Search & Filtering
Mention and explain the type of policy that can be implemented to combat cost push inflation
1. Gore Company makes products for sporting events. The following data are for the year ended December 31:
Materials inventory, January 1……………………………. $ 45,000
Materials inventory, December 31………………..…… 65,000
Materials purchases………………………………………….….175,000
Direct labor………………………………………………… 225,000
Work in process inventory, January 1……………….... 30,000
Work in process inventory, December 31……………... 40,000
Manufacturing overhead………………………………… 130,000
Finished goods inventory, January 1………………….. 80,000
Finished goods inventory, December 31……………..….. 140,000
Prepare a Cost of Goods Manufactured Statement and compute the cost of goods sold.
Assess the possible measures which the government might use to persuade passengers to travel by rail rather than other forms of transport. In your answer you should consider any disadvantages of these measures as well as the positive benefits and should include a discussion of taxes, subsidies, price controls or changing the cost of other forms of transport relative to rail travel
Use a diagram to illustrate and explain the effect of a credit rating downgrade in South Africa on the dollar-rand exchange rate.
The Mixing Department of Crown Cement has the following cost and production data for
the month of June. [10]
Costs:
Work in process, June 1
Direct materials: 100% complete
Conversion costs: 20% Complete
$90,000
60,000
Cost of work in process, June 1 150,000
Costs incurred during production in June
Direct materials
Conversion costs
$600,000
280,000
Costs incurred in April 880,000
Units transferred put totaled 15,000. Ending work in process was 1200that are 100%
complete as to material and 40% complete as to conversion costs.
Instructions
a. Compute the equivalent units of production for (1) materials and (2)
conversion costs for the month of June. [4]
b. Compute the unit costs for the month. [3]
c. Determine the costs to be assigned to the units transferred out and in ending
work in process.
Make up an example of a monthly demand schedule for pizza, and graph
the implied demand curve. Give an example of something that would shift
this demand curve, and briefly explain your reasoning. Would a change in the price of pizza
shift this demand curve
Consider a couple’s decision about how many children to have. Assume that over
a lifetime couple has 20,000 hours of time to either work or raise children. The
wage is $10 per hour. Raising a child takes 20,000 hour time.
(a) Draw the budget constraint showing the trade- off between lifetime
consumption and number of children. (Ignore the fact that children come only
in whole numbers.) Show indifference curves and optimum choice.
(b) Suppose the wages increases to $12 per hour. Show the budget constraint shifts.
Can you please explain me when wages will increase then what to do...
Briefly explain any two determinants of investment spending
According to the case study, the fuel price increase is one of the main factors resulting in an increase in inflation. Use an AD-AS diagram to illustrate and explain the type of inflation implied by the fuel price increase. (
Q.3
Consider public policy aimed at smoking.
a. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20 percent, by how much should it increase the price?
b. If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or five years from now?
c. Studies also find that teenagers have a higher price elasticity of demand than do adults. Why might this be true?
