Economics Answers

How do the banks create creadit control?

Da Silva and Ehlers decided to admit Fischer as from 1 January as a partner under the following terms:

Ficsher will receive 1/5 of the profits and losses.

Da Silva and Ehlers will contribute in the ratio of 1:2 toward Fischers 1/5 profit share.

Fischer must pay N$1800000 for her 1/5 share in the partnership assets.

The assets of the partnership were re -valued on 1 January 2018 and the revaluation account revealed a surplus of N$60000.

Required:

Calculate the new profit sharing ratio after the admission of Fichser.

Explore transport as service and industry within the South African economy.

Derive the relationship between marginal cost, wage and marginal product of labour

Suppose a firm employs labor as its only variable input. All workers are paid $200 per day. Output per day and variable cost are shown below.

q 1 2 3 4 5 6 7 8

VC 200 400 600 800 1200 1600 2400 3200

L 1 2 3 4 6 8 12 16

Required:

a)Find each unit of output (Q) calculate the units of labour (L) needed to produce the corresponding output level.

b)If the inverse demand for highlighter is p = 60 - Q. At a price of $20, what is the consumer surplus?

Problem 1:

Figures kept by McClure and Hanover Auctioneers for the past 5 years show that the weight of cattle brought to market has a mean of 950 kg and a standard deviation of 150 kg. What proportion of the cattle have weights of:

1. more than 1,250 kg
   
2. less than 850 kg
   
3. between 1,100 kg and 1,250 kg
   
4. between 800 kg and 1,300 kg?

Problem 2:

A set of observations follow a Normal distribution with a mean of 40 and a standard deviation of 4. What proportions of observations have values of:

1. greater than 46
   
2. less than 34
   
3. between 34 and 46
   
4. between 30 and 44
   
5. between 43 and 47?

MUx = MUy the consumer is not choosing the best affordable (feasible) bundle of goods

Py Py x and y. Explain why?

Martha s preference over two goods x and y is represented by the utility function U = 5xy. Her budget constraint is given by 5x + y = 30

a) Find the MRS

b)Find MRT

c)Given her budget how much of each goods should she consume in order to maximise her utility? show your work.

I have came across a number of articles that test on the Kuznets curve. They are using GDP and log squared GDP as independent variables for their research. I just don't get it why they have to create a brand new independent variable that is the "log squared GDP". What is the purpose of this? Why cant I interpret from the GDP value itself. For example: GDP coefficient is negative, I would just interpret it as a negative relationship between inequality and GDP. Why just why the addition of log squared GDP??? Does it have anything to do with Kuznets curve or what?

A vegetable fiber is traded in a competitive world market, and the world price is $9 per pound. Unlimited quantities are available for import into the United States at this price. The U.S. domestic supply and demand for various price levels are shown as follows:

a. What is the equation for demand? What is the equation for supply?

b. At a price of $9, what is the price elasticity of demand? What is it at a    price of $12?

c. What is the price elasticity of supply at $9? At $12?

d. In a free market, what will be the U.S. price and level of fiber imports?