Economics Answers

Identify and explain five methods of encouraging ethical behaviour in an organisation.

1. The ATO has the power to make legally binding tax determinations. TRUE OR FALSE?

2. Part of the ATO’s mandate is to help people understand their rights and managing noncompliance with the law. TRUE OR FALSE?

3. Income is only assessable once it is physically received by the taxpayer. TRUE OR FALSE?

4. There are three methods of calculating income - Cash or receipts basis; Credit or statement basis; Accruals or earnings basis. TRUE OR FALSE?

5. Where a taxpayer becomes a resident for tax purposes during an income year, the Medicare Levy is charged only on taxable income derived while an Australian resident. TRUE OR FALSE?

6. Assessable income consists of ordinary income, special income and statutory income. TRUE OR FALSE?

A storm destroys half the banana crop. Is this event more likely to hurt banana farmers if the demand for bananas is very elastic or very inelastic?

Apple outsources production of iPhones, iPads and other electronic devices to Taiwanese contract manufacturer, Foxconn, with 800,000 workers at factories in Shenzhen, Chengdu, and other locations in China. Faced with increased competition for labor, Foxconn has raised wages and increased benefits for its workers. In April 2012, Samsung sued Apple for violating various Samsung patents to produce mobile phones. a) Using a suitable diagram, explain how Apple should adjust its production and price if Foxconn raises its prices for contract manufacturing? b) Suppose that Apple must pay Samsung a royalty on each mobile device that it produces. How should Apple adjust its production and price in response to the royalty? c) How would you change your answer in (b) if Apple must pay a lump sum in damages rather than a royalty per unit produced?

Suppose that Omar’s marginal utility for cups of coffee is constant at 3.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 11 for the first doughnut he eats, 10 for the second he eats, 9 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee?

The FE curve depicts all combinations of the nominal exchange rate and GDP that guarantee an equilibrium on the FE market.

It is known that quantity demanded increases by two units for each $1 increases in price. At a price of $5, quantity demanded is ten units.
a. What will be the quantity demanded if price is zero
b. Write an equation for quantity demanded as a function of price
C. Write an equation that expresses price as a function of quantity
d. Write an equation for total revenue.

What are the main differences in the methods of game theory and experimental economics? Which method is better suited to analyze strategic behavior?

The table shows a bank balance sheet. The desired ratio on the deposits is 5 %. There is no currency drain. What is the quantity of loans and the quantity of total deposit when the bank has no excess reverses.

reverses at the Fed= 25 checkabledeposits=105
cash in vault=10
securities= 60 saving deposits=95
loans= 105

Hi! I have a question
I'm currently studying for economics o level and I was doing some past papers

In one, the question was "In 2011, the US government declared that the country must increase the manufacture of fuel from crops such as corn that have previously only been used for food. What is likely to happen in the market for corn?"
The options were
A) a movement along the demand curve for corn
B) a movement along the supply curve for corn
C) a shift to the left in the demand curve for corn
D) a shift to the right in the demand curve for corn

naturally, knowing that movements along the curve were only caused by price factors, I picked D... however, the answer was B... can you explain why?