Economics Answers

Find an example of the distinction between microeconomics and macroeconomics in today’s headlines

Explain the classifications of market structure in detail.

It has been estimated that for high income earners in the uk the income elasticity of demand for coffee capsules is 1.2 and for normal instant coffee is 0.5. Explain what the data means and account for the difference in the two estimates.

In a supply and demand diagram, draw the shift of the demand curve for hamburgers due to the following events. In each case, show the effect on equilibrium price and quantity. a) The price of tacos increases. Assume that tacos are a substitute for hamburgers. b) All hamburger sellers raise the price of soda. Assume that soda is a complement of hamburgers. c) Income falls. Assume that hamburgers are a normal good. d) Income falls. Assume that hamburgers are an inferior good. e) Hot dog stands cut the price of hot dogs. Assume that hot dogs are a substitute for hamburgers

Are following C(consumption); I investment; G( Government); Net imports or not a component of national account from expenditure side. Brief explanation why.
A) Vancouver stock exchange sales in January are $2 billion:
B) Norbert buys “as is” a used Harley Davidson motorcycle from his cousin Ella.
C) Toyota Camry increase is inventory holdin Toyota Canada increases its inventory holding off instrumentation panels, ( IPs) produced in Kitchener

An industrial setup can earn additional AED 7500 per year by installing a new production machine. If the applicable interest rate is 10% per year, how much should the company have over a 5 years to break even ?


A student spend $400, $700 and $ 600 in years 2, 4, and 7 on purchasing necessary stationery. The total worth of these spends in year 10 at an interest rate of 5% will be equivalent to:



How much money would be available in year 10 if $15000 is deposited each year in years 3 through 10 at an interest rate of 10% per year?

Suppose that the economy of Stormwind has the following​ features:
The level of private saving is ​$150.
The level of investment expenditure is ​$150.
The level of exports is ​$100.
The level of imports is ​$150.
If​ Stormwind's economy is in​ equilibrium, the level of public saving would be equal to ​$
nothing. ​(Round your response to the nearest​ dollar.)
The level of public saving shows that the government in Stormwind has a budget
▼
deficit
surplus
.
If the level of government purchases is ​$150 in​ Stormwind, the level of taxes must be ​$
nothing. ​(Round your response to the nearest​ dollar.)

The population of the world in 2003 was 6.314 billion. It grew between 1975 and 2003 at an annual rate of 1.6%. Assume that it continues to grow at this rate.
a. Compute the doubling time.
b. Estimate the world population in 2048 and 2093 (assuming all other things remain unchanged).

PS Note: Am in particular after the solutions to part e and f


The following equations describe a small open economy.
[Figures are in millions of dollars; interest rate (i) is in percent]. Assume that the price level is fixed.

Goods Market Money Market
C = 250 + 0.8YD L = 0.25Y – 62.5i
YD = Y + TR – T Ms/P = 250
T = 100 + 0.25Y
I = 300 – 50i
G = 350; TR = 150

Goods market equilibrium condition: Y = C + I + G + X-M
Money market equilibrium condition: L = Ms/P

a) If you were your Reserve Bank advisor, what would you recommend the Reserve Bank to do to keep the interest rate constant?
b) Show the impact of the above d) and e) on the IS-LM framework. Would the IS curve now relatively flatter or steeper and why?

What is price elasticity of demand? Mention the determinants of price elasticity of
demand. Suppose, the cross elasticity of demand for beef with respect to chicken is E=
+1.5. (i) If price of chicken is increased by 40%, what will happen to the demand for beef?
(ii) What kind of relationship exists between beef and chicken in this case?