Economics Answers

What is gdp

SDRs (IMF Special Drawing Rights) , Explain what their function is and why they were introduced. Analyse the strengths and the weaknesses of the argument that SDRs could be used as a world reserve currency in place of the US $.

QUESTION 2
There is talk of a possible IMF intervention in Nigeria. When does the IMF intervene in a country? Why is Nigeria in this situation today? Considering previous interventions, such as Greece, what measures would the IMF probably ask Nigeria to take? What impact would these measures have on the Nigerian economy? Would you recommend they ask for IMF support? Why/Why not?

Maximizing profits from cost function of C=50 + 4Q^2 with price of $40

Why is price mechanism said to be an institution of exchange?

You are considering an investment in a 40-year security. The security will pay RM25 a year
at the end of each of the first three years. The security will then pay RM30 a year at the end
of each of the next 20 years. The nominal interest rate is assumed to be 8 percent, and the
current price (present value) of the security is RM360.39. Given this information, what is
the equal annual payment to be received from Year 24 through Year 40 (i.e., for 17 years)?

1- You have just been promoted as the new assistant branch manager of a local-based
international bank. The branch manager, who is an expatriate, has asked you a question on
the different types of interest rate quotations. The question he asked is which rate should
the bank advertise on monthly-compounded loans - the nominal annual percentage rate or
the effective annual percentage rate? And which rate should the bank advertise on
quarterly-compounded savings accounts? Please explain to the branch manager which
quotation would attract consumers and why?

a) Hugh has opened a retirement fund account which pays 7 percent interest and requires
$5,000 annual deposits. Hugh will retire in 15 years and expects 10 years of retirement life.
What is the maximum annual retirement benefit Hugh can get during his retirement years?

b) To expand its operation, Sunbeam Ltd. has applied to the Lion Bank for a 3-year, $3,500,000
loan. Prepare a loan amortization table assuming 10 percent rate of interest.

There are three main mechanisms by which a country’s production possibility frontier is expanded. Name the three mechanisms and for each one illustrate what happened in Britain during the ‘industrial revolution’.

The Index of Sustainable Economic Welfare (ISEW) have been proposed as an alternative to a country’s Gross National Product (GNP) or Gross Domestic Product (GDP). What is the effect of using that measure on calculations of economic growth over the last 20 years?

In 2015, it was revealed that Volkswagen (VW) had installed software on its diesel cars in order to circumvent US emissions tests. Carefully, outline what this scandal involved, and explain why the actions of the VW management were unethical. Discuss what issues may have caused this behavior to occur, and what you would do to prevent this from happening in the future. Evaluate the impact of this scandal on the value of VW, and explain why the value of the firm may change by more than the cost of the recall to correct the issue.