Economics Answers

Identify the likely problems that can be encountered in the compilation of National Income Accountant in Nigeria. (SSCE)

Use the concept of the Elasticity of Demand to explain why Disney can charge up to 20% more during peak times.

I need to explain fully how and why the firms the product and cost curves are functionally related thank you

QUESTION. AD-AS Consider a theoretical framework where the short-run AS describes, as usual, a positive relationship between the price and output levels. The AD is obtained by combining the following equations:

C = c0 + c1(Y − T)
I = d0 − d2i
T = t0 + t1Y
L = f1Y − f2i
with G = G0 and M = M0.
Starting from a long run equilibrium allocation, assume that autonomous consumption
decreases, ∆c0 = x < 0

a) Represent graphically (AD-AS plot) the short run effect indicating if and how output
and price change

b) Moving from the starting long-run equilibrium to the short-run equilibrium, indicate if
and in which direction the following variables have changed: i interest rate, I invest-
ment, C consumption, T taxation, G public expenditure, w nominal wage

Suppose you are advising a small country like Bermuda on whether to print it's own money or to use money of its large neighbour such as U.S.A?
What are cost and benefits of national money ??
Does the relative political stability of 2 countries have any role in this decision ???

Farmers can plant either corn or soybeans in their fields. Suppose that a new technology for converting corn into liquid fuel increases the demand for corn. Which of the following will be most likely to happen?
A. The supply of corn will increase, shifting the supply curve to the right.
B. The supply of soybeans will increase, shifting the supply curve to the right.
C. The price of soybeans will decrease, shifting the supply curve to the left.
D. The supply of soybeans will decrease, shifting the supply curve to the left.

A firm faces the production function Q = 10L2K2. The wage rate is 2 and the rental rate of capital is 1. What are the optimal amounts of L and K if the firm’s objective is to produce Q = 25, 000?

If the fixed cost were $25 and the variable cost per unit were $ 2 and the demand function as follows: P=20-Q
(a) Get π in terms of Q and plot the graph of him .
(b) Find the value of Q in break even point.
(c) Find the production level which gives $ 31 as revenue.
(d) Find the maximum profit and value of Q where the maximum profit is achieved.

Thank You...

The consumer price index (CPI) can be used to measure inflation. There are potential problems with this process though that can result in inflation being overstated or understated. Sort each item below according to whether it would cause inflation to be overstated, understated, or would give an accurate representation of inflation.

ZZZ Company has $15,000 to invest. Management is trying to decide between two alternative uses for the funds as
follows. The company’s discount rate is 16%
Project A Project B
Investment required $15,000 $15,000
Single cash inflow at the end of 10 years $0 $60,000
Annual cash inflows $4,000 $0
Life of the project 10 years 10 years
Which alternative would the company choose and why?