Economics Answers

Big Blue Granite (BBG) needs to purchase a new saw for creating their top quality countertops. Saw A costs $345,000 with $6,500 of annual maintenance costs for the first year that will increase by 7.0% each year for the 7-year life of the saw. Saw B costs $210,000 with $15,000 of annual maintenance costs for the first year that will increase by 12.0% each year for the 4-year life of the saw. Which saw should BBG choose? What is the annualized cost of this choice? Assume a discount rate of 9.5%, and ignore all taxes.

Tim's opportunity cost of producing 1 bushel of rye isbushels of corn, whereas Alyssa's opportunity cost of producing 1 bushel of rye isbushels of corn. Because Tim has a opportunity cost of producing rye than Alyssa, has a comparative advantage in the production of rye, and has a comparative advantage in the production of corn.

How to fing government expenditure from budget deficit

. Which of the following statements is/are correct regarding unemployment in the Keynesian and the AD-AS models?

a. In the production function, all the inputs are assumed to be fixed. b. The slope of the production function increases as the level of employment decreases. c. An increase in the real production always implies that unemployment rate will decline.

[1] b [2] a. [3] b and c. [4] a and b. [5] none of the above statements

4. Among the four economics shocks listed below, you must comment on each shock by stating which shock is the most preferred and the least preferred from the point of views of the economic policy advisors. If unclear (ie, cannot clearly say whether more or less preferred), state unclear and explain why. To answer, fill the cells marked with? in the following table.

Hints: Start from the situation where the economy is at potential output and then think about the shocks. No need to draw the AD-AS figure. Also, no need to comment on the policy reaction to each shock (that is beyond the coverage of this assignment).

Positive supply shock. Comment ?
Negative supply shock Comment ?
Positive demand shock. Comment ?
Negative demand shock. Comment ?

Derive the indirect utility function form the given direct utility function. Use Roy’s identity to construct demand functions for the two goods x1 and x2. Are these same as demand functions derived from the direct utility function?

Assume that the market price of a 5kg bag of rice is R80, the gorvenment has announced that, a 5kg bag of rice can be sold less than R100. With aid of well labelled diagram, explain what the effect the above decision will have in the market for rice

How will a business determine the correct lodgement requirements for its particular circumstances?

It asking HOW a business determines the correct lodgement requirements. This involves what method of reporting would be applicable, lodgement dates and payment of BAS

You have been asked to provide an accurate and up-to-date profit and loss report on work in process for a particular job. What data might you draw on, what reports might you need to access and how would you ensure that the information you provide is error free and comprehensive?

SPECIFICALLY LIST THE DATA THAT IS REQUIRED AND EXPLAIN HOW THE DATA IS ERROR FREE AND COMPREHENSIVE

Write a procedure on how to record financial data in a computerized system