Economics Answers

A person has 100$ to spend on goods X and Y whose respective prices are 3$ and 5$. what happens to the original budget line if the budget falls by 25%

Sachin has asked his flat mate Jason for a $400 loan to cover a portion of his rent and utility costs. Sachin proposes repaying the loan with $350 from each of his next two financial aid disbursements, the first 3 months from now and the second 12 months from now. Jason's alternative is to earn 4% annually in his money market account. Assume there is no risk of default, and that compounding is monthly. What is the NPV of the loan from Jason's perspective?

Critically discuss elastic, inelastic and unitary conditions/forms of price elasticity of demand through the use of practical examples and graphs.

An increase in private saving which is accompanied by an equivalent increase in exports would increase the domestic investment.True or false? Explain

Central bank can keep either the money supply or interest rate constant. Under which case, will the fiscal policy have the strongest effect on the output and why? Explain using a diagram.

You plan a major adventure trip for the summer. You won’t be able to take your usual
summer job that pays $6,000, and you won’t be able to live at home for free. The cost of
your travel accomodations on the trip will be $3,000, gasoline will cost you $200, and
your food will cost $1,400. What is the opportunity cost of taking this trip

The university has built a new parking garage. There is always an available parking spot,
but it costs $1 per day. Before the new garage was built, it usually took 15 minutes of
cruising to find a parking space. Compare the opportunity cost of parking in the new
garage with that in the old parking lot. Which is less costly and by how much?

Q – 1: 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 factors of demand or supply) take place into the market of electricity then how it will affect equilibrium point, equilibrium price and equilibrium quantity of electricity in Bangladesh. Use graphical representation for each case separately to answer your question. Label and interpret each diagram.
Incomplete case does not carry marks. (1 x 8)

(i) If proportion of general sales tax (GST) on electricity is increased by the Govt. of Bangladesh.
(ii) When the overall prices of the factors of electricity increase.
(iii) Govt. of Bangladesh opens up doors for Research and development for all the firms to produce cheap electricity in Bangladesh.
(iv) During the new fiscal year; Govt. of Bangladesh has decided to decrease the proportion of direct personal tax.

A company pays dividends of 5 dollars in one year. If investors require a return of 8% per annum and dividends are expected to grow at 2% what is the value of the company’ stock?

Explain the effect of a shortage on prices.