Economics Answers

How aggregate demand is determined in classical model?

Explain how a decrease in marginal propensity to consumer will affect the size of the autonomous expenditure multiplier. Other things being constant.

Below is a table showing the demand for Greebes and the supply of Greebes. Plot these
data on the axes provided. Label the demand curve "D," and label the supply curve "S." Then
answer the questions that follow.
Demand for and Supply of Greebes

Price
(S per Greebe) Quantity Demanded (millions of Greebes) Quantlty Supplied (millions of Greebes)
$.15 300 100
.20 250 150
.25 200 200
.30 150 250
.35 100 300

what items should be put on the agenda of a new round of trade talks (and who wants these on the agenda),
why, and
the problems likely to be met in the discussions (with those inside, rather than outside the meeting i.e. not with the protestors but the countries within the WTO).

Which of the following statements regarding economic growth is correct?

A] Real gross domestic product (GDP) measures the impact of economic growth on pollution and environmental degradation.
B] With the recent use of high-speed computers, economists are able to measure the size of the informal sector accurately.
[C An increase in real GDP per capita implies that income is more evenly distributed in the economy.
D] When measuring economic growth, changes in prices and in the population should be taken into account.

the form of an extra dividend to shareholders or embark on a share repurchase scheme. Current profits are R3.40 per share and their shares currently trade for R35. Their abbreviated balance sheet before paying out the dividend is as follows:

Equity 350 000 Bank/cash 130 000 Debt 120 000 Other assets 340 000 470 000 470 000 Evaluate each alternative(i.e. pay the dividend or repurchase the shares) by:Calculating the price earnings ratio.

Which best describes consumer surplus? a. The price consumers are willing to pay for a unit b. The cost of providing a unit c. The profits made by a firm. d. The difference between the price a consumer pays for an item and the price he/she is willing to pay for it.

2. The amount by which price exceeds the seller’s reservation price is called: a. Producer Surplus b. Profit c. Consumer Surplus d. Net Surplus

3. Which of the following is the best explanation of economic surplus? a. Excess supply b. Excess demand c. Excess demand and supply d. The aggregate of consumer surplus and producer surplus.

In the form of an extra dividend to shareholders or embark on a share repurchase scheme. Current profits are R3.40 per share and their shares currently trade for R35. Their abbreviated balance sheet before paying out the dividend is as follows:

Equity 350 000 Bank/cash 130 000 Debt 120 000 Other assets 340 000 470 000 470 000 Evaluate each alternative(i.e. pay the dividend or repurchase the shares) by:Calculating the number of shares in issue.

In City only taxicabs and privately owned automobiles are allowed to use
the highway between the airport and downtown. The market for taxicab
service is competitive. There is a special lane for taxicabs, so taxis are
always able to travel at 90 km per hour. The demand for trips by taxicabs
depends on the taxi fare P, the average speed of a trip by private automobile
on the highway E, and the price of gasoline G. The number of trips supplied
by taxicabs will depend on the taxi fare and the price of gasoline.

Solve for equilibrium taxi fare in a general case; that is, when you do
not know G and E. How the equilibrium taxi fare changes as G and
E change? Comment on your findings.

A reduction of subsidies by the government in the production of good x cause what?