Economics Answers

Describe the main instruments of fiscal policy that are available to government.

Mr. Ali has a job as a pharmacist in Shaheen chemist earning PKR-30,000 per year, and he is deciding whether to take another job at Walt chemist as the manager of for PKR-40,000 per year or to purchase a franchise of Watson chemist that generate revenue of PKR-200,000 per year. To purchase Watson chemist Ali would have to use PKR-20,000 savings and borrow another PKR- 80,000 at an interest rate of 10 percent per year. The running expenses of new pharmacy would be PKR-80,000 for supplies, PKR-40,000 for labor, PKR-10,000 for rent, and PKR-5,000 for utilities. Assuming zero tax and repayment of principal loan after three years, answer following questions. a) What would be business and economic profit of Jones in case he purchase Watson chemist? b) If there will be a new pharmacy opens up in close vicinity after three years, what would be economic profit of the Watson chemist in three years? c) What theory of profit will apply on the three years earning of Watson chemist?

If the corporate tax rate were to decrease, from a purely WACC perspective, what would a business want to do?

lonewolf ltd is the sole manufacturer and supplier of solar panels in the country. as a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units of his product as he wants at that price. is this correct? motivate your answer

You went shopping a month ago, racking charges of $2,000 to your credit card along
the way. Then the credit card statement comes, and it says your minimum monthly
payment is only $40. Suppose you only pay the minimum payment of $40 every month.
If the stated interest rate is 24%/year, compounded monthly, how long does it take for
you to pay off your credit card debt? For simplicity, assume the first payment is due
immediately, and your credit card company starts charging you interest after the first
day of the first payment.

How might the official employment statistic of STATIN be a misleading picture of the overall health economy?

Two individuals are involve in a collective business, each year Mr.A received 60 % of the profit while B receive 35% of remaining. The leftover profit is allocate for charity. The annual revenue of the business is $500,000 while the operating cost is $-175000 for inputs (including labor and capital), $-70,000 for rent, and 15% of rent as utilities. By profession Mr. A is an engineer and can earn $7,000 per month by working in automobile industry. Similarly, Mr.B can earn $5000 per annum by working in a nearby school. Assuming Zero income and sale tax, answer following questions.

a) What would be business and economic profit of Mr. A? b) Which shareholder is economically well-off and Why? c) What would be their total revenue in 15 years if the growth rate of the business is 2.3% per annum?

The total business value of KFC in 1990 was $ 106,940. The management is expecting growth of 1.3 percent. How long KFC business would take to reach at $154,287 worth.

Mr. Ali has a job as a pharmacist in Shaheen chemist earning PKR-30,000 per year, and he is deciding whether to take another job at Walt chemist as the manager of for PKR-40,000 per year or to purchase a franchise of Watson chemist that generate revenue of PKR-200,000 per year. To purchase Watson chemist Ali would have to use PKR-20,000 savings and borrow another PKR- 80,000 at an interest rate of 10 percent per year. The running expenses of new pharmacy would be PKR-80,000 for supplies, PKR-40,000 for labor, PKR-10,000 for rent, and PKR-5,000 for utilities. Assuming zero tax and repayment of principal loan after three years, answer following questions. a) What would be business and economic profit of Jones in case he purchase Watson chemist? b) If there will be a new pharmacy opens up in close vicinity after three years, what would be economic profit of the Watson chemist in three years? c) What theory of profit will apply on the three years earning of Watson chemist?

Question 1
Two individuals are involve in a collective business, each year Mr.A received 60 % of the profit while B
receive 35% of remaining. The leftover profit is allocate for charity. The annual revenue of the business
is $500,000 while the operating cost is $-175000 for inputs (including labor and capital), $-70,000 for rent,
and 15% of rent as utilities. By profession Mr. A is an engineer and can earn $7,000 per month by working
in automobile industry. Similarly, Mr.B can earn $5000 per annum by working in a nearby school. Assuming
Zero income and sale tax, answer following questions.
a) What would be business and economic profit of Mr. A?
b) Which shareholder is economically well-off and Why?
c) What would be their total revenue in 15 years if the growth rate of the business is 2.3% per
annum?
Question 2
The total business value of KFC in 1990 was $ 106,940. The management is expecting growth of 1.3 percent.
How long KFC business would take to reach at $154,287 worth