Economics Answers

The slope of the investment function underscores the fact that

if the marginal propensity to save is 3/4,then the marginal propensity to consume is
(1) 1
(2) 4
(3) 1/5
(4) 1/4

Construct a production possibility frontier to illustrate Tom's earnings potential between the two careers if initially, he was not working as a carpenter, then he worked one-week per month, then two-weeks per month, then three-weeks per month, finally four weeks per month (assuming only four weeks in a month)

Potatoes are used in the production of frozen french fries which are increasing in popularity in China as the number of fast food restaurants grow

The elasticity of supply of frozen french fries is liked to be more elastic then the elasticity of supply of fresh potatoes. Do you agree with it? Give your reasons

Your budget is such that if you spend your entire income on 2 goods x and y.. You can afford either 4 units of x and6 units of y or 12 units of x and 2 units of y.if you spent all your income on x, how many units of x you could buy?

State in each case below whether the transaction includes VAT .give a brief exaplanation for each answer.

1-purchase of a delivery truck from TATA ,a VAT vendor .
2-purchase of fuel from a VAT vendor.
3-pay employees monthly salaries.
4-sell goods worth R10 000 to receivable D.
5-purchase of a computer for business use from a non-VAT vendor.

Explain when and why the cost of an assets,such as the computer ,for initial measurement must exclude VAT.

Indicate why differentiation is made between current assets and non-current assents?

Given the following consumption function: C= 100+ 0.2y. If income is equal to R2000 consumption will be

Calculate GDP at factor given
Given NNP at market price=3200
NFIA =200
Depreciation =1000
Indirect tax=500
Subsidies=300