Economics Answers

1.The monopolist ------- price
a.Enjoys
b.Allows
c.Takes
d.Fixes

2.Change in input price, government policy, organizational change may lead to -----.
a.higher cost of demand for a firm
b.lower cost of production for a firm
c.higher cost of production for a firm
d.higher cost of sales for a firm

3.The point at which demand equate supply is known as -------
a.interaction point
b.intersection mpoint
c.equation point
d.equilibrium point

4.The following are factor inputs except -------
a.land
b.labour
c.capital
d.entreprenual

5.The following equation; Q = r - kP, depicts -------
a.supply function
b.demand function
c.demand curve
d.supply schedule

7.Which of the following instruments is used to inform the buyer how much is owed for the goods supplied?
(a)Order note
(b)Delivery note
(c)Receipt
(d)Invoice

8.Equity in business represents ______
(a)Creditor's interest
(b)Debtor's interest
(c)Employees' interest
(d)Ownership interest

9.Which of the following concepts is accounting equation based?
(a)Entity concept
(b)Accrual concept
(c)Cost concept
(d)Double-entry concept

10.The assumption that a business is not expected to be liquidated in the foreseeable future explains ____
(a)Entity concept
(b)Going concern concept
(c)Accrual concept
(d)Cost concept

assuming monopoly in the commodity market and perfect competition in the factor market derive the demand curve for a variable factor when there are several variable factors.

Is there any common denominator that we can use to study the market such as market for wheat, market for public utilities, market for jewelry, and market for crude oil?

Suppose that the public’s taste changes in such a way that leisure comes to be more desirable than commodities. How would you expect such a change to affect output, employment, and the real wage in the classical model?

What are the main sources of information when considering financing and investing?

Suppose there are two groups, Group W and Group P:
 Group W: people in group W like to take financial risks, and therefore have a high tolerance for holding foreign assets
 Group P: people in group P do not like to take financial risks, and therefore do not hold any foreign assets
Now suppose there is an increase in inequality: Wealth shifts away from Group P and toward Group W, so that a larger share of wealth is held by Group W.
What effect would this increase in inequality have on the real exchange rate? On gross exports? Defend your answers.

a.A small business owner is deciding whether to purchase new machinery for her business. She would charge the cost of the machine to her credit card, which charges 22.9 percent interest. It is a “pass- through” business; what she earns in her business is her personal income. Money she spends on the business is money she doesn’t have available to spend on herself and her family. Which inflation rate is relevant in estimating her real rate of interest? Why?
b. The investment equation is

What is the effect of rising uncertainty on stock prices? Use a derivative to show the effect.
What is the effect of rising earnings on stock prices? Use a derivative to show the effect.

Discuss the scope of economics including the traditional division of economics