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If R1000 and the average fixed cost is R16 when 25 units of output are produced, then the average variable cost at that level of output is...
1. R16
2. R24
3. R40
4. Impossible to determine.
1. R16
2. R24
3. R40
4. Impossible to determine.
In the short run, an increase in the price of imported goods will cause
A) an increase in the interest rate.
B) a reduction in the price level
C) an increase in output.
D) all of the above
E) none of the above
Can you explain your answer as well?
A) an increase in the interest rate.
B) a reduction in the price level
C) an increase in output.
D) all of the above
E) none of the above
Can you explain your answer as well?
1)American capitalism is not pure capitalism; it has become a "mixed" economy, largely because of defects or failures in the market system that Adam Smith did not foresee. What are these defects or failures that Smith didn't foresee? Discuss.
2) Income inequality in most European countries is smaller than it is in the US. Given all of the approaches and strategies available to the US (and to Europe) for improving income distribution, why do you think this is so?
2) Income inequality in most European countries is smaller than it is in the US. Given all of the approaches and strategies available to the US (and to Europe) for improving income distribution, why do you think this is so?
Suppose, in a two sector model comprising consumers and firms, that the individuals receive the following payments for their provision of goods and services: wages K60000, interest K30000, rent K10000 and profits k8000. Consumption spending is K101000, planned investment expenditure is K20000 and actual investment expenditure is K7000.
a) What is the equilibrium output? b) What is the level of saving in this economy; clearly show how it’s calculated. c) What is the relationship of saving and investment? d) What is a leakage from the circular flow of income? e) Why is investment spending viewed as an injection into the circular flow of income? 10 marks
a) What is the equilibrium output? b) What is the level of saving in this economy; clearly show how it’s calculated. c) What is the relationship of saving and investment? d) What is a leakage from the circular flow of income? e) Why is investment spending viewed as an injection into the circular flow of income? 10 marks
Zambia and Malawi are able to produce maize and fish using equivalent resources as shown below: 10 Marks
Zambia Malawi maize fish maize fish 10 0 50 0 8 2 40 5 6 4 30 10 4 6 20 15 2 8 10 20 0 10 0 25
a. Which country has an absolute advantage in the production of maize? b. Which country has an absolute advantage in the production of fish? c. Which country has a comparative advantage in the production of maize? d. Which country has a comparative advantage in the production of fish? e. Explain the reason for international trade based on comparative advantage?
Zambia Malawi maize fish maize fish 10 0 50 0 8 2 40 5 6 4 30 10 4 6 20 15 2 8 10 20 0 10 0 25
a. Which country has an absolute advantage in the production of maize? b. Which country has an absolute advantage in the production of fish? c. Which country has a comparative advantage in the production of maize? d. Which country has a comparative advantage in the production of fish? e. Explain the reason for international trade based on comparative advantage?
We were assigned the running in place project and one of the questions our teacher asked was “Why shouldn’t I just buy the products from other businesses instead of paying households?”
The trend line for sales of postcards ( in million) is estimated using annual data from 1980 t0 2004.
The result is st = 10 (1.05)^t.
(a) what is the interpretation of the "10" and the term in parentheses ?
(b) Forecast sales of postcards in 2008.
The result is st = 10 (1.05)^t.
(a) what is the interpretation of the "10" and the term in parentheses ?
(b) Forecast sales of postcards in 2008.
The trend for sales of cottage cheese is estimated using data from the first quarter of 1972 to the fourth quarter of 2004. The result is as shown below with the f-value in parentheses:
St = 12.5 + 0.14t (3.28)
a. What is the interpretation of the coefficient of t ? Is the coefficient statistically significant at the 95 percent level ? Explain
b. Forecast the demand for cottage cheese in the third quarter of 2006.
St = 12.5 + 0.14t (3.28)
a. What is the interpretation of the coefficient of t ? Is the coefficient statistically significant at the 95 percent level ? Explain
b. Forecast the demand for cottage cheese in the third quarter of 2006.
The production function for Baroda Foods Ltd. is
Q = 20K 0.5 L 0.5
The initial prices of the input are W = 20 and r = 30.
Under the labor contract with a national union, at least the current employment level of 300 workers must be maintained through the next production period. ( However, more workers can be hired if necessary).
( a) in the previous production period, the firm produced 4,899 units of output. Assuming efficient production, what was the rate of capital input ?
( b) Because of the national recession, the desired level of output for the next production period is only 4,000 units. what is the optimal rate of capital input ?
Q = 20K 0.5 L 0.5
The initial prices of the input are W = 20 and r = 30.
Under the labor contract with a national union, at least the current employment level of 300 workers must be maintained through the next production period. ( However, more workers can be hired if necessary).
( a) in the previous production period, the firm produced 4,899 units of output. Assuming efficient production, what was the rate of capital input ?
( b) Because of the national recession, the desired level of output for the next production period is only 4,000 units. what is the optimal rate of capital input ?
Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast. They would each benefit if lighthouses were built along the coast where they fish. The marginal cost of building each additional light house is K100.00. The marginal benefit to Zach of each additional lighthouse is 90-Q, and the marginal benefit to Jacob is 40-Q, where Q equals the number of lighthouses.
TASK
a. Explain why we might not expect to find the efficient number of lighthouses along the coast.
b. (Showing all calculations) what is the efficient number of lighthouses? What would be the net benefits to Zach and Jacob if the efficient number were provided?
TASK
a. Explain why we might not expect to find the efficient number of lighthouses along the coast.
b. (Showing all calculations) what is the efficient number of lighthouses? What would be the net benefits to Zach and Jacob if the efficient number were provided?
