Economics Answers

Draw the graph facing an oligopoly market and briefly explain why it's shape is like that.

A. Which of the following is likely to shift the consumption schedule downwards?

1. Expectations of a fall in interest rates
2. Consumer prices are expected to fall
3. Currently less stock of durable goods in the possession of consumers
4. The expectation of a future rise in the consumer price index

B. Which of the following statement is correct about the introduction of taxation in the Keynesian model?

1. It increases the value of the multiplier
2. It shift the aggregate expenditure curve upwards
3. It increases net exports
4. It swivels the aggregate expenditure curve downwards

A. An increase in government spending in the Keynesian model leads to...

1. Demand that is greater than supply
2. Demand that is lesser than supply
3. Demand that equals supply
4. Decrease in production

B. In the Keynesian model, suppose a depreciation of the South African rand against the US dollar leads to an increase in exports. What will happen to the aggregate spending curve if imports remain unchanged?

1. It will stay the same
2. It will shift upwards
3. It will shift downwards
4. The slope becomes flatter

A. Equilibrium level of income is that at which

1. The budget is balanced
2. The balance of payment is in equilibrium
3. The economy is at full employment level of income
4. There is no tendency of national income to change

B. In the simple Keynesian model with no government and external sector, if an increase in investment expenditure of 150 results in a final increase in income of 600, it follows that the marginal propensity to consume must be

1. 0,2
2. 0,75
3. 0,25
4. 0,8

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $800,000 per month. The variable cost per thousand board feet is $155.50. The price charged will be determined by p = $600 − (0.05)D per 1,000 board feet.
For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at the optimal volume.

Which one of the following alternatives represents the correct amount of accumulated depreciation on office equipment which was sold on 30 september 2019?

What are the major objectives of macroeconomics

Initially, suppose Arcadia uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce rye, while Felicidad uses 3 million hours of labor per month to produce jeans and 1 million hours per month to produce rye. Consequently, Arcadia produces 8 million pairs of jeans and 48 million bushels of rye, and Felicidad produces 15 million pairs of jeans and 20 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
Arcadia's opportunity cost of producing 1 pair of jeans is of rye, and Felicidad's opportunity cost of producing 1 pair of jeans is of rye. Therefore, has a comparative advantage in the production of jeans, and has a comparative advantage in the production of rye.

What type of firm is a cartel?

Economists say that firms maximise profit by producing at a level of output where marginal cost is equal to marginal revenue. The owner of a firm respond, "That's a lot of nonsense. I do not even know what marginal revenue and marginal cost mean. How can I be doing something I don't even know about?" How would you react to this response?