Economics Answers

Zodwa P=50-2Q Lihle P=60-3Q

Deduce the market quantity identity for ice cream

The production function for Ghana Rice is given by Q = 100 KL , where Q is the number of bags produced per hour K is the units of capital employed and

L is the number of workers hired each hour.

a. Calculate the Q = 1000 isoquant for this production function and illustrate it on

a diagram.

b. If K = 10 , how many workers are required to produce Q = 1000 ? What is

average productivity of Ghana Rice workers?

c. Suppose technical progress the production function to Q = 200 KL , answer

parts (a) and (b) for this new situation.

2. Assume the government has two policy options, a cash grant of GH¢200 and providing food stamps worth GH¢200.

(a) Draw the budget constraint faced by the consumer in each of these two situations.

(b) Now, draw a set of indifference curves that corresponds to an individual who would be indifferent between these two policies.

(c) Next, draw a set of indifference curves corresponding to an individual who would prefer to have a cash grant rather than food stamps.

Briefly explain macroeconomic problem and macroeconomic polic instruments

On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2021. Expenditures on the project were as follows ($ in millions):

July 1, 2020

54

October 1, 2020

22

February 1, 2021

30

April 1, 2021

21

September 1, 2021

20

October 1, 2021

6

On July 1, 2020, Crocus obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31.

What is the amount of interest that Crocus should capitalize in 2020, using the specific interest method?

A) $1.90 million.

B) $1.95 million.

C) $2.96 million.

D) None of these answer choices are correct.

Review (closed economy)

C=C0 +0*8 yd

I=150-10i

G=250

T=200

Ms=100

Md=40+0.ıy -10i

A) Write the equation for IS

B)Write the equation for LM

C) Find the equilibrium valuer for income, Y, and interest rate, İ, (IS/LM)

D)Suppose that, investment is completely interest inelastic , Write new IS-LM equations?

E) Find new equilibrium values for income and interest rates

F) Draw IS-LM diagrams

What are the supply schedule and the supply curve and how are they related ? Why does the

supply curve slopes upward ?

Q 1(a). What are the supply schedule and the supply curve and how are they related ? Why does the

supply curve slopes upward

Thomas Private Limited Company is about to start production of new products to

sell to customers. Before the start of the new production, it costs the company $

200,000 to construct the factory’s building. Once the construction is over, the cost

per unit of production is estimated to be birr 20. Upon selling, the company will

incur a 20% commission expense. Moreover, the price per unit of products is

decided to be Birr 50.

Required:

a)

Construct the total cost equation in terms of quantity.

b)

Determine the break-even quantity (Revenue)

The difference in returns between Treasury bills and the FTSE Bursa Malaysia (FBM) KLCI is 5.50%. The Treasury bill rate is 3% . Krogh Enterprise has a beta of 1.60. What's the market return?

What is the required rate of return of Krogh Enterprise?