Economics Answers

Differentiate among Needs, Wants and Demand?

Q2) In Ghana local farmers manage small plots of land for subsistence farming. However, some have benefited by selling pineapples at an agreed, fixed price to an exporter. The exporter provides finance, training fertilizers and machinery and even building materials for the farmers house.

In 2005, European supermarkets changed their mind to a new sweeter pineapple not grown in Ghana. Use demand and supply diagram to explain what happened in the markets of both types of pineapples.

Is GDP a perfect index of economic welfare ? comment.

An individual consumes two goods and her preferences satisfy non-satiation. It
follows that at least one of the two goods must be a normal good. Is this true or
false? Explain your answer.

Firm's capital stock values 650 in 2018 and would like to have the desired capital stock of 900 at the end of 2020. assuming the firm would like to close at least 30% of the gap between 2018 and 2020 each year, calculate the firm's current capital stock and gross investment at the end of 2019 if capital consumption is 20%

Why presence of natural resource is not precondition for economic development

b) Assuming the two goods X and Y and two persons, analyze the exchange of goods between the two using the Edge worth Box framework indicating the Pareto efficient allocation (16Marks).

Define money multiplier?

Billy is a star player for the Los Angeles Lakers basketball team. He is close to breaking the major league record during one season, and it is widely anticipated that in the next game he will break that record. As a result, tickets for the team’s next game have been a hot commodity. But today it is announced that, due to a knee injury, he will not in fact play in the team’s next game. Assume that season ticket-holders are able to resell their tickets if they wish.

Use supply and demand diagrams to explain the following. a) Show the case in which this announcement results in a lower equilibrium price and a lower equilibrium quantity than before the announcement. b) Show the case in which this announcement results in a lower equilibrium price and a higher equilibrium quantity than before the announcement

Who is a shareholder and who is a stakeholder?