Other Economics Answers

3(a) An amount of Rs. 8,000 is distributed into three investments at the rate of 7%, 8% and 9% per annum respectively. The total annual income is Rs. 317.50 and the annual income from the first investment is Rs. 5 more than the income from the second. Find the amount of each investment using matrix algebra.

3(b) A wholesaler of pencils charges Rs. 24 per dozen on orders of 50 dozens or less. For orders in excess of 50 dozens, the price is reduced by 20 paise per dozen in excess of 50 dozens. Find the size of the order that maximizes his total revenue.

3(c) A computer is purchased for Rs. 50,000. It is estimated to depreciate at 10% per annum every year. Find its scrap value at the end of 12 years. 

Explain the difference between “the national efficient level” for one country and the “global

efficient level” for two countries (in bilateral agreements). Illustrate your answer by means of a graph.

If the net benefits of a particular environmental policy were judged to be regressively distributed among different income groups, would this be sufficient to oppose the policy?

Which one of the following statements best describes inflation? 

increase in the prices of goods and services [2] once-off and considerable increase in the general price level [3] a continuous and considerable increase in the price of electricity and petrol [4] a continuous and considerable increase in the general price level of goods and services 

W/t Kedija, the employee of CMN Agency, government owned, has worked 10 hours, 8 hours and 12 hours, during the holidays, after mid night on working days and weekends respectively in a given month. In the same month, she has earned a regular monthly salary of 1,120 BIRR as the result of working 140 regular working hours. Determine her gross overtime earnings for the month.

Explain the difference between" the national efficient level"for one country and the"global efficient level" for two countries (in bilateral agreements). Illustrate your answer by means of a graph

2) Suppose that consumers of a good can be represented by the demand function Q(P)=

50-P. The good is manufactured by an upstream monopolist with cost function C(Q)=

Q2 + 2Q + 10. A downstream monopolist resells the good to consumers (without further

production activity).

(a) Determine the industry outcome, profits and consumer surplus.

(b) Consider a vertical merger. Compare the industry outcome, profits and consumer

surplus to part (a).

(c) Suppose the upstream monopolist franchises the product to the downstream firm.

Which two-part tariff should the upstream monopolist choose? Determine the profits of the

firms.