Economics Answers

Outline the three options to determine which depreciation method to choose for non-current assets.

Suppose Peter buys Good X and Good Y only. The price of Good X is $1 per unit and the price of Good Y is $2 per unit. Peter has the weekly income of $1000. Suppose the utility function of Peter is U = 3XY and the slope of his indifference curve is –Y/X where X and Y are the quantity of Good X and Good Y in a bundle respectively.
a. What is the utility level of Bundle A with 200 units of Good X and 200 units of Good Y?
Show your workings. [5 marks]
b. Bundle B has 100 units of Good X and 300 units of Good Y. Is Bundle A preferred to Bundle
B? Explain your answer. [5 marks]
c. Is Bundle A affordable to Peter? Clearly explain your answer. [5 marks]
d. Solve for the utility maximizing bundle. Show each of your steps clearly. [10 marks]

Using the concept of Consumer Behaviour, discuss geometrically and algebraically, the income and substitution effects of quantity demanded to change in price. Aticulate the economic intuition that emanates from the derivation of the geometric and algebraic function.

How do I get the profit at the profit maximizing point from a graph?

It has been mentioned that Claims received for loss of plant in fire is not cash flow. But isn't this an extraordinary Investing Activity Cash Inflow ? Also kindly explain how to treat 'Claim /amount received for loss of plant in fire' in Cash Flow Statement ?

How does Card-Krueger Study satisfy the natural experiment conditions?

In which case we can say that a monopsonistic employer is discriminating among its workers?

Assume a labor market with a non-discriminating monopsony. Assume the wage is 5$ when
monopsony employs 100 workers. Assume wage increase to 5,1$ when 1 more worker is employed. What is the marginal labor cost of the last worker?

How is exploitation defined by the neoclassical school in economics?

When rate of depreciation is given as 20% , why is rate of depreciation calculated above.
understand that rate of depreciation is fixed i.e. 20% for all the years.
need clarification on the calculations