Economics Answers

A community in Northern Namibia produces only two goods, TVs and CDs. With the aid of properly labelled production possibilities curves illustrate each of the following (putting TVs on the vertical axis) : 2.1.1 A shift in production from CDs (services) TVs (goods) , 2.1.2 An increase in the potential output of the community due to a greater availability of the factors of production

1.8 Which one of the following is NOT true of a monopolist? (a) A monopolist is protected from competition, (b) A monopolist can earn economic profit, (c) A monopolist is a price maker, (d) A monopolist can sell as much as he/she wants to at any price

1.5 If the cross elasticity of demand between tablets and smart phones is 2.0 this implies that these goods are ; (a) Luxuries, (b) Complements, (c) Necessities, (d) Substitutes. Which one is True?

If there is an increase in the price of red meat, a substitute in production for milk, then (a) Supply of milk will increase
(b) Demand for milk will decrease
(c) Supply of milk will decrease
(d) There will be a movement along the supply curve for milk

A monopolistic competitor is like a perfectly competitive firm in the long run because:

A community in Northern Namibia produces only two goods, TVs AND CDs. With the aid of properly labelled production possibilities curves illustrate each of the following (putting TVs on the vertical axis). a) A shift in production from CDs (services) towards TVs (goods). b) An increase in the potential output of the community due to a greater availability of the factors of production. Please draw diagram Please provide references

using well labelled diagrams, explain how the equilibrium quantity of apples will change as a result of the following:

2.2.1 a change in the wages of farm workers from R150 per day to R200 per day
2.2.2 a decrease in the price of fertilizers and concurrent increase in the demand for apple juice

Suppose the banking system as a whole has $6800 billion in deposits and $45 billion in reserves, with a reserve ratio of 10 percent. What happens to the stock of money if the Central Bank of The Bahamas increases reserve requirements by changing the reserve ratio to 5 percent?

A silver mine can be purchased for $1,500,000. On the basis of estimated production, an annual net income of $389,000 is foreseen for the next 15 years. After 15 years, the mine will probably be worthless. What annual IRR is in prospect?

The vertical distance between the total cost and the total variable cost curves:
a) Decreases as output increases.
b) Increases as output increases.
c) Is equal to average fixed cost.
d) Is equal to total fixed cost.