Economics Answers

The activity statement allows a business to calculate obligations, allowing a single payment or refund for each reporting/ payment period, across the taxes.

For example, if in a quarterly reporting/ payment period, a business had:

a GST credit of $15,000
a PAYG instalment liability of $6,000
a PAYG withholding liability of $1,500, and
an FBT liability of $1,000
Would the business need to make any payments?

2)

On the 1st of July 2012 an organisation purchased a vehicle for company use. The price was $60,000 and has a useful life of six years. It was depreciated using the straight line method and the vehicle was traded in for its book value on the 30th of June 2016. Complete the calculations and provide the details in this table.

Ledger account

Accumulated deprecation

Book value

Date

Details

Debit

Credit

Balance

Debit

Credit

Balance

1/7/12

Purchase

30/6/13

Depr’n

30/6/14

Depr’n

30/6/15

Depr’n

30/6/16

Trade in

1)Use the retail inventory method to calculate the value of ending inventory for an organisation which has:

An opening inventory at cost of $850,000 and a retail value of $2,100,000.Purchases for the year totalled at cost $650,000 and the retail value of the purchases is $1,000,000.Sales for the year at retail price totalled $2,650,000.Mark-ups of $80,000 and markdowns of $35,000 during the year.

Demonstrate the procedures that should be followed to record financial data in a computerised system. You will need to negotiate a time and place for the demonstration with your assessor.

1)Describe a process that could be used for collating, coding, and classifying accounts data in preparation for processing.

2)Why might it be necessary to consolidate and/or convert financial data to allow it to be analysed in accordance with organisational requirements

3)Explain how data might be consolidated or converted to allow it to be analysed.

May I ask how does a low unemployment affect the other macroeconomic objectives?
Also, may I ask what are the demand and supply-side suggestions for a low inflation rate?

Assuming that x is a normal good and y is an inferior good, decompose the total effect (a) of a reduction in the price of a normal good (b) of an increase in the price of y into the income and substitution effect components? What will happen in each case if the income effect is too large?

Many African countries are struggling with the level of unemployment especially youth unemployment. In Zambia the government has come up with various initiatives to combat youth unemployment such as the youth fund.
a) Define and calculate the unemployment rate for Zambia given the information below:
Number of inhabitants: 10 million
Labour-force participation: 62 %
Unemployed persons: 455'000
b) Using the information in (a) calculate the participation rate and define it.
c) List and briefly explain any four types of unemployment.

There are various methods in literature that countries use in calculating national income. Assume a simple economy that produces only two goods; maize and fish. Using 2015 as the base year.

Goods 2015 2016 2017 2018
Maize Quantities 700 900 1000 950
Fish Quantities 500 1000 900 750
Price of Maize K65 K70 K80 K90
Price of Fish K50 K70 K90 K120
Nominal GDP
Real GDP


a) Fill in the missing cells in the above table. Clearly show your work.

b) Find the growth rate of nominal GDP for 2016, 2017 and 2018.
c) Find the growth rate of real GDP (using 2015 K) for 2016, 2017 and 2018.

d) Compute inflation using GDP deflator (using 2015 K) for 2016, 2017, and 2018.
e) What are the major differences between the GDP deflator and the CPI?

Briefly explain the difference between an Australian Government budget deficit and a budget surplus