Economics Answers

1. suppose you have the following information for a given economy (the values are in billion Birr)

GDP  = 5000

Factor income from abroad  = 40

Factor payment to abroad = 15

Capital accumulation allowance (depreciation) = 450

Personal tax and non tax payments = 600

Social security contributions = 550

Government transfers to individuals = 755

Corporate profit = 300

Dividends = 120

Indirect business taxes = 400

Calculate :

1. GNP 
2. National income 
3. disposable income

Show a diagram how the decrease in income level in country will affect the demand for meat

Briefly describe three differences between futures and forwards [9 marks]

A Hotel in Ville has 1,000 rooms , and the hotel charge customer $ 100 . All the hotel rooms are always rented in any given day . a . To raise revenue , the governor decides to charge hotels a tax of $ 10 per rented room . After the tax is imposed , the price for hotel rooms rises to $ 108 , and the number of rooms rented falls to 900. Calculate the amount of revenue this tax raises for Ville and the deadweight loss of the tax . b . The governor now doubles the tax to $ 20 . The price rises to $ 116 , and the number of rooms rented falls to 800. Calculate tax revenue and deadweight loss with this larger tax . Are they double , more than double , or less than double your answers in part ( a ) ? Explain .

Work out questions1.Given the following information (in millions of Birr)Government final consumption expenditure = 1400Change in stocks = 210Private final consumption expenditure = 820Net domestic capital formation = 275Exports = 175Imports = 225Depreciation = 80Factor income to abroad = 78Factor income from abroad = 194FindA.GDP by expenditure approach(2 Point)B.GNP(2 point)C.NNP(2 point)

Additional information as at 31 December 2021:

1. Closing inventories is RM12,500.
2. Wages and salaries accrued amount to RM700.
3. Rent prepaid amounts to RM300.
4. Bank loan interest of 10 per cent per annum is outstanding.
5. Provision for doubtful debt for account receivables of 2 per cent is to be made.
6. Depreciation is to be charged at 2 per cent of cost on the premises and 10 per cent of cost on the plant.

You are required to prepare the following for G-Mart Sdn. Bhd.:

1. The journals for adjusting entries of additional information ii, iii, iv and v. (8 marks)
2. Statement of Comprehensive Income for the year ended 31 December 2021. (10 marks)
3. Statement of Financial Position as at 31 December 2021. (12 marks)

GoGo Airline's parent company is planning to take a cautious approach in launching MegaSaver. In response to the concerns raised by several shareholders, the parent company is exploring the possibilities of dividing its airline business into two distinct departments and monitoring the working capital of the new airline to prevent any liquidity crises.

The parent company has requested that you prepare a report which can enable it to make an informed decision. You are required to include the following information in the report:

· Critical evaluation of the advantages and disadvantages of divisionalisation to the parent company

· Explanation of various techniques the parent company can use to measure the performance of the proposed divisions and divisional managers

Given quantity demanded t

And supplied as q=36-1/3p and q=- 9+1/2p. If the government decide to impose a tax of 't" per unit supplied determine the value of tax

Suppose Americans decide to save more of their incomes. If banks lend this extra saving to businesses, which use the funds to build new factories, how might this lead to faster growth in productivity? Who do you suppose benefits from the higher productivity? Is society getting a free lunch?

Due to substintial increase in price in country A ,the real income level of population in country A decrease.show a diagram shows how the decrease in the income level in country A will affect the demand for meat which is a normal good