Economics Answers

a) What are the factors considered when choosing between Euromarkets and or domestic markets?

b) Explain the various differences between forward and future contracts.

c) Discuss three factors that influence exchange rates.

If leakages are less than injections, equilibrium output will be

Ad Venture is a company that produces advertising video clips. Their supply curve is Qs=-2W+6P, where
W (in 10s) is the hourly wage that the company pays their workers and P (in 1000s) is the ongoing market
price for a 1-minute commercial.
a) If the wage is $35, how much should the market price be so that Ad Venture produces 8 videos?
b) At the price you have determined at point a., how does the number of videos supplied change if the
wage decreases to $30? Show this situation in your graph.

For the case of more developed economy in south Africa with relevance to economic data on current trends discus the possible implications post 2020 of acfta on the following variables. 1. National consumption within south Africa. 2. Investment by local stake holders. 3.net expect

Critically comment: Shareholders own companies. Therefore, companies should be run in their interests. When this is done, companies’ profits are maximized, which in turn maximized their social contributions.

Critically comment: When you give the rich a bigger slice of the pie, the slices of the others my become smaller in the short run, but the poor will enjoy bigger slices in absolute terms in the long run, because the pie will get bigger.

Critically comment: Activist fiscal policy of the type promoted by supporters of Employment of Last Resort(ELR) programs is highly destabilizing since it interferes directly with the operation of layout markets. Indeed, by altering wages and employment levels, these policies undermine the efficiency of free markets and generate inflationary pressures. In addition, ELR programs impose a fiscal cost to society since these programs must be financed through higher taxes.

Critically comment: Ontario’s minimum hourly wage was raised form $11.60 to $14 in January 2018 (an increase of slightly over 20 percent). As a result, unemployment must have increased, aggregate demand and income must have fallen, while inflation must have risen.

Critically comment: Orthodox economists consider that labour demand is a decreasing function of the real wage rate. Therefore, a decrease in real wages must result into an increase in overall aggregate output.

Banana Republic, the currency drain ratio is 0.45 of deposits and the reserve ratio is 0.05.
The country's neighbour, the Kingdom of Coconut, has a quantity of money of C$ 100 billion
(newly created money), the currency drain ratio is 40% of deposits and the reserve ratio is 10%
-calculate money multipier in banana Republic use increase of $100 000 as money base, how much money will be created?
-calculate the money base in the Kingdom of Coconut