Microeconomics Answers

Use the following information to answer questions 1.2 to 1.4:

Suppose the demand for a product can be represented by Qd = 100 – 5P, while

the supply is given by the equation Qs = –12 + 3P, where price is in rand. Determine the equilibrium price and quantity

Q1.Using the indifference curve approach, with movies on the vertical axis and concerts on the horizontal axis, illustrate a situation where the law of demand is violated. i.e decreases in the price of movies lead to decreases in the quantity demanded of movies.

Q2.With the quantity of popcorn on the vertical axis and ice cream on the horizontal axis, draw indifference maps to illustrate each of the following situations:

I.Leoni's marginal rate of substitution between ice cream and popcorn remains constant, no matter how much ice cream she consumes

II.Heather loves ice cream but hates popcorn

III. When Andy eats ice cream, he tends to get addicted: I.e. the more he has, the more he wants and he is willing to give up more and more popcorn to get the same amount of additional ice cream.

Consider the following equation:Qd=100-3p and Qs=0.5-100

The objectives of virtually all tax systems can be classified into two broad categories namely Revenue and Non-Revenue goals.

Some of the non-revenue goals incorporated in our current tax regime include Stabilization Function, Economic Growth Function, Redistribution of Income Function, and Allocation Function.

Critically assess the contribution of the above policies in safeguarding the micro and macro-economic objectives of a nation.

Explain the classical and Keynesian point of view regarding trading more inflation for less unemployment Philip curve ( short run and long run)

The ultimate goal of Accounting Information System is to use relational database technologies to record and store data by digitizing business transactions and business policies. Based on the give-to-get economic duality, the REA theory demonstrates that Resource, Event, and Agent can conceptualize all business processes and policies. The cardinalities of ER (entity-relationship) guides how to develop the relationship between two tables. the approach to developing an REA diagram for each business cycle and integrating REA diagrams across cycles. 

The differences between merging redundant resources and merging redundant events in the integration. 3 sentences to explain the differences?

Can we directly link two entities (tables) if they have a Many-to-many relationship? If not, how to solve this issue?

Does the AIS database directly store Accounts Payable data? If not, how can we acquire this information for the financial report?

1. Why would a firm that incurs losses choose to produce rather than shut down?

2. Explain why the industry supply curve is not the long-run industry marginal cost curve.

3. In long-run equilibrium, all firms in the industry earn zero economic profit. Why is this true?

4. What is the difference between economic profit and producer surplus?

5. Why do firms enter an industry when they know that in the long run economic profit will be zero?

Use the production function Q=10K0.5 L0. 6 to complete the following production table.

Rate of capital input (K)

6 24.5. 56.3. 71.8

5

4. 30.3

3. 45.5

2. 27.3

1. 10.0. 29.3

1. 2. 3. 4. 5. 6

a) For this production system, are returns to scale decreasing, constant, or increasing? Explain

A firm operates in a perfectly competitive market. The market price of its product is 4 br and the total cost function is given by TC = 200Q + 50, where TC is total cost and Q is level of output

What level of output should the firm produce to maximize the profit

Examine the major types of unemployment and the need for such categorization???