Economics Answers

For the current year, a firm reported net income from operations of $20,000 on its income statement and an increase of $30,000 in cash from operations on the statement of cash flows. Explain some likely reasons for the greater increase in cash from operations than net income from operations

on january 1 2011, Maya co issued 60,000 additional shares. This brought the total number of shares in issue to 660,000. In the year to 30 April 2011, the profit before tax was 847,400 and the tax charge was 47,800. what was earning per share for the year to 30 april 2011

27. Some politicians in the US would like to see steps taken towards reducing the country's twin deficit, i.e. a budget and trade deficit. To this end, two famous economists propose two different policies: (i) a fiscal policy focus on decreasing the budget deficit directly, (ii) a monetary policy focus on increasing the real money supply, i.e. a decrease in the price level due to the combined effect of the nominal money supply remaining unchanged and productivity gains in the economy. Explain the market for loanable funds (LF) in an open economy, the market for foreign currency exchange (FCE) and the LF-FCE transmission mechanism that links the LF and FCE markets. Use the corresponding models and the interest rate and exchange rate effects to evaluate the respective effects of the two proposed policies in view of the US politicians' goal of reducing the country's twin deficit and make well-argued policy recommendations.

I'm a little bit confused. Isn't the short run defined as the period during which factor prices are fixed? Then how come that wages (a factor of production) will change in the short run and cause shifts of the SRAS curve?

Demand function is Q=1100-40P. Determine the quantity that results in maximum revenue

. Big Bird Air is legally obligated to purchase 50 jet engine from ERUS at the end of two years at a price of $ 200000 per engine. Confident that it is protected from opportunism with this contract, Big Bird begins making aircraft bodies designed to fit ERUS’s engines. Due to unforeseen events in the aerospace industry, in the second year of the contract ERUS is in the brink of bankruptcy. It tells Big Bird that unless it increase the engine price to $300000, it will go bankrupt.

a. What is the first thing should the manager of Big Bird Air do?
b. How could this problem have been avoided?
c. Did the manager of Big Bird use the wrong method of acquiring inputs?

. A certain town in Kerala obtains all of its electricity from one company, South Electric. Although the company is a monopoly, it is owned by the citizens of the town, all of whom split the profits equally at the end of each year. The CEO of the company claims that because all of the profits will be given back to the citizens, it makes economic sense to charge a monopoly price for electricity. Do you agree with the CEO’s argument? What are the social costs of monopoly power?

Under what conditions do the following production functions exhibit decreasing, constant or increasing returns to scale? a.

Star inc has 500,000 $1 par common shares outstanding, currently valued at $25. if the company issues a 15% stock dividend, what will be the effect of the equity section of the balance sheet? What about a 40% stock dividend?

Monthly salary of executives in a call centre depends upon years of experience, educational qualification (diploma/degree) and time of work (morning/evening/night). Formulate the regression equation for the above scenario. Explain ho