Economics Answers

A recent newspaper circular advertised the following special on tires: “Buy three, get the fourth tire for free—limit one free tire per customer.” If a consumer has $500 to spend on tires and other goods and each tire usually sells for $50, how does this deal impact the consumer’s opportunity set?

The average 15-year-old purchases 12 CDs and 15 cheese pizzas in a typical year. If cheese pizzas are inferior goods, would the average 15-year-old be indifferent between receiving a $30 gift certificate at a local music store and $30 in cash? Explain

Dewey is considering starting his own business as a photographer. Dewey is currently a tax attorney, making $150,000 per year and working 60 hours per week. Dewey estimates that it will take 6 hours to service each studio client and 18 hours for each bridal client He is limiting his work hours to the 60 hours he previously worked each week. He charges $500 per studio client and $5000 per bridal client. He spent $5,000 of his savings that had been earning 4% interest in order to purchase his camera and lighting equipment. He borrowed $10,000 from the bank to convert two rooms in his home to an office and studio space. He would also like you to determine what his annual revenue will be in addition to calculating the following:

1. What is Dewey's accounting profit?
2. Suppose Dewey could have used his talents to run a similar kind of business instead. If he values his entrepreneurial skill at $10,000 annually, find Dewey's total implicit costs.
3. What was Dewey's economic profit last year?

"A number of politicians, policy advocates and employees demanded that minimum wage rates should increase in Fiji." Use PICs as an example to discuss the nominal and real effect of an increase in minimum wage rates.

Explain why certain firms practice price discrimination?

New Millennium Trading in its first month of operations has appointed you as the Accounts Clerk. You
are required to enter the following transactions in the books of New Millennium using the double entry
system and close / balance all the accounts as at the period ended May 31, 2017.
You are also required to prepare a Trial Balance as at May 31, 2017.
May 1 Started business with $15,000 capital in cash
May 2 Paid $14,000 of the cash into the business bank account
May 3 Bought goods on credit from J. Paul for $592
May 4 Bought a motor van for $3,000 paying by cheque
May 5 Bought goods, paying by cheque $2,100
May 9 Sold goods to E. Samuel for $323 and received a cheque
May 11 Paid for stationery $45 cash
May 14 Cash sales $490
May 18 Goods returned by us to J. Paul, $72
May 19 Bought goods on credit from J. Paul, $67
May 21 Paid for advertising, $60, by cheque
May 30 Paid wages by cheque $540 and motor vehicle fuel $110 by cash.

Isabel lives in a country that allows individuals to own factories and stores
She publicly writes and speaks about this type of system hurting more
individuals than it helps. Isabel is acting as
O
O
A a capitalist
B. a laborer
O
C. an investor
O
D. an advocate

it has always been free to enter the Botanical Gardens in San Francisco golden gate park. but last year the parks department initiated a 7$ entry fee for non residents. they expected to earn 650,000$ in annual revenue. instead, revenue will actually be no more than 400,000$. so now they are considering lowering the entrance fee. if the goal is to maximize revenue, should the parks department lower the entrance fee or should they engage an advertising agency to promote the park ? explain your choice be sure to include the law of demand and elasticity in your answer

Educated and trained workers tend to be more productive in working environment, explain what productivity means

Case studies Availability and Consequences of Credit Purchases Mr.Krishna is willing to buy a Motor Lorry of R 1000000 from the Mayur Motor Company by paying cash of Rs 2,00,000. He want to pay the balance through instalments of Rs 1.60.000 rachat an interest of 5% on 31 December every year for 5 years Krishna wants to know about the different financial services provided by the Mayur Motor Company. As u Finance Manager of Mayur Motor Company, you are required to suggest Mr.

Krishna Regarding the types of Credit Purchase be can uvail from your concern

What will be the total interest borne by Mr. Krishna for the credit purchase made by him?

What consequences will the purchaser face

li the non-payment of installment Advise