Economics Answers

4.) A survey by Namibian Statistic Agency (NSA) indicated that kapana is Namibians’
favourite. For each of the following, graphically indicate the possible effects on
demand, supply, or both as well as equilibrium price and quantity of Kapana.
a) A severe drought in Namibia causes farmers to reduce the number of cattle
in their herds by a third-quarter of their stock. These farmers supply beef
that is used for kapana meat at Single Quarter Open Market.
b) A new report by the Veterinary Council of Namibia reveals that kapana
does, in fact, have significant health benefits.
c) The discovery of cheaper animal feed by Neudamm Bush-To-Feed that
lowers the price of cattle.
d) New technology that lowers cattle’s costs of producing.

3. If the price elasticity of demand for tractors priced between $4,000 and $6,000 is
-0.75 (using the mid-point method), what will be the percentage change in quantity
demanded when the price for tractors falls from $6,000 to $4,000?

Dina owns a firm in a compeitive industry that consists of a large number of firms, each of which has the same cost function of the form:
c(w1, w2, y) = (y2+1)w1 + (y2+2)w2. Given these information, answer the following questions:
a) Find the average cost curve of Dina’s firm and describe how it shifts as the factor price w1/w2 changes.
b) Find the short-run supply curve of Dina’s firm.
c) Find the long-run industry supply curve.

7. Suppose that the firm operates in a perfectly competitive market. The market price of his product is $4. The firm estimates its cost of production with the following cost function:

TC=50+20q-5q2+0.33q3

a. What level of output should the firm produce to maximize its profit?

b. Determine the level of profit at equilibrium.

c. What minimum price is required by the firm to stay in the market?

Consider the following data: Nominal GDP for 1993 was $6553 billion, as compared to $6244 for 1992. The GDP deflator for 1993 was 102.6, as compared to 100.0 for 1992. Calculate real GDP for 1992 and 1993, in 1992 prices. Calculate rates of growth of nominal GDP and real GDP for 1993. What was the rate of inflation (as measured by GDP deflator) for 1993?

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is

Select one:
structural unemployment amounting to 5.7 percent of the labor force
frictional unemployment amounting to 0.5 percent of the labor force
cyclical unemployment amounting to 0.5 percent of the labor force Correct
structural unemployment amounting to 0.5 percent of the labor force

during the boom period, the price of a used car decreases and the quantity demanded also decrease. This is violation to the law of demand. why does this happen ? explain graphicall.

The central bank use monetary policy to control undesirable fluctuations in real GDP among other methods by

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

Find mr1 when q1=40?

True or False? A person who engages in entrepreneurial activities is called an entrepreneur.

Is everyone who engages in entrepreneurial activities an entrepreneur?