Economics Answers

Asset GBP

Budgeted profits for the year 10,575,000

Asset base at the start of the year 58,925,000

Budgeted asset base at the end of the year 69,500,000

Average asset base 64,212,500

ROA (average of opening and closing assets) 16.5%

Calculate the budgeted ROA for sales outputs of 4,200,000 and 4,500,000 units.

When estimating a demand function, explain why fitting a line of best fit through observed price and quantity combinations over time is not likely to yield good estimates. please show graphs

Suppose that campus authorities reduce the supply of alcohol on campus. Use demand and supply
graphs to illustrate the impact on the campus alcohol and marijuana markets.

A group of boy scouts consisting of 5 people was entrusted with 2 tasks: the first was to repair the fence and the second was to paint the walls of the building. Regardless of the number of people performing the task, one scout can either paint 20 walls or repair 10 fences in one week.

Is it possible for the group to paint 60 walls and repair 60 fences during the week?

Assignment 1
As a member of Ghana’s economic planning team for the 2020 fiscal year, answer the under
listed questions (a & b) given that:
Y = C + I + G + X - M....................................................... (1)
C = 0.8Yd............................................................................ (2)
M = 0.2Yd........................................................................... (3)
Yd = (1-t)Y.......................................................................... (4)
Additional information: t = 0.2Y (tax rate), G = 400 (government spending), X = 280
(exports) and I = 300 (investment)
(a) Solve for the equilibrium level of national income
(b) Assume a marginal propensity to import (my) of 0.3 and solve for the new
equilibrium national income

In 2010 Wisconsin went from a closed shop state to a right to work state. Teachers' unions disliked the change and protested violently. Paul Krugman, a Nobel Prize winner, Princeton economic professor, wrote an article against the change and in support of the unions. He looked at a study from the federal department of education that showed that k-12 average test scores in Wisconsin were higher than in Texas, a right to work state with non-unionized teachers. Two economists from the University of Chicago which has on the top economic departments in the country, broke the same data down by race and found that Asians in Texas had higher avg test scores than in Wisconsin, Caucasians in Texas had higher average test scores than in Wisconsin, African-Americans in Texas had higher average test scores than in Wisconsin and Hispanics in Texas has higher average test scores than in Wisconsin. Both sides made correct statements. How can they be reconciled and what does it say about Krugman's argument?

Assume that two identical firms in a purely oligopolistic industry selling a homogenous product agree to share the maket equally. The total market demand function for the commodity is Qd = 240 – 10P. The cost schedules of the firms are given in the following table:

q1 40 50 60 80 q2 50 70 100
SMC1 (Rs.) 8 10 12 16 SMC1 (Rs.) 4 6 9
SAC1 (Rs.) 13 12.3 12 13 SAC1 (Rs.) 7 6 7

Question 1: Profits for this firm will be:
a. Rs. 420
b. Rs. 130 (wrong)
c. Rs. 350
d. Rs. 450
Question 2: When q1 = 40, What will be MR1?
a. 2
b. 8 ✓
c. 5
d. 4
Question 3: When q1 = 40, what will be the profit maximising output for the first firm?
a. 30
b. 60
c. 40 ✓
d. 20
Question 4: When q1 = 50, what will be MR1?
a. 7
b. 2
c. 4 ✓
d. 3
Question 5: When q1 = 60, what will be MR1?
a. 0 ✓
b. 2
c. 4
d. 6
Question 6: When q1 = 80, what will be MR1?
a. 7
b. -4
c. 5
d. -8 ✓
✓ mark are the right answers. Please give explanation for this problem

Mr.Ahsan has an income of Rs.50,000 and he purchases 200 units of Y-GOOD. His
income increases by 30% and now he can purchase 220 units of Y-GOOD. Calculate
elasticity.

What were 3 of the most serious consequences of the shutdown, and why were they so serious?

A market for electricity is in equilibrium in bangladesh at a point where both supply and demand curves intersect each other. If the following events ( price factors or non price factor of demand or supply) take place into the market of electricity then how it will effect equilibrium point, equilibrium price and equilibrium quantity of electricity in bangaldesh. Use graphical representation for each case seperately to answer your question. Label and interpret each daigram

1. Electricity tarrifs are decreased by the government in bangladesh