Other Economics Answers

What is the role of the financial intermediation in economic development?

 “Many believe that the main objective of government economic policy should be to increase productivity and economic growth.”

Using the data above and your economic knowledge, critically evaluate this statement by providing THREE reasons for and THREE reasons against. Ensure that you provide a relevant real-world example from the given Caribbean economy to support EACH point. (24 marks

Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $65,000 and her store made $130,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $35,000 plus 16% of the store’s profits. Since the change, the store is performing much better, and she forecasts profits this year to be $270,000 (again, not counting the payment to her top manager). 

Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, how much more money will the owner make (net of payment to her top manager) because of this change?

$ 

Does the manager make more money under the new payment scheme?

2: With hundreds of millions of people still living in extreme poverty, what are the causes and what policies have been most effective for improving the lives of the poorest of the poor?

Let X1, X2, . . . , X100 be a random sample from a population with population mean equal to 100 and population variance equal to 225. Compute the (approx- imate) probability that X¯ 100 is not in the interval [99, 101]. Which theoretical result underlies your calculation? 

Consider an experiment where a fair six-sided dice is tossed one time. Let Y be the random variable which equals 0 if the dice is three or less, and 1 otherwise. Calculate the expectation and variance of Y .

Suppose we have pairs of numbers (x1, y1) = (1, 1),(x2, y2) = (2, 2) from the variables x and y. Compute the correlation for this pair of numbers. Explain why your conclusion makes sense.

Suppose we have numbers x1 = 1, x2 = 1, x3 = 1. Compute the standard deviation of these numbers, and explain why your conclusion makes sense

Many believe that the main objective of government economic policy should be to increase productivity and economic growth.”

Using the data above and your economic knowledge, critically evaluate this statement by providing THREE reasons for and THREE reasons against. Ensure that you provide a relevant real-world example from the given Caribbean economy to support EACH point.

 What has been the impact of international financial organisations including programmes of the IMF and the World Bank Group on the growth and stability prospects of low- and middle-income countries?