Economics Answers

If a country helps other country by means of goods, i understand. If a country helps other country by means of money, as the money is not valid in another country. How does the transaction happen?

draw a graph showing a subsidy placed on a good with PED higher than PES.

at break even point

In some cases, employment subsidies are provided to firms in order to encourage employment by these firms. What would the impact of these kind of subsidies be on the labor market?

This problem asks you to consider a company refining crude oil into gasoline. The company hires
workers to process an input (crude oil) into an output (gasoline). You should assume both the (output)
market for gasoline and the labor market for workers are perfectly competitive, and that the firm must
pay the equilibrium wage set in the labor market and charge the equilibrium price for gas set in the
market for gas.

how demand of factors of production differs from the demand of good and services

The following are proper explanations for why the Supply Curve has a positive slope, EXCEPT:

Question options:

As price per unit increases, then profit per unit will also increase for sure, motivating more production.


The supply curve has a positive slope due to increasing marginal cost of production.


As price per unit increases, it will motivate the least efficient producers to enter the market.


As production increases, the producer will be forced to charge a higher price to cover the higher marginal cost of production for the extra units produced.

Institutions and Economic Behavior

What three institutions influence economics the most? Explain how each influences economics and provide examples of each.

If the supply equation is given as Qs = -200+10P, the price elasticity of supply between R40 and R50, calculated using the arc elasticity of demand is