Economics Answers

Which of the following define economic growth the best?
A. Continuous growth in the general price level of property of South Africa.
B. Continuous growth in the real money supply of America.
C. Continuous growth in the total real production level of China.
D. Continuous growth in the general price level of Zimbabwe.

Suppose current interest rate is 6% what price should one expect to pay for 3 month treasury bill with face value of $10000 that is one month?

Consider a bond with face value of $1000 due to mature in one years time. Its current price is $1035 the current interest rate is 5.8%. its coupon is?

Following is the profit function for a firm selling two products:
π=50X-X2+100Y-4Y2
Where X and Y represent output rates of products 1 and 2, respectively
Determine the profit maximizing output rates for the two products and the profit associated with these output rates

One evening, you and your friends are at the retail shop and having a great coffee. While sitting and talking, you noticed that there is homework that need to be done and submit by the end of the day.

How can you relate this scenario with economics way of thinking?

acording to keynes the demand for money is

Paul and Anita value consumption in period 0 (C0) and in period 1 (C1) using the same utility function u = ln(C0)+0.8In(C1). Paul's income in period 0 (y0) is 102 while that in period 1 (y1) is 132. Anita's income is 132 in period 0 and 99 in period 1. Both Paul and Anita pay 22 in taxes in period 0 and in period 1 (i.e. t0 =t1 = 22). Anita can borrow or save at the interest rater. However, everybody knows that Paul is dishonest; As a result, nobody is willing to lend to him. Of course, Paul can still save at the interest rate r. Suppose that r=0.1.

Suppose that the timing of taxes is changed: taxes in period o are reduced to t0 = 12 while those in period I are increased to t1 = 33.

c) How does this change in taxes affect Anita's wealth? Does it change Anita's optimal decisions (C0.C1.S0) from those in b)? Explain. Illustrate with a graph.

d) How does this change in taxes affect Paul's wealth? Does it change Paul's optimal decisions (C0.C1.S0) from those in a)? Explain. Illustrate with a graph.

Paul and Anita value consumption in period 0 (C0) and in period 1 (C1) using the same utility function u = ln(C0)+0.8In(C1). Paul's income in period 0 (y0) is 102 while that in period 1 (y1) is 132. Anita's income is 132 in period 0 and 99 in period 1. Both Paul and Anita pay 22 in taxes in period 0 and in period 1 (i.e. t0 =t1 = 22). Anita can borrow or save at the interest rater. However, everybody knows that Paul is dishonest; As a result, nobody is willing to lend to him. Of course, Paul can still save at the interest rate r. Suppose that r=0.1.

a) Determine how much money Paul would consume in period 0 and in period 1 if he was able to borrow. Determine his actual consumption in period 0 and in period 1. Illustrate both allocations on a graph. What is the cost of this credit constraint?

b) Determine Anita's optimal consumption plan. Find the value of so which allows Anita to achieve this plan.

Private tuition centres are a big industry in a country with over 500 such centres that reportedly serve more than 95% of all college students. Tuition fees can be high and some families pay more than $2000 a month to send their children to private tuition. Using the theory and models of market structure, examine this industry. Should government be worried about any aspect of how an industry with this particular market structure will perform?

In closed, private economy the level of planned investment is 300 and the savings function is s=-100+0.25y.the equilibrium level of income and consumption respectively is