, Pz= the price of good z, Pa= the price of good a, Pb = the price of good b, Y = income i) Justify whether the law of demand is valid here. (5 marks) ii) Explain how goods a and b are related goods to good z. (5 marks) iii) Explain whether good z is a normal good?
how does export and imports can benefit like volkswagen in relation to resources
An economy has the following productive capacity, and its GDP is measured by these information: Government spending = 950, Investments = 1, 400, Exports = 900, Imports = 560, a = 800, b = 0.75. All values are in millions of naira.
Calculate:
a) The level of national income.
b) The multiplier.
c) Given the multiplier effect, what will be the new national income?
d) Give your economic interpretation.
Explain fully how a real depreciation affects output. (8 mark)
with the help of an IS-LM diagram show the effect of restrictive monetary policy on output under flexible exchange rates and with perfect capital mobility
Discuss the three common properties of preference relations and how they impact a person's choice. Use applicable examples based on your own individual experience
list and explain 2 reasons why the AD curve has a negative slope
C =0.5(1 - t)Y
t =0.20
I =800 - 30i
G =700
L=0.3Y - 60i
M/P =600
a) for this economy, use the relevant set of equations to derive and graph the IS-LM relations
(a) consider three consumers who care about the consumption of a private good and their consumption of a public good. their utility function are given by
Ui=XiG i = 1, 2, 3
where Xi is consumer i's consumption of the private good and G is the amount of the public good consumed by all. the unit cost of the private good is $1 and the unit cost of the public good is $10. individual wealth levels are w1=30, w2= 50 and w3 = 20.
(i) compute the marginal rate of substitution between G and X for each of the three consumers.
(ii) derive the samuelson condition for this model
(iii) derive the aggregate resource constraint and compute the optimal level of public good consumption.
(b) brief discuss the relevance of the samuelson condition in consideration to provide public goods in your country
The table below gives the CPI basket for 2012. Suppose that 2012 is the reference base period. (5
marks each)
Item Quantity
(2012)
Price
(2012)
Price
(2013)
Oranges 50 $0.90 $0.75
Bananas 100 $0.50 $0.95
Chicken 200 $2.00 $2.50
Beef 100 $5.00 $4.80
Bread 300 $1.75 $2.00
a) What is the cost of the CPI basket in 2012?
b) What is the cost of the CPI basket in 2013?
c) What is the CPI for 2012?
d) What is the CPI for 2013
