Economics Answers

The growth in the share of government can be attributed to

a) political electioneering
b) an inflation-linked increase in public expenditures
c) public sector labour unions demanding above inflation salary increases for 2017
d) high income-elasticities for certain types of government expenditures

Politicians can cause government failure through?

a) profit maximizing behavior
b)budget maximizing behavior
c) vote maximizing behavior

“Raising income tax will always create a budget surplus”. Evaluate the extent to which you agree with this statement. Use a laffer curve in your answer ( 15 marks)

Discuss whether or not producers would want the demand and supply of their products to be more price elastic.(8)

While the initial accounting for the two types of acquisition (asset acquisition and stock acquisition) differs significantly, a stock acquisition and an asset acquisition in some cases have the same effect of creating one larger single reporting entity and should produce the same consolidated balance sheet. Explain

Differentiate between revenue recognition and prudence?
Explain difference between revenue expenditure and capital expenditure with suitable example?

19. The theory that suggests that our unlimited wants will lead to perpetual economic growth is the
a. classical growth theory.
b. sustained growth theory.
c. old growth theory.
d. new growth theory.
e. Malthusian growth theory.

Perfect competition is the only market structure in which firms are economically efficient in the long run.true or false

3. Suppose in the foreign exchange market that the following exchange rates hold:
£1 = $2.00 £ = British pound sterling
¥1 = $0.20 ¥ = yen
£1 = ¥12 $ = US dollar
How could an arbitrageur make a profit? Assuming flexible exchange rates, how would arbitrage eliminate their profit possibility? What would happen if exchange rates were fixed at these levels?

Do you think banks in America have the same problems that the banks in Ukraine do?

What do you think is the best way for Ukraine to influence more foreign investments into the company?