Economics Answers

“If a country is a net importer, then gold will leave the country until it has no gold left.” True/False. Explain.

Find the value of X & Y in the given linear equations 3x+2y=14 and 5x+4y =26 .


Eco255 test questions

In this activity you will determine if the person in each of the 10 following scenarios has to file or should file a tax return. Be prepared to explain your reasoning!

Consider a hypothetical industry that manufactures a physical output. Three possible industry structures are depicted. Industry structures are depicted at scale (e.g., like on a road map).



Clearly identify the two structures that you elect to use in questions (1A) and (1B). If you do not clearly identify two structures, you will not earn points on parts (1A) and (1B).



First structure: ______________________ (0 points)

Second structure: ______________________ (0 points)



(A) Select a force. In which structure is the force threat lower? Why? (1 point total).

Force: ______________________ (¼ point)





(B) Select a force different from the force used in part (1A). In which structure is the force threat higher? Why? (1 point total).

Force: ______________________ (¼ point)

In the winter, which is the peak season for winter coats, the price of winter coats is typically higher than it is in the summer. In the case of strawberries, however, the reverse is true: The price of strawberries is lower in the peak season than it is in the winter season. Provide THREE reasons to explain this seeming contradiction.

the supply and demand functions for a product are defined as Qs =100 and
Qd =50P^1/2 + 10
i)find the equilibrium price and quantity

ii)sketch a graph to show the results in (i)above

iii)Assume the equilibrium price is 80 pesewas (p=0.80)
find the PES and PED associated with a small increase in price from current price of 80 pesewas.
iv)What is the incidence of a tax of Ghs 0.6 imposed on the producer?

BIT Bank (in millions) Assets： Reserves $48 Loans $360 Liabilities： Deposits $340 Bank Capital $68 NAT Bank (in millions) Assets Reserves $48 Loans $360 Liabilities Deposits $400 Bank Capital $8 Assume that both BIT Bank and NAT Bank have the same net profit after tax of $8 million
a. Which bank (Bank BIT or Bank NAT) is riskier in case of loan depreciation at $60 million? Explain. Show your calculations to explain your answers.

If GDP is less than GDE, then

1. the country has a surplus on the current account
2. exports are less than imports
3. the country is consuming less than it is producing
4. the country is a net export

A student writes the following: “In the past 15 years, technological advancements have led to an increase in the production of computers. This causes the price of computers to fall. As a result, demand for computers have risen since more people can now afford to buy computers”. Is this analysis true or false? Explain.

What kind of competition is this firm faced with, perfect or imperfect?

Output Price Total revenue Average revenue Marginal revenue
0 20 0 20 20
1 20 20 20 20
2 20 40 20 20
3 20 60 20 20
4 20 80 20 20
5 20 100 20 20
6 20 120 20 20
7 20 140 20 20
8 20 160 20 20