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Discuss any 5 attributes of continuous markets.
In the United States, 2020 is an election year. The current President, Donald Trump, has stated that he cannot say whether he will accept the results from the upcoming election, in which he is a candidate.
a) From a game theory perspective, why is it to his advantage to state this, assuming that the other candidates will follow the regular ethics of the elections? (15 points)
b) What if you do not assume that the other candidates will follow the regular election ethics? How would this affect US democracy? (15 points)
1. The Canadian government is considering whether to spend 200 million dollars on new hospitals or new highways. 4 Marks Total
a. Is the government faced with a trade-off? Explain. 2 Marks
Yes it’s a trade off because a trade off is a
Yes the government is faced with a trade off because
b. If the government uses the funds to build highways, what did they give-up? What is the opportunity costs for the new highways? 2 Marks
9. Consider the following events: Scientists reveal that eating oranges decreases the risk of diabetes, and at the same time, farmers use a new fertilizer that makes orange trees produce more oranges. Illustrate and explain what effect these changes have on the equilibrium price and quantity of oranges.
1. Alicia has $60. She can choose to buy a new pair of jeans for $60, or a new pair of boots for $60. 10 Marks Total
a. Which of the 10 economic concepts is Alicia dealing with? Explain. 2 Marks
Alicia is dealing with the concept of people facing trade-offs.
b. If she chose to buy the boots because that would make her happy, is she being purposeful in her behaviour? Explain. 2 Marks
c. What is her money cost for the boots? 2 Marks
d. According to the textbook, what is “opportunity costs”? 2 Marks
e. What is Alicia’s opportunity cost in getting the boots? 2 Marks
The Jamaican government administers two programs that affect the market for cigarettes. Advertisements and labeling requirements which are aimed at making the public aware of the dangers of cigarettes. At the same time, the Ministry of Agriculture limits the amount of land that can be devoted to tobacco production. Are these two programs useful in the goal of reducing cigarette consumption?
Transfer payment can be described as
[1] The transfer of income by the government from surplus units to deficit units.
[2] The transfer of income by the financial institutions from surplus units to deficit units.
[3] The transfer of income by the government from the wealthy to the poor.
[4] The transfer of income by the firms from the wealthy to the poor.
A company is not happy with its results from last year and is struggling to pay its bills. They want to improve their results for next year.
Give the company tips on how to do this. Answer the question in a detailed and nuanced way, using economic concepts.
Maria makes and sells exclusive scented candles. Each scented candle uses half a litre of stearin. The stearin costs SEK 100 per litre and the fragrance costs SEK 10 per candle. She then sells the candles for SEK 200 each, excluding VAT. Maria pays SEK 30,000 a month for rent and other costs.
a) Calculate the result if Maria makes and sells 4 600 candles a year.
b) Calculate the break-even point for Maria's candle production.
c) The company's current volume is 4 600 candles, calculate the margin of safety.
d) How many candles does Maria have to produce and sell in order to make a profit of SEK 300 000 per year?
Lisa Eriksson is a sole trader and runs a shop selling porcelain garden pots. When she started three years ago, she bought SEK 400,000 worth of inventory. She expects to use the inventory for a total of 8 years. The rent for the premises is SEK 7000 per month and the operating costs for electricity, offices, etc. are about SEK 3000 per month. This year she expects to have a purchase of goods of 800 000 SEK. She values the stock at the beginning of the year at SEK 100 000 and at the end of the year the stock could be worth SEK 200 000. The year's interest costs amount to SEK 20 000. She estimates other costs at SEK 80 000. Sales for the year are estimated at SEK 1 800 000.
a) What will be the result for the year?
b) What will the result be enough for?
