Economics Answers

Use appropriate diagrams to illustrate the income and substitution effects of a price on the demand for an inferior good.

Sndi Inc. has following information
Sales Revenue $2,000,000
Cost of goods sold $1,100,000
Operating Expenses $800,000
Average Capital Invested $1,000,000

1. Compute the Firm's sales margin, Capital turnover and ROI?
2. If the sales and average Invested Capital remains the same Next year, to what level would the total expenses have to be changed so as to improve the Firm's ROI to 15%?

If a county's labor is paid a total of 6 billion, it's capital is paid a total of 2 billion, and profits are zero, what is the level of output?

Write down the shapes of ppc when MRS is increasing, decreasing and constant..

Q 7. In a manufacturing plant, workers use a specialized machine to produce belts. A new machine is invented that is laborsaving. With the new machine, the firm can use fewer workers and still produce the same number of belts as it did using the old machine. In the long run, both labor and capital (the machine) are variable. From what you know, what is the effect of this invention on the APL, MPL and returns to scale

9. Discuss the problems of measuring productivity in actual work situations. How might productivity
be measured for each of the following industries?
a. Education (e.g., elementary and secondary education, higher education—undergraduate
and graduate)
b. Government (e.g., the Social Security Office, the Internal Revenue Service)
c. Manufacturing (e.g., soap and toothpaste, computers, heavy machinery)
d. Finance and insurance (e.g., banks, insurance companies, brokerage houses)

Determination of equilibrium price & quantity (diagram & mathematical calculation)
Changes in demand and supply to changes in the market equilibrium

Perfect competition:
The difference between normal and supernormal profits
How profit and losses lead to entry and exit

Given : TC=Q2+2Q+2 and TR=8Q-3 then
A. calculate profit maximizing level of output
B. maximum profit

You take out a 30 year £200,000 mortgage loan with monthly payments and a 0.5% monthly interest rate. Fourteen years later you decide to sell your house and pay off the mortgage. What is the balance on the loan?

Which one from the given options is not a characteristic of the labor market? Explain with Reason.

A) The services that are rendered by a labor can only be rented.
B) In employment transactions compared to that of market for commodities Non- pecuniary factors loom larger.
C) In employment transactions, non-pecuniary factors are generally unimportant.
D) Several institutions and regulations does not exist in other markets but are applicable to employment relationships.