Economics Answers

4.) Given the following information: utility function is U(x,y)=〖4x〗^0.5 y^0.5 , price of good X is N$5, the price of good Y is N$10 and the consumer income N$400.
What is the level of quantity demanded of good Y when the price of good X decreases to N$2.5 while the price of good Y remains at N$10? Let us assume good X is on the x-axis.

2.) Given the following information: utility function is U(x,y)=〖4x〗^0.5 y^0.5 , price of good X is N$5, the price of good Y is N$10 and the consumer income N$400.
What is the level of quantity demanded of good Y when the price of good X and Y is N$4 and N$10 respectively? Let us assume good X is on the x-axis.
3.) Given the following information: utility function is U(x,y)=〖4x〗^0.5 y^0.5 , price of good X is N$5, the price of good Y is N$10 and the consumer income N$400.

Given the following information: utility function is U(x,y)=〖4x〗^0.5 y^0.5 , price of good X is N$5, the price of good Y is N$10 and the consumer income N$400.
What is the level of quantity demanded of good X when the price of good X and Y is N$4 and N$10 respectively? Let us assume good X is on the x-axis.

Use the following data to answer Questions 1 through 14:
Data Mining is considering an expansion project. The company’s management has decided that the initial cost of the project is $300,000 with an additional installment cost of $80,000 and a $30,000 cost for research purposes related to the project. The project’s life is four years with a salvage value of $60,000 and it will be depreciated over four years using the straight-line method.
Management has also decided that $45,000 in inventories and $12,000 in accounts payable are needed if the project is taken today.
During the next four years, total sales are expected to be 525,100, 642,000, 504,400 and 698,500 respectively and total operating costs (excluding depreciation) are expected to be 234,000, 302,300, 272,000 and 440,000 respectively
The weighted average cost of capital is at 10% and the tax rate is 40%.
1. The net working capital (NWC) equals: *
A. $33,000
B. $45,000
C. $57,000
D. $47,000

The insurance market covers various types of risks. There are all kinds of insurance -- home insurance, life insurance, car insurance, to name a few. Some insurance, such as car and health insurance, is mandatory. Some, such as life insurance and catastrophe insurance, are optional. What do you think are the common features of the risks that are required to be insured mandatory? And why do these risks require mandatory insurance?

Q=f(L,K)= K1/4.L1/4 is the production function increasing, decreasing or constant?

Assuming that a 20% increase in the price of tomatoes leads to a 4% reduction in the quantity of tomatoes demanded what is elesticity

Recognise the following transaction in the accounting records(general journal).

1. The following events, as authorised by the owner on 31 december 2019,still has to be recognised:
•A loss to the amount of R66 800 resulting from the confirmation that certain inventory items' cost price is more than the net realisable value thereof.
•A donation of trade inventories to a local institution to the amount of R10 00.

Recognise the following transactions in the accounting records(general journal)

1. Trade inventories, with a cost price of R44 000, that were taken by the owner during december 2019 for personal use,were accounted for as follows: cost of sales was debited and trade inventories were credited with R44 00. The necessary adjustment is still has to be recognised.
2. The term deposit of R900 000 was made at the bank on 30 june 2019 for a period of 12 months. The interest rate is 8% per year and the interest accrues evenly over the term of the deposit

Write a critical note on equal weighting principle of construction of the human development index (HDI) ?