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State various economic transactions, which are used to study circular flow of an
economy.
Why might governments intervene to encourage firms to develop and adopt new technologies
Balances at 31 January 2009:
Debtors control account.............................$32,400
Creditors control account...........................$25,200
Inventory...................................................$30,000
Balances at 28 February 2009:
Debtors control account.............................$24,000
Creditors control account...........................$29,160
Inventory...................................................$36,000
Extract from cash payments journal at 28 February 2009:
Payments to creditors.................................$41,040
Additional Information:
a) Gross profit mark-up is 20% on cost
b) Inventory is kept on the perpetual system
c) All purchases and 80% of sales are on credit
Required:
a) Calculate purchases.
b) If purchases during February were $39,000 what is the Cost of Goods Sold for February?
During the Revolutionary War, the American colonies could not raise enough tax revenue to fully fund the war effort. To make up the difference, the colonies decided to print more money. Printing money to cover expenditures is sometimes referred to as an inflation tax. Who do you think is being taxed when more money is printed? Why?
The population in country C decreases due to a lower birth rate.at the Sametime there is an increase in the cost of fertilizer which is used to grow vegetables. Explain how the market for vegetables will be affected by these changes
The price elasticity of demand for urban transitfares has been estimated to lie between
-0.1 and -0.6. Based on these results, what isthe economic argument forraising transit
fares? What political arguments might local governments and transit authorities
encounterin opposition to these economic arguments?
If the pre-tax cost function for John’s Shoe Repair is C(q) = 100 + 10q - q2 + 1/3
q3, and it faces a specific tax of t = 10, what is its profit-maximizing condition if the
market price is p? Can you solve for a single, profit-maximizing q in terms of p?
(Hint: See Exercise 3.3 and Solved Problem 8.2.)
Scenario #1: Stewart Company signed one of its biggest clients in history, the company was able to tie the client to a two year contract, at $2,000,000 for year 1, with a 50% increase in year 2. The terms of payment is quarterly with first payment due upon completion of implementation. Additionally $200,000 implementation fee that is set to be completed on Jan 31, 2022. Please provide journal entries to be booked as it relates to the terms of this contract for ME (month-end) close for the periods of Jan 2022, Feb 2022 , May 2022, Aug 2022, Dec, 2022, and Feb 2023.
use a foreign exchange diagram to illustrate and explain the effect of the increase in commodity prices on the rand-dollar exchange rate, ceteris paribus.
- consider the following information for a hypothetical economy:
C = 200 + 0.75(Y – T) I=G=250 T=200 where, Y=C+I+G
All figures are in millions except the measures of responsiveness.
- What is the value of marginal propensity to save(MPS) ?Interpret it.
- Find the equilibrium level of national income
- Find the government expenditure multiplier ? using this multiplier , find the effect of 50 million increase in government purchase on equilibrium income ?
