Other Economics Answers

Argentina’s inflation accelerated at the fastest pace since President Fernandez took office in 2019, prompting government to tighten its unorthodox controls. Consumer prices rose 4.2%. Consumer prices in Argentina have stayed above 3%. The government has relied on unorthodox tools, rejecting traditional monetary options used by most countries. The recent spike, with the inflation rate running at about 40% annually, threatens to derail Argentina’s fragile economic recovery. The government ordered stricter enforcement of price controls and it would hire as many as 500 inspectors to ensure businesses are complying with regulations. Guzman asked for “more cooperation” by companies to try to reach the government’s 29% annual inflation target for the end of 2021. Economists say the rate accelerated to almost 42%. Attempting to decrease inflation may result in increasing levels of unemployment. Defend the above and explain the type of unemployment that this may result in. 

Argentina’s inflation accelerated at the fastest pace since President Fernandez took office in 2019, prompting government to tighten its unorthodox controls. Consumer prices rose 4.2%. Consumer prices in Argentina have stayed above 3%. Double-digit inflation has been a problem. The government has relied on unorthodox tools, rejecting traditional monetary options used by most countries. The recent spike, with the inflation rate running at about 40% annually, threatens to derail Argentina’s fragile economic recovery. The government ordered stricter enforcement of price controls and it would hire as many as 500 inspectors to ensure businesses are complying with regulations. Guzman asked for “more cooperation” by companies to try to reach the government’s 29% annual inflation target for the end of 2021. Economists say the rate accelerated to almost 42% in March. In light of the above article, discuss some of the negative effects of inflation that Argentina may experience. 

Explain the importance of marginal cost and average cost to managers.

Identify he following statements if it's TRUE or FALSE. Then explain why.

1. Most research in economics also use quantitative methods for this delas with the production, distribution, and consumption of goods and services, so much of the information covered in economics is numerical.

2. Quantitative methods are also used in environmental studies. It is useful for measuring and studying environmental issues such as the depletion rate of forest covers, the impacts of increasing greenhouse gases, the effects of dynamite fishing on environment, among others.

The Ministry of Education wants to know whether entrepreneurial education affects

students’ decision to start a business rather than seeking for employment.

(a) Construct a research question based on the scope.

(b) Develop a suitable economic model with at least three independent variables.

(c) Based on (b), define how you measure the variables and construct an econometric

model which contains an error term or disturbance.

(d) Give reasons as to why the random error exists.

(e) If data is non-parametric, what technique or test will you consider?

The Ministry of Industry and Trade wants to review the Youth Entrepreneurial Scheme (YES) implemented by the Ministry some five years ago. (a) Develop a research question to address the impact of the programme in the national income, export trade, local employment and GDP growth. (b) Outline your dependent variable (DV) and the independent variables (IV) from the research question. (c) Construct a simple economic model and econometric model and identify the parameters to be estimated

Black and Blue, Inc., overlooked $100,000 of inventory at the end of the current year because it was stored temporarily in a warehouse owned by another company. Before discovering this error, the company’s income statement showed the following:

Sales . . . . . . . . . . . . . . . . . . . . . . $990,000

Cost of goods sold . . . . . . . . . . (560,000)

Gross profit . . . . . . . . . . . . . . . $430,000

Required:

Restate these figures to reflect the inclusion of the overlooked inventory.