Economics Answers

If preferences of a consumer are monotonic, then which of the bundles – 3 eggs and 5 toasts or 4 eggs and 5 toasts will the consumer choose?

A University is proposing the development of a modern squash court, next to its current residence hall. For the first five years the University has offered to open the court to local players at student rates to secure local support for its planning application. The University will owe the courts anything it wants after five years. Accordingly, the University predicts that total court income for each of the first five years would be $1200, rising by 12% (compounded) in each of the sixth to tenth years. In the eleventh and twelfth years, increasing operating expenses would entirely outweigh increasing revenues, ensuring that net income stays at the pace of ten years. The site’s set for renovation the end of the twelfth year.It is projected the expense of construction the squash is $6500.

) Give the definition of GDP and explain what items are not included in its calculation? b) How is GDP calculated using the expenditure approach? c) How is GDP calculated using the income approach? d) Research the concept of measuring GDP using the value added approach and provide a working definition? e) Explain the problem of "double-counting" and how it can be avoided in calculating GDP.

Explain in detail the process of Monetary Policy transmission of an increase in the cash interest rate. Use relevant graphs to describe how a Central Bank action on the interest cash rate ripple through the economy and lead to the target policy goal. (Three connected diagrams should be used: (1) money supply and demand (2) investment demand schedule (3) AS/AD diagram. Interest rates is the variable that connects the first and second diagram).

Convert to ECONOMICAL

A. Given that Donald Trump has a net worth of $3.1 billion, how many of this person would per needed to pay off the debt of $22 trillion?

B. Find the GDP of the following country: Egypt
List the year of the GDP and a source, then figure out how many times bigger the national debt $22 trillion compared to this country’s GDP?

QUIZ PRODUCTION

Ikami Bhd, a manufacturer of home furniture, has the following production function:
Q = 35K0.6 L0.8
Q = units of home furniture produced
L = units of labor
K = unit of capital
The current input mix employed by Ikami Bhd is 60 units of capital and 80 units of labor at the price is RM95 and RM110 per unit of capital and labor respectively.

a) Using the current input mixed, calculate the maximum output Ikami can produce and the total cost it has to pay for this input mixed. (3 marks)
b) Derived the expansion path for Ikami Bhd. (5 marks)
c) Is Ikami Bhd operating efficiently with the current input mixed? (3 marks)
d) Determine the least cost input combination given a budget of RM15 000. (4 marks)
e) Based on existing production function and input mixed, what would be the effect on output level if labor input increase by 5% and capital decrease by 10%? (3 marks)
f) Determine the return to scale for Ikami Bhd. Justify your answer. (2 marks)

A firm uses the inputs of fertilizer, labor, and hothouses to produce roses. Suppose that
when the quantity of labor and hothouses is fixed, the relationship between the quantity of
fertilizer and the number of roses produced is given by the following table:

Tons of fertilizer /
month No of roses/ month Tons of fertilizer /month No of roses/ month
0 0 5 2500
1 500 6 2600
2 100 7 2500
3 1700 8 2000
4 2200
(Hint, write out the average and marginal product for each ton of fertilizer)

What is the efficient level of output it must produce at?

A firm uses the inputs of fertilizer, labor, and hothouses to produce roses. Suppose that
when the quantity of labor and hothouses is fixed, the relationship between the quantity of
fertilizer and the number of roses produced is given by the following table:

Tons of fertilizer /
month No of roses/ month Tons of fertilizer /month No of roses/ month
0 0 5 2500
1 500 6 2600
2 100 7 2500
3 1700 8 2000
4 2200
(Hint, write out the average and marginal product for each ton of fertilizer)

What is the efficient level of output it must produce at?

True Wanderer is a decade old leisure and travel company. As a part of the strategic decision to achieve its vision, it decides to conduct training for its call center and other staff selling over the counter products/offers. The company does a thorough research and decides to conduct trainings on the topic of ‘customer centricity’, realizing that giving importance to customers will be the only way to sustainable business. The company hires outside trainers to conducts training based on the outline created by the L&D department of the company. Almost 700 customer care executives and first line staff members are trained and after a year the company sees no effect on sales/ revenue.
a. What do you think is the reason behind failure of the above initiative?
b. Elaborate on the concept of training need analysis with reference to the above case.

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