Economics Answers

A loan of $8 000 is to be amortized with equal monthly payments over 2 years at j12 = 15%. Find the outstanding balance after 7 months and split the eighth payment into interest and principal portions.

with the help of diagram explain the effects and incidence of a subsidy in a market for essential transport.

What is the contribution of the informal sector in the Philippine economy?

Suppose investor A has $20 000 in his account and drives 4 utiles of utility from this amount and would derive 5 utiles if he had $40 000.He is faced with a choice to invest the $20 000 in a project that has 60% of earning a profit of 20 000 and 40% probability of losing $20 000? 1. Is the manager likely to invest in project?

If a monopolistically competitive industry is in long-run equilibrium and suddenly the cost of resources increases, then:

Select one:
a.
some firms will eventually leave the industry.

b.
new firms will eventually enter the industry.

c.
the demand and average-revenue curves will shift to the left.

d.
the cost structure of the firm will shift down.

e.
the demand and average-revenue curves will shift to the right.

In the small town of Geneva, there are five firms that make watches. The firm's respective output levels are (watches per year):

first firm 30,

second firm 20,

third firm 20

fourth firm 20

fifth firm 10.

Given the information above, compute the four-firm concentration ratio and Herfindahl index for the watch industry in Geneva. Based on your calculations, is the watch industry in Geneva monopolistically competitive or is it oligopolistic? Explain your answer.

Under the long-run equilibrium, for perfectly competitive markets without any government intervention,:

Select one:
a.
consumer surplus is maximized.

b.
producer surplus is maximized.

c.
producer surplus is greater than consumer surplus.

d.
consumer surplus is greater than producer surplus.

e.
the sum of consumer and producer surplus is maximized.

it Is often suggested that the Bank of Canada tries to achieve zero inflation. If we assume that velocity is constant, does this zero inflation goal require that the rate of money growth equal zero? If yes, why? If no, then what should the rate of money growth equal?

suppose the government passes a law that significantly increases the minimum wage. the policy will cause the natural rate of unemployment to