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In the tiny island nation of Bongo, the nation’s wealth is broken down as follows: 50 percent is cash in checking and savings accounts, 25 percent is housing, and 25 percent is stock holdings. Last year, Bongo experienced an inflation rate of 25 percent, and housing prices and stock prices each increased by 10 percent. Explain what happened to real wealth in Bongo last year, and how this change in real wealth helps explain the downward slope of the aggregate demand curve.
Mary has been working as a marketing manager and earning an annual salary of RM80,000. Using her own fixed deposits of RM100,000 from a local bank which earns her 0.3% interest per month, she decides to quit her job and open her own restaurant in Johor Bahru. Every year she pays RM24,000 for equipment leasing; RM60,000 for shop rental; and her average monthly utilities bill is RM1,000. She spends RM48,000 yearly to purchase fresh raw materials for her restaurant. Mary hires 4 workers who are paid RM2,000 each month. Her business runs very well with an average monthly sales of RM33,000. Calculate the following values on a yearly basis:
(i) Implicit cost and explicit cost
(ii) Accounting profit and economic profit
There are 1000 identical individual consumers for a good with a demand function Qd=12-20p and 100 identical suppliers with the supply function Qs=20p, find the demand and supply schedule and also find the equilibrium graphically
If the price of Pak Suzuki company Alto car decreases from Rs 1,700,000 to Rs 1,200,000, keeping other factors constant, it would be termed as movement along the demand curve or shift in the demand curve?
5. White House officials often exude more confidence than they actually feel about future prospects for the economy. Why might this be a good strategy? Are there any dangers inherent in it?
4.Suppose the government announces it will pay for half of any new investment undertaken by firms. How will this affect the investment demand curve?
3. Suppose local governments throughout the United States increase their tax on business inventories. What would you expect to happen to U.S. investment? Why?
2. If saving dropped sharply in the economy, what would likely happen to investment? Why?
The text defines the Malthusian trap as: “A point at which the world is no longer able to meet the food requirements of the population, and starvation becomes the primary check to population growth.” In other words, population will outpace food production.
Discuss whether you believe this trap has been avoided for the next 100 years. Consider government policies (like China’s one-child policy), the use of genetically engineered crops, social patterns of family size, and environmental factors.
Please answer in 200 words or more.
imi recently inherited some bonds (face value RM100,000) from her father, and soon thereafter she became engaged to Mamat, a Universiti Teknologi MARA, investment graduate.
Mamat wants Mimi to cash in the bonds, so the two of them can use the money for two years in Monte Carlo. The 2 percent annual coupon bonds mature on January 1, 2041, and it is now January 1, 2021. Interest on these bonds is paid annually and new annual coupon bonds with similar risk and maturity are currently yielding 12 percent.
If Mimi sells her bonds today and puts the proceeds into an account which pays 10 percent compounded annually, what would be the equal annual amounts she could withdraw from the account in the said 2 years’ time (2 equal annuity withdrawal amount)
