Economics Answers

Use the following quote from an article published by World Bank answer questions below
Before taxes and social spending, the income of the richest 10 percent in South Africa is more than 1000 times bigger than the poorest 10 percent. After taxes and social spending, this gap falls so that the income of the richest 10percent becomes 66times bigger than the poorest 10 percent..(World Bank)
A This is an example of
1monetary policy aimed to redistribute income
2monetary policy aimed to encourage economic growth
3fiscal policy aimed to redistribute income
4fiscal policy aimed to encourage economic growth
B The taxes referred to in the World Bank article satisfy which criterium of a good tax
1neutrality
2horizontal equity
3vertical equity
4administrative simplicity

Discuss whether a government should encourage an increase in savings

Analyse how a central bank might reduce household borrowing

20. The Company B has 6.6 million shares of common stock outstanding. The shares are currently selling at Rs.61.60. Book value of the share is Rs. 4.6. Company B also has two bonds issues outstanding. The first bond issue has a face value of 70.6 million. The coupon rate of 17.1% & sells for 95% of par.The second issue has a face value of 35.6 million & coupon rate of 7.1% & sell for 10.5% of par.The first issues matures in 21 years and second in 13 years.
Company B also Bank loan of Rs.80 million and the interest rate is 12%.
a) Find capital structure weights on book value basis.
b) What are the capital structure weights on market value basis? Which one is the best?

With aid of a graph, briefly explain of the increase in the income on the demand of the inferior goods?

Critically evaluate the economic imbalances that Latvia experienced and recommend the policy options that could have been adopted in order to manage each of them

With regards to coal shortages and municipal debts what forms of intervents do you think eskom can put in place in order to cover up for all the debt and continue operating? Incorporate relevant graphs in your answer

critically discuss elastic, inelastic, unitary conditions/forms of price elasticity of demand through the use of practical examples and graphs

Suppose The Information Below Characterizes An Economy: Employment (in Millions) Real GDP (in Billions) 1 200 2 700 3 1,100 4 1,400 5 1,650 6 1,850 7 2,000 8 2,100 9 2,170 10 2,200 Construct The Aggregate Production Function For This Economy. What Kind Of Returns Does This Economy Experience? How Do You Know? Assuming That Total Available Employment ...

Assume that the federal government passes an investment tax credit law that encourages firms to invest more. How would this change impact the market for loanable funds? What happens to the interest rate and the quantity of loanable funds at equilibrium. How would this affect overall investment in the economy (I in Y = C + I + G + NX)?