Economics Answers

Hypothetical drug-development program requires $200 million in out-of pocket
costs over a 10-year period during which no revenues are generated, and with
only a 5% probability of success. However, if the drug development is successful, it
is plausible to assume that it could generate a net income of $2 billion per year over
a 10-year period of exclusivity from years 11–20. The present value of this income
stream in year 10 is $12.3 billion (using a 10% cost of capital).
(a) Compute the expected return and standard deviation (over a 10-year period) of
this investment

Consider the continuous decline in oil price that has hit most of the oil producing economy across the globe, and members of Organization of Petroleum Exporting Countries (OPEC) will be having their meeting by 15th December 2017. As an economic expert, kindly advice OPEC on what needs to be done in order to reverse the continuous decrease in oil price

The President of Lisavia (a small country) wants to increase productivity in his country. He has recently become aware of an economic principle that suggests that as a nation's productivity rises, its income will rise and therefore its standard of living will also rise. You have just been appointed as the economic advisor for Lisavia. Discuss three economic policies you might advise the President to pursue in order for his country to achieve this increased standard of living.

Coca-Cola developed a vending machine that would sense the temperature and then
charge higher prices when it was hotter–a response to the increase in demand and the
Group
Assignment
Page 2 of 3
decrease in the elasticity of demand. Consumers found out about the new technology
and were outraged, causing Coca-Cola to shelve the idea.
2a) When does a firm have an opportunity to charge different prices to different
consumers?
2b) What Determines Price Elasticity of Demand for Coca-Cola? Explain and
provide graph illustration.

Consider the continuous decline in oil price that has hit most of the oil producing economy across the globe, and members of Organization of Petroleum Exporting Countries (OPEC) will be having their meeting by 15th December 2017. As an economic expert, kindly advice OPEC on what needs to be done in order to reverse the continuous decrease in oil price (Note: Support your answer with the required graph)?

1) Is it possible for a country to have, simultaneously, a current account deficit along with a balance of payments surplus? Explain your answer with reference to the significance and meaning of each of the BOP accounts. Be sure to discuss the possible implications for official international reserve flows (i.e. the reserve portion of the financial account).


2) Explain the interest parity condition and how it can be used to determine the equilibrium exchange rate. A full verbal and graphical discussion is needed.

what does the budget audit examine?

In a particular town there are 100 cars and 50 motorcycles. Each car owner has a demand curve for petrol given by: Qdc = 20 – 5p for p ≤ 4 and Qdc = 0 for p > 4. Each motorcycle owner has the following demand function for petrol: Qdm = 15 – 3p for p ≤ 5 and Qdm = 0 for p > 5. Prices are expressed as SR per gallon, and quantities as gallons per week.

The President of Lisavia (a small country) wants to increase productivity in his country. He has recently become aware of an economic principle that suggests that as a nation's productivity rises, its income will rise and therefore its standard of living will also rise. You have just been appointed as the economic advisor for Lisavia. Discuss three economic policies you might advise the President to pursue in order for his country to achieve this increased standard of living.

Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.

the sum of individual consumer demands for a given product
what is this call?