Economics Answers

If the Demand function is P=10-3q than what will be the total revenue at q=3

Calculate the real wage(W/P) if the value of the markup, u=0.1

Given the demand function Q_d = 40-2p and the supply function 2P-Q = 20. Assume the government impose at a tax of t per unit on quantity supplied and the producer adjust the supply function to include the tax.

a.      Find the tax rate which will maximize the tax revenue?

b.     Find the maximum revenue which can be obtained from taxation?

Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved.

A) regulating cable TV prices

B) providing some poor people with vouchers that can be used to buy food

C) prohibiting smoking in public places

D) breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies

E) imposing higher personal income tax rates on people with higher incomes

F) instituting laws against driving while intoxicated

Using examples, explain why cost–benefit analysis is central to the decision making process in the allocation of public goods

In a closed economy, where the households save 0.1% of their income and the only tax is 15% tax on income , what will be the result of a rise in government spending of £200000?

A car is purchased on installment. The buyer makes a 200,000 down payment and owes a balance of 300,000 to be paid in 4 years. Find the car’s cash value if money is worth 7% compounded semiannually.

The government of a poor developing country fears that a political upheaval will occur unless

the growth rate is at least 6 percent per annum. The ICOR and the saving rate are projected to be

v = 5.0 and s = 15 percent, respectively.

a. Show that 6 percent growth cannot be achieved under these circumstances. (1 Mark)

b. With the saving rate as given, what ICOR would be required to achieve the 6 percent growth

target? (2 Marks)

c. What happens to the question (a) and (b) if population growth and depreciations in Harrod

Model is 𝒏 = 𝜹 = 𝟎. 𝟎𝟐?

At an income of 100,000 a consumer spent 90 000 on consumer goods.when income rose to 200,000 the consumer spent 160 000 on consumer goods what is the MPC

Where

C=300+0.2Y

I=550

G=800

X=400

M=100+0.4Y

T=0.1Y

Use the above information to answer the following questions

1) if C=300+0.2Yinterpret the meaning of the value 300

2)state the values of MPT,MPC and MPS on disposable income and MPM

3)calculate MPC and MPS on national income

4)find the level of national income in the economy

5) calculate net exports and interpret

6) if investment declines by 15% ,what will be the change in National income