Economics Answers

Discuss how the Kenyan public sector expended its revenue in the financial year (FY) 2015/2016, in accordance with the functional classification of public sector expenditure. Please refer to Table 5.8 of the Economic Survey 2019.

b) Computing percentages to (a) above, as given in Table 5.8, identify public sector functions that took most of the revenue, arranging in a decreasing order i.e., from the highest amount to the lowest amount, showing the percentages respectively.

Looking at the Economic Survey 2019, able 5.10. With specific reference to the financial year (FY) 2016/017

i) Compute the percentages on total external debt. Arrange in order of lending amounts and percentages, countries from the largest lender to the smallest lender? Show the percentage of each country on total external debt for 2016/2017.

ii) What is the order of lending of international institutions from the largest to the smallest lender. Show the percentage of each international institution on total external debt for 2016/2017.

Who are the actors in the foreign exchange market? 10marks

How would each of the following affect the Pakistan market supply curve for corn?

a. A new and improved crop rotation technique is discovered.

b. The price of fertilizer falls.

c. The government offers new tax breaks to farmers.

Below are the values of Inventory transactions relating to PESAKULANGA Business in the month of November 2019. Applying the FIFO Method of inventory accounting; Calculate the values in Dollars for Both Cost of goods sold and Closing inventory for the year ended

Food for thought 16:

(a) Differentiate between Stock Taking and Stock Control               

(b) From the following Table calculate the closing inventory value in TZS in trade that would be shown in the financial statements under a periodic method using FIFO system at the end of the trading period.                                   

Beginning Inventory were 10Units at a cost price of TZS 120 each​

Transaction Type

Number of Units

Unit Cost (TZS)

Purchased

60

1,350

Sold

40

Purchased

70

1,430

Sold

40

Sold

50

Purchased

60

1,510

given utility function u=x0.5y0.5 where px=12 birr py=4 birr and the income of the consumer is M=240 birr.

a)draw the budget line.

b)what happens to the original budget line if the budget falls by 25%

c)what happens to the original budget line if the price of x doubles

d)what happens to the original budget line if the price of y falls to 2 birr

Answer the question below based on the information given

. All data are in RM million

. Government expenditure function : 100

Investment function : 500

Consumption function : 200 + 0.6Yd

Tax function : 10 Export function : 0.2Y

Import function : 100

(i) Calculate the consumption and savings function after tax.

(ii) Calculate the national income equilibrium by using Injection = Leakage approach.

(iii)Calculate the national income equilibrium by using Aggregate Demand = Aggregate Supply.

(iv)Calculate the total consumption at the national income equilibrium.

Please assist, Thank you

A firm has the following revenue and cost functions:

           TR      =         120Q – 2Q²

           TC      =         200 +60 Q + Q²

Determine the level of output at which the firm maximizes its total profit

(d) Explain two reasons why a government may privatise an industry. [4] 

(e) Analyse how a successful airline industry can promote economic growth. [6] (f) Discuss whether the Indian government should increase the tax on airline fuel. [7] 

(g) Discuss whether more people will apply to be pilots for Indian airlines in the future. [7] 

Question 3: Suppose the inverse demand function for good X is given as P=100-2Q. Find

the price elasticity of demand when Q=40 units. What can you say about the type of the good

looking at the price elasticity of demand that you calculate in the first part?

The satisfaction gained by consuming x units of good 1 and y units of good 2 is measured by the utility function

U = 2x2 + 5y3

Currently an individual consumes 20 units of good 1 and 8 units of good 2.

(a) Find the marginal utility of good 1 and hence estimate the increase in satisfaction gained from consuming one more unit of good 1.

(b) Find the marginal utility of good 2 and hence estimate the increase in satisfaction gained from consuming one more unit of good 2