Economics Answers

U.S. economic growth had slowed to a crawl, and then to a halt. Companies that had stocked up on recent college grads in the tighter labour markets of 1998-2000 found themselves with more than they knew what to do with in 2002 and 2003. They were not eager to hire more. Bonuses and other “perks” disappeared; job offers became scarcer. With the unemployment rate around 6% in May and June of 2003, the job market was far from the worst ever. But it was nothing like the glory days of 2000.

i) Briefly explain and justify what prevailing situation was taking place in the year 2000.

(ii) Identify and explain two (2) fiscal policies and two (2) monetary policies that the US government may have used to correct this situation.

the trade between different countries in the world is called _

Erica and Ladia are planning to open a business however they are not sure as to the type of enterprise suits them for your knowledge, is it possible to convert a close corporation into a company? If so how should they do it?

1] A newborn child receives a $20000 gift towards her tertiary education from her grandparents who insisted the gift should be put in investment for 18 years by the baby’s parents. The highest rate offered was 7%. Parents of the baby opted for the investment to be compounded quarterly.

i. What is the compound interest on the investment

ii. How much is the investment worth.

a. The ABC company is producing an item at a unit cost of $4. If the supply function is q= 160+8p, where q represents quantity produced and p represents the market price, then

i. Find the total cost function in terms of p

ii. What is the market price at which the company realizes a total profit of $500?

A)  In 2004, US Congress allocated over USD20 billion to fight illegal drugs. About 60 percent of the funds was directed at reducing supply of drugs through domestic law enforcement and interdiction. Some critics of this approach argue that supply-side approaches to reduce drug actually help drug producers.

a.     Demonstrate graphically the effect of supply-side measures on the market for illegal drugs.

Demonstrate the effect of both supply-side (law enforcement and interdiction) and demand-side measures (treatment and prevention on the market for illegal drugs). How do they affect the profitability of producers? 

Five final year science students from UNAM started from scratch to mix and filling of sanitisers in batches of 50 containers of 500ml in order to meet the unexpected spike in demand. Each intern is remunerated a rate of N$7.50 per hour of production. It takes 12 hours to manufacture the first batch and a total cumulative time of 27 hours to manufacture the 4th batch.

Required:

4.1Using the learning curve techniques, determine the rate of learning for the given scenario.

4.2Determine the time it take the team to complete the 8th batch.

4.3 The Ministry of Health and Social Services has placed a special order of 150 containers. What would be the incremental direct labor cost for the special order assuming normal production are 8 batches

1. Name and to discuss which two types of inflation my commonly referred to in macroeconomics according to the Keynesian approach(2)
2. List two(2) demand side and four(4)) supply-side initiating factors which may be the immediate causes of possible increase in the inflation rate
3. What are the most well-known causes of imbalances in the balance of payments be BoP of a country(9)
4. The monetarists emphasise the inherent stability of the country in the long run. they also further acknowledge that monetary and fiscal policy could have an impact on the short-run. in the long run no large scale government involvement is necessary since the economy is self-stabilizing explain the statement which is based on six classical roots and indicate which of them apply to the monetarist approach

F. Frans is the workshop supervisor of NBW. She is paid a fixed salary monthly of N$10000. To keep her motivated she is entitled to an annual bonus of N$9000 to her pension fund annually. She works 9 hours per day from Monday to Friday every week. She is also entitled to 28 days paid vacation leave. There are 12 public holidays in the year for which 9 fall on weekends. Assume a 365 days year.

Required:

Using information relating to F. Frans compute Frans s hourly recovery tariff per hour.

TRUE/FALSE

1. Suppose that aggregate demand increases starting from an equilibrium income level. this implies up upwards pressure on the average consumption levels and output that increases. Since the standard of living of employees decreases owing to the higher prices, that employees will start to negotiate higher nominal wages. this is it called a short-run demand adjustment process
2. The interaction between AS and AD over the long run is more complex.It entails that over a period of time the adjustments (shifts) that are set in motion tend to lead the country and more specifically production and employment, to a cyclically stable or cyclically neutral level of “full” or saturated employment.
3. The value of the multiplier(K) depends on factors such as marginal propensity to save (MPS) the marginal propensity to import (MPX) and the marginal tax rate (MTR). The value of the multiplier is therefore in practice between the values of a 1 and 2