Economics Answers

In order for MXit to be successful, Herman Heunis needed to have the ability to consider the business as a whole and to understand how it fits within its marketplace. Which skill is referred to here?

Select one:

a. Strategy skills

b. Planning skills

c. Marketing skills

d. Project management skills

By its nature, brewing beer is a water-intensive process. Making more beer, but using less water, is one of SABMiller’s three global focus areas. The transformation of water and other ingredients, by SAB, into beer and other alcoholic beverages is known as ______ . 

a. exchange 

b. consumerism 

c. economic principle 

d. production

PROBLEM SET 2- PART 1

Question 1 - Elasticity 

You are an analyst employed by a yacht manufacturer that last year sold 30,000 luxury yachts at $500,000 each. Your market research indicates that:

i) the price elasticity of demand for your aircrafts in −0.5. (or +0.5 in absolute value); 

ii) the income elasticity of demand for your aircrafts is +2.6; and 

iii) the cross price elasticity for your aircrafts with respect to the price of a comparable jet manufactured by a competitor is +1.4. 

C. Now suppose that the only change you expect is a 6% increase in the price of your aircraft. Estimate sales this year and discuss the impact on total revenues (5 MARKS)

Why it necessary for the government to impose taxes?

What is the concept of demand and supply in the world of economy?

Consider the following Cobb Douglas Production Function:

Y =√K √N

Compute output when K = 49 and N = 81.

Suppose that the income elasticity of demand for potatoes is −0.5 and the cross-price elasticity of demand for potatoes, with respect to the price of carrots, is 2. What will happen to the quantity demanded of potatoes when

a. There is a recession?

short notes on Non-Bank Financial Institutions (NBFI) (Hint: discuss the various NBFIs and their role in the economy)

Using relevant macro-economic model provide policy advise for a country experiencing current account deficit