Economics Answers

what is inflation

Neha would retire 30 years from today and she would need ₹ 6,00,000 per year after her retirement, with the first retirement funds withdrawn one year from the day she retires. Assume a return of 7% per annum on her retirement funds and if her planning is for 25 years after retirement,
Calculate:
a. How much lumpsum she should deposit in her account today so that she has enough funds for retirement?
b. How much she should deposit each year so that she has enough funds for retirement?

Many industries face shocks (negative or positive). Dairy farmers, for example, faced hardship to deliver the products to the consumers and had to dump milk. Whereas some grocery stores were with empty shelves or imposed quota per customer. See

https://wskg.org/news/dairy-industry-upended-by-covid-19/ (Links to an external site.)

What do you think are the elements of rigidity in the short run for the industry? What kind of policy can alleviate the impact of the shock?

Who controls the money supply and how

Consider the tit-for-tat strategy in the repeated prisoner’s dilemma. Suppose that one
player makes a mistake and defects when he meant to cooperate. If both players continue
to play tit for tat after that, what happens?

Suppose that 10 people live on a street and that each of them is willing to pay GHS 2 for each extra streetlight, regardless of the number of streetlights provided. If the cost of providing x streetlights is given by 2 )( x xC  , what is the Pareto efficient number of streetlights to provide?

Clearly describe substitution effect and income effect for a fall in price for a normal good and an inferior good

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

1. Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market.
OUTPUT FIXED COST AFC VARIABLE COST AVC TOTAL COST ATC MC
1 $50 $30
2 $50 $50
3 $50 $80
4 $50 $120
5 $50 $170

a. Fill in the blank columns.
b. What is the minimum price needed by the firm to break even?
c. What is the shutdown price?
d. At a price of $40, what output level would the firm produce? What would its profits be?

How a firm might be able to change the elasticity of demand for its own good