Economics Answers

Explain the effect of investment subsidy on equilibrium interest rates
, consumption, investment and GDP
compare the result with other fiscal policy measures

If one watch costs $500, what is the aggregate demand for watches in
Stickmanland? Would a change in the cost of watches result in a change in aggregate
demand? How

total fixed cost=Rm100 per period. average function is AVC=60-12Q+Q^2. AVC represents average variables cost(RM) Q represents rate of output(units)
A. determine TVC function
B. What is TC function?
C. Determine MC function?
D. Calculate the rate of output at which marginal cost is minimum?
E. compute min marginal cost?

3. Given utility function U= X0.5Y0.5 where PX = 12 Birr, Birr, PY = 4 Birr and the income of the consumer is, M= 240 Birr.
a. Find the utility maximizing combinations of X and Y.

b. Calculate marginal rate of substitution of X for Y (MRSX,Y) at equilibrium and interpret your result.

Given that we look for a balanced unemployment rate of 6%, we think a GDP growth rate of 3% is great and aim for 1-3% inflation, explain which country do you believe had the best economic outlook before COVID-19?

7.) Assume a linear demand function of the form:
Qd = 120 - 5P
and a linear supply curve of the form:
Qs = -30 + 10P
Using these demand and supply functions, answer the following questions. Once you
have had a go at the questions, follow the link below to compare your answers.
a) Calculate the quantities demanded and supplied for prices from $3 - $15.
b) Plot these figures to give the demand and supply curves for the product.
c) Using simultaneous equations, calculate the equilibrium price and output.

6.) Use a diagram to illustrate how each of the following events affects the equilibrium
price and quantity of Mexican pizza in Namibia.
a) The price of mushroom rises. Mushroom is the main in Mexican pizza.
b) The health hazards of hamburgers are widely publicised. Hamburgers are
substitute of pizza.
c) The price of tomato sauce falls. Tomato sauce is compliment to Mexican
pizza.
d) The incomes of consumers rise and Mexican pizza is an inferior good.
e) Consumers expect the price of Mexican pizza to fall next week.

5. According to classical economic theory, which of the following do changes in the money supply affect?
a. real GDP
b. real interest rates
c. the price level
d. unemployment


7. Which of the following does the downward slope of the aggregate-demand curve show?
a. that an increase in the money supply causes the aggregate quantity of goods and services demanded to increase
b. that an increase in the money supply causes the aggregate quantity of goods and services demanded to decrease
c. that an increase in the price level causes the aggregate quantity of goods and services demanded to increase
d. that an increase in the price level causes the aggregate quantity of goods and services demanded to decrease

10. Which of the following shifts aggregate demand to the right?
a. a decrease in the money supply
b. a decrease in net exports at every exchange rate
c. a decrease in prices
d. a decrease in taxes

5.) Sketch and explain the demand relationship in each of the following statements.
a) I would never buy donkey meat! You couldn’t even give me one for nothing or
for free.
b) I like canned fish and if the price falls to N$2 per can, I’ll buy out the entire
stock of the Neudamm Campus tuck-shop.
c) Regardless of the price, the quantity demanded of fat-cake by students at
Sam Nujoma Campus doesn’t change.

2. Which of the following does the economy experience during a recession?
a. rising employment and income
b. rising employment and falling income
c. rising income and falling employment
d. falling employment and income


____ 3. Which of the following best defines business cycles?
a. long-term trends in economic activity
b. regular, predictable fluctuations in GDP
c. the rise and fall of multinational companies
d. fluctuations in the economy