Economics Answers

compare the contrast between the ramsey model for the central planner and the solow model for economic growth(your answer should include the assumption,important equations phase daigram and its interpretation

With regards to coal shortages what forms of intervention do you think eskom can put in place to cover up all the debts and continue operating

In the labour market for carpenters, the current market clearing wage rate is R800 per day. With the
aid of a diagram, discuss the welfare effects of government intervention in the form of legislation that
sets the minimum wage rate for a carpenter at R1000 per day.

1. Explain the difference between an expansionary and contractionary fiscal policy. When, why, and how are they used? Which one is more effective than the other?

Illustrate and explain using diagrams how a single seller within the market can maintain an inefficient allocation of resources;

1. The raw scores of 20 students of Whitesands School who took part in an examination in Economics are given below. The pass marks is
40%
38 28 70 43
39 20 64 66
12 46 52 53
20 34 48 69
18 20 64 34
(a) What is the mean score of the students’ marks?
(b) How many students passed the examination?
© What percentage of the students failed the examination?
(d) What is the range of the scores?
(e) How many students scored below the mean score?

In which sector in the Papua New Guinea economy is oligopoly prevalent?

The behavior of buyers is represented by

Use AD-SAS-LRAS graphs to show the separate effects of each event on Fiji’s real GDP and the price level, starting from a position of long-run (full employment) equilibrium

Sheen Ltd manufactures garden tools and has decided to expand operations. The new
operations are expected to increase EBIT from the current level of $500 000 to $1 million p.a.
Sheen has a capital structure that utilises bonds, ordinary equity and preference shares. The
$500 000 of issued bonds pay 6% p.a.. Preference shares pay an annual fixed dividend of $70
000. The company has 1 000 000 ordinary shares that are trading at $5.1 per share. The
Australian corporate tax rate is 30%. Most of the shareholders of Sheen live outside Australia
and cannot fully utilise dividend imputation credits.
Sheen needs to raise $700 000 to fund the expansion. Assuming the company can issue new
shares at the current market price, what is the impact on EPS new shares are issued to fund the
centre? If new debt can be raised at a 9% interest rate, what is the impact on EPS of using debt
rather than a new equity issue?