Economics Answers

IS is Y = 2500-50i, and the interest rate reaction function is ip = 2 + 0.5(P-P*), where ip is the central bank policy rate. Assume that i (interest rate) is 0.5 + ip (interest rate is a wedge over the policy rate)

The department of transport under the motor vehicle office, attempts to perform an analysis of the drivers licence renewal operations. In the past each renewal followed six steps to be performed and took an hour to finish. Calculate the daily productivity,assuming that the working time is eight hours a day.

Clayton Industries is planning its operations for next year. Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Last year's sales = S0 $350
Last yr's accounts payable $40 Sales growth rate = g 30% Last yr's notes payable $50 Last year's total assets = A0* $360 Last yr's accruals $30 Last year's prof margin = PM 5% Target payout ratio 60%. a. $67.0 b. $78.7 c. $63.9 d. $77.9

3) How has the size of the price rise been affected by the price elasticity of demand for brazil nuts?

4) What determines the price elasticity of demand for brazil nuts? Explain in detail

Explain mathematically how a producer can obtain his optimum level of output that will maximize the profit of the firm. In a perfectly competitive market, the market orice of a commodity is 3 per unit of output(Q) the totel cost function of the firm is given by
c = 1/3 Q - 4Q2 + 10Q + 10 find the profit maximising output.

In a comparative market model
Qd = a - bp ( a,b>0
Qs = - c + dp ( c,d>0)
Qd = Qs what should be the rate of tax per unit of output that the government should impose in order to maximize its tax revenue?

Define Economic development. Explain the various indicators of economic Development.

The following information refers to the spending in Laddacity Country.(All values are in
USD million).
Consumption Function 350+0.65Y d
Investment Expenditure 150
Public Expenditure 250
Tax 20
Net Exports 120

A. Compute the equilibrium level of national income for the above economy?
B. Assuming that full employment would be experienced at an income level of USD3000
million, State the problem this economy is facing, illustrate your answer with a well-
labeled diagram.
C. Using the spending multiplier compute the change in the amount of government
spending that is required to achieve the full employment income level
D. What is the marginal propensity to save (MPS) and the relationship between MPS and
marginal propensity to consume (MPC)?

Why wealth inequalities can magnify the effect of fiscal multipliers effects?

If gas prices fell sharply, what would economists expect to happen in the market for fuel-efficient hybrid cars?