Economics Answers

Employment and Social Development Canada (ESDC) reported that the Canada mean

unemployment insurance benefit was $573 per week (Government of Canada, 2020). A

researcher in the state of Manitoba anticipated that sample data would show evidence that mean

weekly unemployment insurance benefit in Manitoba was below the national average.

a) Develop appropriate hypotheses such that rejection of H 0 will support the researcher’s

contention.

b) For a sample of 100 individuals, the sample mean weekly unemployment insurance

benefit was $566 with a sample standard deviation of $80. What is the p-value?

c) At α = 0.05, what is your conclusion?

d) Repeat the preceding hypothesis test using the critical value approach.

Consider the following hypothesis test:

H 0 : μ ≤ 13

H a : μ > 13

A sample of 26 provided a sample mean x̄ = 15 and a sample standard deviation s = 5.32.

a) Compute the value of the test statistic.

b) Use the t distribution table to compute a range for the p-value.

c) At α = 0.01, what is your conclusion?

d) What is the rejection rule using the critical value? What is your conclusion?

Consider the following hypothesis test:

H 0 : μ = 16

H a : μ ≠ 16

A sample of 50 provided a sample mean of 15.15. The population standard deviation is 3.

a) Compute the value of the test statistic.

b) What is the p-value?

c) Write the rejection rule using the p-value. Using α = 0.05, what is your conclusion?

d) Write the rejection rule using the critical value. What is your conclusion?

Consider the following hypothesis test:

H 0 : μ ≥ 21

H a : μ < 21

A sample of 50 provided a sample mean of 20.4. The population standard deviation is 2.

a) Compute the value of the test statistic.

b) What is the p-value?

c) Using α = 0.05, what is your conclusion?

d) Write the rejection rule using the critical value. What is your conclusion?

If a duopolist has a linear demand curve of the form Q=400-P, assuming each firm has total cost of TC= 3000+100Q. Calculate the profit maximizing price-quantity combinations using the following four oligopoly pricing models listed below demonstrating that:

a) Under the Cournot model, both firms will earn the same level of profit and determine industry profit and explain why this would be the case.

b) Under the cartel model, each firm earns a higher profit than Cournot

c) under the Quasi-competitive model,the firm will make a loss equivalent to fixed costs.

d) Under the Stackelberg's model,the leader will earn more than twice the profit of the follower and that total industry profits will be lower than both Cournot and Cartel models. Explain why this would be the case.

a. Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a success.

b. A Monopolist producing and supplying cooking gas to Mombasa city faces the demand function.

Q = 8800 – 20P. Its cost function is given by TC = 20Q + 0.05Q2.

i. Determine the quantity of cooking gas she will produce and the price she will charge to maximize profits and determine her profit.

ii. Explain how her profits she will affected if regulators forced her to operate like a perfectly competitive firm.

iii. Illustrate and compute dead-weight loss and lost consumer surplus associated with her Monopoly operations.

Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a success.

at this price buyers want to purchase 40,000 burgers less than the 60,000 hamburgers producers are willing to offer graph the market surplus occurs explain the market surplus among the seller

The following are taken from the accounting records of MNO Partnership.

December 31, 2023

Mario, Capital

₱58,960

Nancy, Capital

₱63,200

Olga, Capital

₱64,890

The partnership generated net income of ₱75,400 in 2024. According to the partnership contract,the profit and loss sharing ratios are as follows: Mario (25%), Nancy (37.5%), and Olga (37.5%)

The following were transactions with the partners during the year: 

• Mario made an additional contribution of ₱7,640. 

• Nancy withdrew ₱5,000 from the business. 

• Olga contributed ₱12,000 but withdrew ₱5,430

Prepare the partnership’s Statement of Changes in Equity.

The following are taken from the accounting records of MNO Partnership.

December 31, 2023

Mario, Capital

₱58,960

Nancy, Capital

₱63,200

Olga, Capital

₱64,890

The partnership generated net income of ₱75,400 in 2024. According to the partnership contract,the profit and loss sharing ratios are as follows: Mario (25%), Nancy (37.5%), and Olga (37.5%)

The following were transactions with the partners during the year: 

• Mario made an additional contribution of ₱7,640. 

• Nancy withdrew ₱5,000 from the business. 

• Olga contributed ₱12,000 but withdrew ₱5,430

Prepare the partnership’s Statement of Changes in Equity.