Economics Answers

Which statement about transferring funds between 2 assets accounts is true?
A. Debit the account that's increasing & credit the account that's decreasing.
B. Credit the account that's increasing & credit the account that's decreasing.
C. Credit both the account that's increasing & credit the account that's decreasing.

Which statement about deleted & voided transactions is true?
A. Both are recorded & become part of the overall records.
B. Both are removed from the overall records.
C. Voided transactions are removed; deleted transactions are recorded & become part of the overall records.

Which of these accounts has its own register?
Sales, rent expense, or opening balance equity

a) An increase in private savings which is accompanied by an equivalent increase in exports would increase the domestic investment. True or false

The following table represents the market for disposable Mask. PRICE QUANTITY DEMANDED QUANTITY SUPPLIED Rs. 5.00 15 0 Rs.10.00 13 3 Rs.15.00 11 6 Rs.20.00 9 9 Rs.25.00 7 12 Rs.30.00 5 15 Rs.35.00 3 18 a) Plot this data on a supply and demand graph and identify the equilibrium price and quantity. b) Explain what would happen if the market price is set at Rs.30, and show this on the graph. c) Explain what would happen if the market price is set at Rs.15, and show this on the graph.

If a federal interest rate was imposed by the Government 30% ceiling on all loans that would be earned and who will they lose?

Explain how the value of marginal cost affects the values of average variable cost and average total cost and what this means for the relationship between the marginal cost curve and the average variable and total cost curves.

The consumption of electricity in a country from the past 9 years is studied by the power management department. The department has found that the increase in the consumption of electricity follows a linear model. The first year value of the consumption was 51753 (Gwh) and the consumption of the electricity in the 3rd year was 58128 (GWh). Keeping this information, Answer the following questions.

(a) Find the rate at which the electricity consumption changing with respect to time.

(b) Interpret the answer of part (a) in context of the question.

(c) Find an equation that connect the electricity consumption (y) and time (x).

(d) Find the electricity consumption in the 9th year by using the equation obtained in part (c).

Can someone please explain what will be effect of an expansionary fiscal policy on output and price in the short and long run, under fixed vs floating exchange rate regime and perfect capital mobility? What IS-LM and AD-SRAS-LRAS graphs will be used??

A monopolist faces two totally separated markets with inverse demand p=100 – qA and
p=160−2qB respectively. The monopolist has no fixed costs and a marginal cost given by mc= 2 /3
q Find the profit maximizing total output and how much of it that is sold on market A and market
B respectively if the monopoly uses third degree price discrimination.

2. The Capital structure of ABC Ltd, is as under:
Equity share capital - ₹ 100 Lacs
10% Debentures - ₹ 50 Lacs

• The sales for the year 2019 are 1.5 Lac units@ ₹ 40per unit
• Also, the variable cost per unit is 20 % of sales revenue
• ₹ 12 Lacs is the fixed operating cost.
• Assume Income tax rate as 40 %

Calculate Operating, Financial and Combined Leverage of the firm and interpret the result.

Alpha Ltd is expecting annual earnings before interest and tax of ₹ 1.5 Lakhs. The company has 10% debentures of ₹ 4 lakhs and cost of Equity capital is 12%. Calculate the total value of the firm and the overall cost of capital of the firm according to Net Income Approach. Also comment what will happen to the value of the firm and the overall cost of capital if debt is increased in the capital structure.