Economics Answers

What are the effect of COVID-19 on transport sector

A firm sells its output in a perfectly competitive market at a fixed price of R200 per unit. It
Buys the two inputs K and L at prices of R42 per unit and R5 per unit respectively, and faces the production function
q = 3.1K0.3L0.25
What combination of K and L should it use to maximize profit?

Answer the following questions about trading strategies in efficiently inefficient markets.
(a) Describe and explain the main idea behind the three equity strategies discussed in
class. Why might these strategies profit over the long-term? Why might they not?
(b) Some hedge funds make money by providing liquidity to the market. Discuss.
Support your answer with examples.

VII- Your couple and you have decided to put aside $7,500 a year for retirement. Assuming that you can earn 9% interest on your investment, what would be the total amount in your account after 32 years?

1. A country imports 3 billion barrels of crude oil per year and domestically produces another
3 billion barrels of crude oil per year. The world price of crude oil is $90 per barrel.
Assuming linear schedules, economist estimate the price elasticity of domestic supply (Es)
=0.25 and the price elasticity of domestic demand (Ed) to be 0.1 at the current equilibrium.
Suppose now there is an imposition of a $30 per barrel import fee on crude oil that would
involve annual administrative costs of $250million. Assume that the world price will not
change as a result of the country imposing the import fee, but that the domestic price will
increase by $30 per barrel.
i) Determine the quantity consumed, quantity produced domestically and quantity imported
after the imposition of the import fee.
ii) Determine the effect of the imposition of the import fee on consumer surplus, domestic
surplus and on government.
iii) Estimate the annual social net benefits of the imposition of the import fee.

a) Price of Pepsi is Rs.120 and its quantity demanded is 300 bottles. Suppose due to Raman Pepsi company reduces price of it to Rs. 108 ,due to it its demand increases to 360 bottles. Calculate elasticity and also mention the type of elasticity.

Complete Part 2 of Form 940 based on the following information: (Round your answers to two decimal places, if necessary.) Total payroll for the year $913,590.
Payroll to employees in excess of $7,000 $421,930.
Employer contributions into employees' 401(k) plans $23,710 Part 2: Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank.
Retirement/Pension
Subtotal $445,640.
Total taxable FUTA wages $467,950.
FUTA tax before adjustments $2,807.70.
If the employer is located in California, which has a credit reduction of 2.1%, what would be the amount of the credit reduction?

Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages.
Hunter Company had a FUTA taxable payroll of $192,700 for the year. Since the company is located in a state that has 1.5% FUTA credit reduction due to unpaid loans, determine Hunter's FUTA tax liability for the year.

Discuss the effectiveness of supply-side policies in increasing the supply of enterprise to the
economy?

The production function at Ginko’s Copy Shop is q = 1000 × min(L, 4K) , where q is the
number of copies per hour, L is the number of workers and K is the number of copy machines.
As an example if L=10 and K=1 , then min(L, 4K) = 4 and q = 4000
a) Draw the isoquants for this production function?
b) Fix the level of capital at 50. Draw the total product , average product, and marginal
product of labour curves for this production function.