Learn more about our help with Assignments: Economics
Search & Filtering
6. Duration is a widely used measure of a portfolio’s exposure to yield curve movements. You have a 9 percent, $1000.00 bond with 4 years to maturity paid interest semi-annually. Its YTM is 10 percent. Calculate the market value of the bond.
For each of the following events, consider how you might react. What things might you consume more or less of? Are your responses consistent with the discussion of household behavior?
1. You have a very close friend who lives in another city, a 3-hour bus ride away. The price of a round-trip ticket rises from $20 to $45.
2. Tuition at your college is cut 25 percent
3. You receive an award that pays you $300 per month for the next 5 years.
4. The price of food doubles. (If you are on a meal plan, assume that your board charges double.)
1. You have a very close friend who lives in another city, a 3-hour bus ride away. The price of a round-trip ticket rises from $20 to $45.
2. Tuition at your college is cut 25 percent
3. You receive an award that pays you $300 per month for the next 5 years.
4. The price of food doubles. (If you are on a meal plan, assume that your board charges double.)
1.Calculate the midpoint price elasticity of demand using the price of $5 and $7. The demand function is:
Q = 1,500 - 200P
Where Q is quantity demanded and P is price.
2.A new company estimates fixed costs for its product of $50,000 per year and average variable costs of:
AVC=$0.5+$0.0025Q,
Where AVC is average variable cost (in dollars) and Q is output.
Calculate total cost and average total cost for the projected first-year volume of 20,000 units.
3.Calculate profit from the following demand and total cost functions at output level of 160 units:
Q = 448 - 16P
TC = 1000 + 5 Q
Q = 1,500 - 200P
Where Q is quantity demanded and P is price.
2.A new company estimates fixed costs for its product of $50,000 per year and average variable costs of:
AVC=$0.5+$0.0025Q,
Where AVC is average variable cost (in dollars) and Q is output.
Calculate total cost and average total cost for the projected first-year volume of 20,000 units.
3.Calculate profit from the following demand and total cost functions at output level of 160 units:
Q = 448 - 16P
TC = 1000 + 5 Q
Q2) Mr. Umais can earn money from various activities. His hourly earnings from cricket is Rs.5,000, acting Rs.30,000, coaching Rs.10,000 and ceremonies Rs.15,000. What is the opportunity cost of an hour of coaching for Umais?
What is protectionism? If Canadian government imposes a quota, explain using a diagram who are gainers and who are losers? If instead Canadian government imposes a tariff, explain using a diagram who are gainers and who are losers? What are the additional benefits of a tariff over a quota?
Draw a properly labelled diagram showing profit for a monopolistic
competitive firm.
(b) Explain with the help of a diagram that the representative firm in a monopolistic competitive market makes only normal profits in the long run.
(c) Compare and contrast the equilibrium of a perfectly competitive firm and a monopolistic competitive firm in the long-run.
competitive firm.
(b) Explain with the help of a diagram that the representative firm in a monopolistic competitive market makes only normal profits in the long run.
(c) Compare and contrast the equilibrium of a perfectly competitive firm and a monopolistic competitive firm in the long-run.
A firm in a monopoly market is facing a demand curve P=100-2x , total revenue curve TR=10x2x2 and has total cost C=10+2x.
a) Find the profit maximizing output and price?
b) Is this firm making a profit? Calculate the profit.
c) Show this on a graph.
a) Find the profit maximizing output and price?
b) Is this firm making a profit? Calculate the profit.
c) Show this on a graph.
Using a production possibilities curve, illustrate and explain the following circumstances for ;
1.3.1 A shift in production from a towards b?
1.3.2. An increase in the minimum wage rate?
1.3.3. Advancement in the capital used for b production?
1.3.1 A shift in production from a towards b?
1.3.2. An increase in the minimum wage rate?
1.3.3. Advancement in the capital used for b production?
a) Consider first the goods market. Say, consumption, investment and taxes all are dependent on income. Government expenditure is given.
C = c0 + c1 Yd
T = t0 + t1 Y
Yd = Y – T
I = b0 + b1 Y – b2 i
a) What is the multiplier?
Next, consider the money market as well, given by the equation M/P = d1Y - d2i.
b) What is the multiplier now?
c) Compare the multiplier derived in part (a) and part (b). Explain in words. [Note: Diagram is not mandatory for this question, but will definitely help obtain additional marks if theory goes wrong.]
C = c0 + c1 Yd
T = t0 + t1 Y
Yd = Y – T
I = b0 + b1 Y – b2 i
a) What is the multiplier?
Next, consider the money market as well, given by the equation M/P = d1Y - d2i.
b) What is the multiplier now?
c) Compare the multiplier derived in part (a) and part (b). Explain in words. [Note: Diagram is not mandatory for this question, but will definitely help obtain additional marks if theory goes wrong.]
Assume “Skill India” policy implemented by Ministry of Skill Development and Entrepreneurship (MSDE) in 2014 is doing well and has been successful in helping many workers learn new skills. Further, the program has reduced the structural (or, natural) rate of unemployment in India, un.
a) Using the concept of Phillips curve, comment on how the reduction in un is beneficial for the economy?
b) The opposition claimed that government program is expensive. Instead, the expansionary monetary policy could have been a cheaper way to cut the unemployment. Comment.
a) Using the concept of Phillips curve, comment on how the reduction in un is beneficial for the economy?
b) The opposition claimed that government program is expensive. Instead, the expansionary monetary policy could have been a cheaper way to cut the unemployment. Comment.
