Economics Answers

QN= 100-0.25p
Qw=200-0.5p
The school will admit 180 students from each group (students may choose not to enroll). The marginal cost to the school is constant at Shs 1000 per student course hour.UON'S fixed cost is Shs 2.0million per year.
For each of the following pricing schemes, please derive the optimal price structure and the total profit on the assumption that the UON's objective is to Maximize profit for the program.A single tuition per academic year plus a single fee per course hour.

Consider a community consisting of 20 households who depend on a common well for its supply of water. Clean-up and chemical treatment is required to ensure safety of water from the well. The marginal benefits to each household from clean-up and treatment is given by the equation,
MBx=100-4X
If the marginal clean-up and treatment cost is 100 + 20X where X represents the number of clean-ups and chemical treatment per year,
1. Determine the social optimal number of clean-ups and chemical treatment per year.
2. Compute the net social welfare benefit to each household if the households share the cost of clean-ups and treatment
3. Compute the total social welfare benefit to each household if half of the households pay half the cost of clean-ups and treatment
4. Compute the amount of free riding from the two groups in 3 above

Entered into an agreement with a contractor for $65,000. The contractor will provide services at a future date. How should this be recorded as a journal entry?

Equilibrium level of income is that at which

True or false questions:
1. The horizontal intercept of the Okun’s Law curve for an economy is
that economy’s NAIRU.

2.Liquidity traps can be caused by large negative shocks to the level of
aggregate demand such as is currently occurring in response to
Covid19 virus. __________


3.The concept of “factor price equalization” is directly related to the
“interest rate parity condition” as used in the Mundell-Fleming open
economy macro model.

4. According to the Mundell-Fleming variant of the IS-LM macro model
the effect of an expansionary fiscal policy on the level of fixed
investment is uncertain.

At the beginning of the year 2016,the balance on the Toni's capital account was R35869 during the year Toni made drawings of R17800 and the net profit for the year was R18700. assuming these were the only transactions Toni entered into 2016,what is the balance on his capital account at the end of the 2016?

Sangro ltd(Pty) incurred interest expense of R35000 during the 2016 accounting period.at the end of its 2016 accounting period accrued expenses,relating to interest expense,increased by R7000.the cash payment for the interest during the 2016 accounting was?

explain why the vertical distance between the total cost and total Variable cost curves is constant.

Tapera consumes potatoes and other goods (potatoes is an inferior good). Using the indifference curve analysis draw a graph that clearly show the forces (effects) that determines a consumer final consumption of beef when its price increases, while holding the price of all other goods constant (Hint:note that price of potatoes increase).

With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour hours as your quantity variable.