Economics Answers

The total cost of producing Q units of a given product is given by TC = 500+ 4Q2-12Q. Compute Marginal cost and average cost

There is a conflict between the manager and one of the employees in the procurement department of the company. They are in disagreement on whether the company should make charitable. According to the manager the company should not give money to charity because it does not generate any income

Suppose that aggregate demand increases, starting from an equilibrium income level. This implies upwards pressure on the average consumption levels and output that increases. Since the standard of living of employees decreases owing to the higher prices, the employees will start to negotiate higher nominal wages. This is called the short-run demand adjustment process. True or False

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 economy and , more specifically production and employment, to a cyclically stable or cyclically neutral level of full or saturated employment. True or False

Changes in GDP are reflected in the business cycle, as well as the rate of inflation and the overall balance of payment situation. True or False

The value of the multiplier (K) depends on factors such as the marginal propensity to save (MPS), the marginal propensity to import (MPX) and the marginal ta rate (MTR). The value of the multiplier is, therefore, in practice between the values of 1 and 2. True or False

Draw income offer curve and their corresponding Engel curve for the following commodities.

i) Commodity 1 is a perfect substitute for commodity 2 and price of commodity 2 is less than commodity 1.

ii) Commodity 1 is inferior and 2 is normal

The equilibrium levels of income (Y),real investment and gross national expenditure are determined by the intersection of the AS and AD curves

True or false

on 1st January 2017, Mwanawasa Ltd, had in issue. 800.000 Ordinary shares with a par value of sh 10 each. on 31st october 2017 the company issue 100,000 Ordinary shares at full market Price of Sh 20 cach. on 41st December 2018, the director decided to declare a bonus issue of I for 4 on 31st December 2019, thedirectors decided to declare a a right issue for 1 for 5 at a Price of sh 20. on the day immediately before for right issue took effect, the shares of this company were trading qt sh 25 each. Mwanawasa Itd does not have any preference Share in issue. The Post tax earning for the year 2017, 2018 1 and 2019 were £ 350.000 and € 520.000 and £ 430.000 respectively.

Required

a) compute the Basic EPS for the years 2017, 2018, 2019.

b) comment on the financial Performance of the company in the year 2018 and 2019.

Does the gravity model predict or explain Namibian exports?

Instructions

 Discuss the above assignment question

 Length: not more than 5 pages

 Use 12 pt font size

 1.5 line spacing

 Your paper could have the following sections (just indicative)

o An introduction/background

o Namibia’s trade position – specific goods/services and trade partners

o Discussion

o Conclusion