Answer to Question #154098 in Economics for Charith

Question

1)In an economy having the autonomous consumption or RS.400 and the marginal consumption 0.8. If the Disposable national income rises by RS.1200. How much does Consumption Expenditure rise by.

2) In an economy the Nominal interest rate is 9%

and real interest rate is 3%. What is the rate inflation.

3) How do you define economic resources.

4) What are the major functions of a entrepreneur

5) Distinguish between productive efficiency and allocative efficiency.

6) Explain the concept of opportunity cost and describe how it relates to the problem of choice alternate uses of scarce resources.

7) Outline the differences between command and market economies

8) What is meant by law of demand.

9) Indicate two situations where there is a positive relation between price and demand.

10)The demand and supply curves

QD=600-5p

QS= 10p

- calculate the equilibrium price and quantity

-after purchasing the excess amount find the consumer expenditure and producer revenue

-find the change of producer surplus

-change of excess production

-cost of government

11)What are the two laws related with the short run and long run production process.

12)Write the difference between short run average variable cost and long run average cost.

13) Explain nature of two different curves in perfect competition market and monopoly market.

14) Explain the situation of shutdown point in a perfect competitive market with the help of a diagram.

15)Citing four points differentiate between Monopolistic competition market and Monopoly market.

16)What are 3 reasons that motivate the people of a country to keep money in their hands.

17) Which factor determines the money supply of a country.

18) Following is a balance sheet of the commercial bank sheet of commercial banks in a banking system that follows the statutory reserve ration of 10%

Liabilities (per million RS.). Assets (per million RS

Deposits 2000. Reserve 2000

Loans 1750

(a)what is the amount of the new loans extended by this bank.

(b)show the bank sheet of the bank immediately after granting a new loan.

Examine the relationship between the objectives and roles of the bank.

Explain the concepts of inflation and deflation.

19) Explain the difference between money substitutes and near money.

What are the components that belong to the M4 money aggregate

What is meant by demand pull inflation, write 3 reasons for this.

What are the groups in an economy that suffer with inflation.

20) Write 5 main macro economic objectives

Draw and name a business cycle, briefly explain each stage.

What are the two main objectives of a bank.

Explain how an institution use standard deposit ratio and standard lending ratio to control the money supply.

Huge life saver if you can help with this.

Answer 1

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