Economics Answers

Marginal propensity to consume (MPC) = 0.25, Investment (I) = 5500, Government
Spending (G) = 1200, Autonomous consumption (α) = 1500,
Net Exports (X-M) = 2,600
Y= C+ I + G + X-M
C= α + βY
Required;-
i) Calculate the equilibrium level of National Income. (3 marks)
ii) Calculate the equilibrium consumption and savings (4 marks)
iii) Compute a simple investment multiplier and interpret it

Identify five determinants of price elasticity of demand with each determinant explain how it increases or decreases elasticity

The preparation, effort and care that goes into a report should reflect its usage. Comment on this statement.

Which of the following will NOT cause a change in the demand for coffee (illustrated by a shift in the demand curve)
1. An increase in the price of coffee
2. A decrease in the price of milk, a complement
3. An increase in the number of people drinking coffee
4. An increase in the income of households

What does the board need to know about their responsibilities under the Corporations Act and any suggestions that you could make about the need for corporate structural change that might be required.

What are the relevant governance requirements?

What is required for the board to provide effective governance

What are the key components of internal control?

Explain the differences between internal and external auditing.

Who are the stakeholders with whom a business should consult and what is the value of consultation and the involvement of stakeholders