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The flow of income and spending is usually a … . [1] monetary flow and flows in the same direction as goods and services [2] goods flow and flows in the same direction as goods and services [3] services flow and flows in the opposite direction to goods [4] monetary flow and flows in the opposite direction to goods and services
The circular flow model for goods and services is where … .
a. the households sell their factors of production to the factor market where they are purchased by firms
b. firms consume goods and services offered on the goods market
c. firms combine factors of production and produce goods and services
d. goods and services are offered for sale on the factor market
[1] Only a.
[2] Only a and c.
[3] Only a, c and d.
[4] Only d
Edward is the owner of Scissor-hands (Pty) Ltd, a very successful hairdressing business. Edward is considering expanding his business and starting another company. He has already entered into a new lease agreement with a third party for premises for his new company. He is unsure about the requirements of the Companies Act regarding pre-incorporation contracts.
REQUIRED
Explain to Edward the Companies Act requirements concerning pre-incorporation contracts.
Calculate the public interest scores in order to consider whether the following companies should be audited or not:
XYZ (Pty) Ltd (XYZ). Mr. X owns 50% of the shares in XYZ. Due to Mr. X’s excellent financial background, he handles all the financial matters of XYZ, including the compilation of the financial statements. The company employs a workforce of 70 employees on average. The company had a turnover of R80 million and owes no third party liabilities. Mr. Y (10%) and Mr. Z (40%) hold the remaining shares
Calculate the public interest scores in order to consider whether the following companies should be audited or not:
ABC (Pty) Ltd (ABC). Mr. X and Mr. Y each hold 20% of the shares of ABC and the remaining 60% of the shares are held by 40 other shareholders. The company employs an average workforce of 165 employees. The financial statements of the company are compiled by Mr. Z, a partner at the accounting firm Creative-Accountants-R-Us. ABC had a turnover of R185,5 million and the only liability of the company is its bank overdraft of R7 million.
suppose you are a monopolist and find that the demand elasticity of your product is different in two market what would be your pricing strategy
There are two toast bakers in City A: Anderson and Carlson. They make the same toast and nobody can tell the difference. Th e demand curve of the toast in City A is P =6-0.01 Q, Q is the demand in each day and Q = Q A + Q C . The firms’ cost functions are C A (Q A )= 2 + Q A and C C (Q C ) = 1 + 2Q C
a. What is each firm’s equilibrium output and profit if they behave noncooperatively? Use the Cournot model. Draw the firms’ reaction curves and show the equilibrium
Suppose that an industry is characterized as follows:
C = q2 each firm’s total cost function
P =12-q industry demand curve
a. If there is only one firm in the industry, find the monopoly price, quantity, and level of
profit.
b. Graphically illustrate the demand curve, marginal revenue curve, marginal cost curve, and average cost curve.
c. If the government decides to levy a tax of $2 per unit on this product, what will be the new level of production, price, and profit?
23. If Total Poverty Gap is $5,000, the number of persons whose income fall below the poverty line is 200, and the size of population is 1,000, then what is the Average Poverty Gap?
(a) $5 (b) $250 (c) $1 million (d) $10
24. Which of the following is included into the computation of both Gender Development Index(GDI) and Gender Inequality Index(GII)?
(a) women’s educational attainment (b) women’s life expectancy at birth
(c) women’s participation in the workforce (d) women’s income per person
25. Which of the following can have a value bigger than 1?
(a) Gender Inequality Index (b) MPI
(c) Gini coefficient (d) Normalized Poverty Gap
(e) Gender Development Index
Choose the best answer to each question.
21. Estimated Gini coefficients from actual international data typically lie between ( A ) for countries of highly unequal income distributions, and for countries with relatively equal distributions, they lie between ( B ).
(a) A= 0.50-0.70, B = 0.20-0.35 (b) A= 0.80-1.00, B = 0.50-0.70
(c) A= 0.20-0.35, B = 0.35-0.50 (d) A= 0.40-0.60, B = 0.60-0.80
22. Which of the following is false regarding measures of income distribution?
(a) Factor share distribution of income offers no information about how income is distributed among individuals.
(b) Measures of size distribution of income, such as the Gini coefficient, is not affected by the size of population.
(c) If Gini coefficient is 0.3, income distribution is considered highly unequal.
(d) For developing countries, income growth based on Ahluwalla-Chenery
welfare index will be generally lower than GNI growth rate.
#339914 on Dec 2023