Economics Answers

A true market economy would allow its citizens to buy from the company that sells the good at the lowest price, regardless of where that company is located. How would a communist country deal with the problem of its consumers demanding foreign imports? Does this result in a better situation for the consumers than a scenario with free trade based on comparative advantage, why or why not?

Is the neoclassical, free-market theory necessarily incompatible with dependence theory? How might these two approaches work together?

explain whether each of the following government activities is motivated by a concern about equity or efficiency . in this case of efficiency, discuss the type of market failure involved
a. providing subsidies to padi farmers
b. regulating electricity rates
c. evaluating mergers of malaysian banks
d. giving free health care services
e. providing national defense
f. improsing fines on firms that pollute

Explain why changes in consumption are unpredictable if consumer obey the permanent income hypothesis and have rational expectation

What effects will each of the following have on the demand for small automobiles such as smart car?
A- small automobiles become more fashionable.
B- the piece of large automobiles rises ( the price of small automobiles renaming same).
C- income decline and small automobiles are an inferior goods.
D- consumers anticipate that the price of small automobiles will greatly come down in the near feature.
E- the price of gasoline substantially drops.

An industry structure describes the number and size of participants (buyers and Sellers), technology, and the ease of entry and exist of firms. When the number of sellers is many, the industry is said to be competitive and hence a single seller is said to operate under condition of perfect competition. Suppose that McDonald Restaurant offers (Good X, Burger) and operates in a competitive market and uses Tomatoes as its main input. What would happen to the supply of Good X in each of the following situations. if the price of cheese increases.

10 beef animals will start in the feedlot at an average of 350 kg . They will be fed to a slaughter mass of 550kg on average . The present ADG is 0.80kg and this will be improved by 20%. Weaners have already experienced total cost of 16 000 rands when they get introduced into feedlot . Total cost per day in the feedlot are 500 rands . The total income per finished animal sold will be 75 rands per kilogram. Calculate the expected profit from your beef animal according to the improved ADG.

1. Do you think that inflation imposes a net cost to the economy after considering the gains and loss? If so, which type of cost? Discuss each scenario below.

a) (1 mark) Nobu gets paid more frequently and thus has to make more trips to the banks down the road, when inflation is expected to be high.
b) (1 mark) Nobu gets reimbursed by RMIT for his work-related expenses. However, sometimes it takes longer time to reimburse him (quite often in reality!). When inflation is expected to be high, he is less willing to travel for his job.
c) (1 mark) Responding to unexpectedly high inflation, the manager of the Sofitel Hotel must reprint and resend expensive coloured brochures correcting the price of the accommodation in this season

A bottle of wine costs $8 and a quiche costs $5. Lily is planning to spend all of her income, choosing a consumption bundle whereby she would receive marginal utility worth $10 from the last bottle of wine and marginal utility worth $4 from the last quiche. In order to get more utility out of her given resources, Lily could

the government of Bassaland is looking for new revenue sources. It is considering imposing an excise tax on two goods: palm wine and diapers. If the price elasticity of demand for the goods are -0.47 and -1.89 respectively, which good should it tax if the goal is to raise revenue? If the government wants to tax only one good, which good should it tax if the goal is to discourage consumption? Explain your answer with the help of diagram.