Economics Answers

We can expect that the amount of money that a bank creates will decrease when…

a.

the South African Reserve Bank increases the repo rate.

b.

more bank clients choose to deposit their funds at the bank.

c.

the bank borrows from the South African Reserve Bank.

d.

the bank's clients choose to hold a smaller part of their money in the form of cash.

When supply shifts to the right and demand stays constant, the equilibrium price

A. decreases and the equilibrium quantity decreases.

B. decreases and the equilibrium quantity increases.

C. increases and the equilibrium quantity decreases.

D. increases and the equilibrium quantity increases.

Consider a firm with the following production function 𝑸 = 𝟓𝟎𝟎𝟎𝑳 − 𝟐𝑳 𝟐 

a. How many units of labor are needed at that point.

b. Obtain the function of marginal product of labor (𝑀𝑅𝐿).

c. Graph the production function and the 𝑀𝑅𝐿.

One way of aiding low-income families is to increase the minimum wage. An alternative is to provide a direct grant of non-labor income. Compare the impact of these two options on work incentives.

In a competitive market, supply and demand decrease simultaneously. The effect on equilibrium quantity is

If the demand for motor vehicles decreases due to a drop in consumer income, and if, at the same time, increases in factor prices cause the supply of motor vehicles to decrease, the price of motor vehicles will

A technological advancement for Good A will shift the _________ curve of Good A to the _________, leading to a ___________in the equilibrium price.

A firm operates in aperfectly competitive market . The market price of it's product is 4 birr and the total cost function is given by TC=1/3Q^3-5Q^2+20Q+50,Where TC is the total cost and Q is the level of output

A. What level of output should the firm produce to maximize it's profit ?

B. Determine the level of profit at equilibrium ?

C. What minimum price is required by the firm to stay in the market ?

identify one personal and one social consequence of unemployment in your country or society. What roles, do you believe the government should play to reduce negative consequences? 

Why did the classical economists fail to explain the Great Depression? What is the Keynesian explanation for the same? Answer it in about 250 words.