Economics Answers

Use data in the following table to explain the economic effects of a price ceiling at $6, at $5, and at $4.
Quantity Quantity
Price demanded supplied
$7 4,500 4,500
6 5,000 3,500
5 5,500 2,500
4 6,000 1,500


Use data in the following table to explain the economic effects of a price floor at $8, at $9, and at $10. Explain the economic effects.

Quantity Quantity
Price demanded supplied
$10 3,000 7,500
9 3,500 6,500
8 4,000 5,500
7 4,500 4,500

Given the products below and the events that affect them, indicate what happens to demand, supply, equilibrium quantity, and equilibrium price in a competitive market. Identify the determinant of demand and supply that causes the shifts.

(a) Home heating oil. There is a severe winter in the regions using the oil; the cost of a barrel of oil rises for producers of home heating oil.
(b) Organic foods. People become more concerned about chemical additives in food; traditional farms are switching to more organic methods.
(c) Film cameras. The price of digital cameras falls for consumers; there is a decline in the number of stores selling film cameras.
(d) Bread. Many consumers adopt a low carbohydrate diet and avoid bread products; the price of flour falls for bread producers.

Evaluate, using an appropriate diagram, the effectiveness of the use of fiscal policy as a method of achieving the UKs macroeconomic objective (20 marks)

Evaluate, using an appropriate diagram, the effects of reducing the subsidy for university education (20 marks)

Imagine you own a firm which is producing leather shoes.what causes the supply of leather shoes to decrease

khadi and village industries, being a part of MSME were facing some issues related to sales with big brand apparel industry competitors. the length of production is small and labour intensive whereas the inventory holding period and average collection are huge. Reducing operations is also not a way to deal in this solution.You are appointed as a finance manager in the company to deal with the problem of working capital management. You further faces the problem of compromising between liquidity and profitability. What strategies you would adopt as finance manager to solve this problem

Why do entrepreneurs prefer sole proprietorship to other legal forms of business

working capital is the excess of current assets over current liabilities but companies like hul,godrej, bharti airtel, hero motocorp, faces the negative working capital in their operating life. thus their current lliabilities exceed their current assests in some years.what is your belief in this regard,can working capital ever be negative or zero for any company? if yes than what shall be the repercussions if a company has(a) dearth of working capital (b)overloades of working capital

working capital is the excess of current assets over current liabilities but companies like hul,godrej, bharti airtel, hero motocorp, faces the negative working capital in their operating life. thus their current lliabilities exceed their current assests in some years.what is your belief in this regard,can working capital ever be negative or zero for any company? if yes than what shall be the repercussions if a company has(a) dearth of working capital (b)overloades of working capital

Calculate National income by income method and expenditure method:
Items Rs in Crores
Subsidies 5
Private Final consumption expenditure 100
NFIA -10
Indirect taxes 25
Rent 5
Government Final consumption expenditure 20
Net domestic fixe capital formation 30
Operating surplus 20
Wages 50
Net exports -5
Addition to stock -5
Social security contribution by employers 10
Mixed income 40
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