Economics Answers

1. Brexit is a recent debatable issue in the international economic order. Whether Britain should opt for soft Brexit or hard Brexit is a point of contention for politicians. In the due course, some commentators in the international economic order claim that UK may stick to the “WTO option” in its EU exit process. How do you think will the “WTO option” ease UK’s exit process from the EU?
2. In March 2018, in Rwanda, Kigali, African leaders came up with an agreement to establish continental regional trade area in Africa. On the other hand, majority of states in Africa are members of the WTO. Therefore, how does the Regional Free Trade Area give favorable advantage in trade for African countries without violating WTO law? How may a WTO member state engage in the continental free trade agreement while giving favorable advantage only for African countries without evading their WTO commitment?

With relevant data explain how a firm maximises profits

Explain when the President and Congress would use a contractionary fiscal policy and an expansionary fiscal policy what the overall result could/would be.

Explain when the FED would use a contractionary monetary policy and an expansionary monetary policy, and what the overall result would/could be.

What Economic systems/mechanisms or policies are needed to enhance the already existing business confidence of a country & positive growth outlook to yield tangible FDI & measurable economic growth?

Think about an item that you purchase on a regular basis. Then, create your own individual demand schedule. List five prices and the quantity you would demand of the item at each price. Be sure to provide a description of the item as well as an explanation of why you would demand the respective number of items at each price.

Net returns after subtracting total costs from total revenue

John has a utility function
U(B,Z)=AB^(1/α) Z^(1/β), where A, α and β are constants, B is burritos, and Z is pizzas. If the price of burritos, Pb is 10 and the price of pizzas, Pz, is N$5, and Y is N$1790, what is John’s optimal bundle

6.1 State ANY FIVE (5) distinguishing characteristics of an oligopoly market structure. (5 marks)
6.2 Briefly discuss the shortcomings of the kinked demand curve model of the oligopoly market structure. (5 marks)
6.3 With the aid of fully labeled diagrams, explain how a perfectly competitive firm adjusts to earning only normal profits in the long run from a position of economic profit/loss in the short run. (10 marks)

3.1 With the aid of clearly labeled diagrams, explain the difference between a change in quantity demanded and a change in demand. (10 marks)
3.2 Use a fully labeled diagram of the market demand curve and market supply curve to illustrate each of the situations required. For each case, show CLEARLY on the diagram the original and the new equilibrium positions and the shift of the relevant curve. Use arrows on the diagram to indicate the direction of any change in equilibrium price and equilibrium quantity.
3.2.1 In the market for Smart LED TV sets, what happens when the cost of a digital colour generator (an input
in the manufacturing process) increases, ceteris paribus? (5 marks)
3.2.2 In the market for Samsung Tablets, what will happen if the price of Apple iPads rises, ceteris paribus? (5 marks)