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Was money a better store of value in the United States in the 1950s than it was in the 1970s? Why or why not? In which period would you have been more willing to hold money?
Why were people in United States in the ninteenth century sometimes willing to he paid by check rather than with gold, even though they knew that there was a possibility that they check might bounce?
Discuss the principles of Pecking Order theory in respect to fundraising for capital investment.
- What is the purpose of an income statement for a retail business?
- Which statement format do you choose?
- Why did you choose this format?
- What are the benefits and challenges of your statement choice for each stakeholder group?
a. You are given the following information about the commodity and Money markets of a closed economy without government intervention.
The commodity market
Consumption function:
C = 50 + 2/5Y
Investment function:
I = 790 – 21r
The Money Market
Precautionary and Transactions demand for money
MDT = 1/6 Y
Speculative demand for money
MDS = 1200 -18r
Money supply
MS = 1250
Required i. Determine the equilibrium levels of income and interest rate for this economy. (5 Marks)ii. Using a well labelled diagram, illustrate the equilibrium condition in part (i) above. (5 marks)
college student has two options for meals: eating at the dining hall for $6 per meal, or eating a
Cup O’ Soup for $1.50 per meal. Her weekly food budget is $60.
a. Draw the budget constraint showing the trade-off between dining hall meals and Cups O’
Soup. Assuming that she spends equal amounts on both goods, draw an indifference curve
showing the optimum choice. Label the optimum as point A.
b. Suppose the price of a Cup O’ Soup now rises to $2. Using your diagram from part (a), show
the consequences of this change in price. Assume that our student now spends only 30 percent
of her income on dining hall meals. Label the new optimum as point B.
c. What happened to the quantity of Cups O’ Soup consumed as a result of this price change?
What does this result say about the income and substitution effects? Explain.
d. Use points A and B to draw a demand curve for Cup O’ Soup. What is this type of good
called?
XYZ Ltd. is considering the purchase of new machine. Two alternative machines (A & B) have been
suggested, each having initial cost of Rs. 10,00,000 and requiring Rs. 50,000 as additional working capital at
the end of 1st year. Net cash flows are expected to be as follows:
Year Machine A (in Rs.) Machine B (in Rs.)
1 1,00,000 3,00,000
2 4,00,000 6,00,000
3 4,00,000 3,00,000
4 4,00,000 5,00,000
5 3,00,000 2,00,000
The company has target return on capital of 10% and on this basis you are required to compare the
profitability of the machines and state which alternative you consider to be financially preferable.
what will happen to the demand for skilled labor if the price of unskilled labor increases?
A detailed lecture note on analysis of variance (ANOVA) along with regression
A lottery ticket pays off 300,000,000 pesos is made available for 10,000,000 tickets. Each ticket costs 50 pesos. Supposed the variable X gives the net winnings from playing the lottery. What is the expected gain for joining the lottery with only one ticket?
