Economics Answers

A nation’s gross domestic product is

The economy of Lebanon, exhibits the following information.
Which of the following should be included in 2015 GDP? In case it shouldn’t, then explain the
reason.
a. $2000 earned by Lebanese Lawyers in Lebanon 2014.
b. $1000 earned by Egyptian workers in Lebanon in 2015.
c. $5000 earned by Lebanese firm opens a production facility in Bekaa in 2015.
d. $1500 worth of paper all used in Books production during 2015 in Lebanon.
e. 10 kilos of tomatoes a household has harvested from his garden in 2015.
f. $10,000 government unemployed benefits transferred to those who are unemployed in
2015.

Explain the significance of income elasticity of demand values that are negative, positive and zero

Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. In the first quarter of the year,
Henry Gibson earned $3,000 in wages and reported $2,400 in tips to his employer. How much would the employer's FUTA tax be for the first quarter on Gibson?

Explain the relationship between profit maximization condition and the labor demand as shown by equation
MPNi=W/P

Suppose that the money market in Westlandia is initially in equilibrium and the central bank decides to decrease the money supply.
1. Using a diagram like the one in Problem 7, explain what will happen to the interest rate in the short run.
2. What will happen to the interest rate in the long run?

A firm has fixed cost of $100 and average variable cost of $5 X Q, where Q is the number of units produced.
a. Construct a table showing total cost for Q from 0 to 10
b. Graph the firm's curves for marginal cost and average total cost.
c. How does marginal cost change with Q? What does this suggest about the firm's production process?

Based on the international trade effect, how would an increase in the price level in South Africa affect the exchange rate and aggregate demand?

Aggregate spending will increase if....?

The cost of production in the South African economy accelerated due to rising prices of electricity and petrol in the country which led to increase in the prices of domestic goods and services relative to foreign goods and services. This will likely lead to a (n)......

If the government decides to increase personal income tax to raise its tax revenue, what will be the impact on the economy?

Assume an economy does not trade with the outside world. In a given fiscal year, household spent 80% of their disposable income on consumption in addition to 600 consumption expenditure which is independent of income. Total government expenditure of 900 was supposed to be financed from a proportion tax levy of 40% on national income and a lump sum tax of 450. Total private investment spending is 700. Given that aggregate output is equal to aggregate spending.
1.Determine the value of the multiplier.
2. Find the equilibrium level of output

Q1: The Wise Economists, a top rock band, have just finishedrecording their latest music CD. Their record company’s marketing department determines that the demand for theCD is as follows

Price (€) Number of CDs

24 10000
22 20000
20 30000
18 40000
16 50000
14 60000



The company can produce the CD with no fixed cost and aVariable cost of €5 per CD:


a) Find total revenue for quantity equal to 10 000, 20 000 andso on. What is the marginal revenue for each 10000increase in the quantity sold?

b) What quantity of CDs would maximize profit? Whatwould the price be?