Economics Answers

Distinguish between limited liability and joint several liabilities. What is the significance of these two terms in lending?

What does "goods are excluded from inventory" mean?

A person who is about to retire has accumulated $100,000 in a savings account. Suppose that the person withdraws $8,195.23 from the savings account at the end of each year for 20 years, at which time the account is totally depleted. What is the interest rate, based upon annual compounding?

2.1 Suppose the market model is described by the following demand and supply functions: Qd= 200-2P+ 4i and Qs= -200 + 3P where i =50 Answer the following questions: a) Calculate the equilibrium price (P) and quantity (Q) and indicate your answers on the graph. [03] b) If the market demand decreases by 50% what will be the new clearing price and quantity for this market? [03] c) Indicate the effect of the changes in (b) on a graph and explain what will happen to market price and quantity. [03]

Solve the following problems, showing all of your calculations .

Assume the following:

GDP (Y) = 5,000

• C (consumption)= 750 + 0.5(Y-T).
• I (investment)= 1500 – 50r, where r is the real rate of interest in percent.
• T (taxes)= 1,250
• G(government spending) = 1,125

1.    What are the equilibrium values of C, I and r?
2. A technical innovation increases investment to the function I = 2,000 - 50r. What are the new equilibrium values of C, I, and r?

Imagine that an aggressive neighboring country reduces the size of its military. Economic analysts state that the country should reduce further investment in the military. Is this a positive or normative statement? Why?

briefly explain how an increase in demand will have an effect on rent

A commercial company uses capital of 70 million UM., of which 50% represents the fixed capital and pays salaries of 25 million UM. The fixed capital is depreciated in 7 years. Production value is 70 million UM.

Determine the annual cost of production, the profit mass and the profit rate calculated on turnover.

Explain why the Marginal Revenue Product of Labour curve for a firm that competes for labour in the factor market is also the firm's demand curve for labour.

At a turnover of 200 million MU. and a profit rate calculated on turnover of 15%, if the rate of profit becomes 7.5% while maintaining the same turnover, determine how the profit and the cost of production change.