Economics Answers

Bond details for below date

Issue Date : 1st Oct 2000

Par: $1,200

Coupon interest:6% ( Semi annual payment)

Day Count Convention: Act/360

Bond sold on 2nd July 2002

Calculate Accrued Interest and Dirty price.

Bond details for below date

Issue Date : 15st July 2004

Par: $1,400

Coupon interest:5% ( Quarterly payment)

Day Count Convention: 30/360

Bond sold on 2nd May 2008

Calculate Accrued Interest and Dirty price..

 Co.A issued bonds on 1st Jan 2008 for 10 year maturity

Par : $1500

Coupon interest: 3% Annually

Day Count Convention :Act/365

Mr.X bought 20 bonds on 1st Feb 2008.

Then sold 10 bonds to Ms.Y on 16th Aug 2010 for $1300

Then sold 5 bonds to Mr.Z on 18th Feb 2016.

Calculate the Accrued Interest and Dirty price..

Food delivery is not a new trend of business, but it becomes newly important when Movement Control Order (MCO) was implemented since March last year in Malaysia. Discuss how the implementation of MCO affect the demand of food delivery in the market (support your answers with a diagram). What do you think is the elasticity of demand for food delivery during the MCO period? Give your reason. If the food delivery company would like to increase the revenue during the MCO period, explain what can the company do with the delivery charges?

3. Consider an economy with the following aggregates:

Consumption function: C = 50 + 0:8Yd, where Yd is disposable income

Autonomous investment: I¯ = 70

Government expenditure: G¯ = 200

Government transfer: TR = 100

Tax rate: t = 0:20

(a) Calculate the equilibrium level of income, the multiplier, and the

budget surplus in this model.

(b) Suppose that the marginal propensity to consume increased permanently to 0.9. What is the impact of this increase on the level

of equilibrium income and the multiplier?

(c) Suppose that the tax rate t increases to 0.25. Calculate the new

equilibrium level of income, the budget surplus, and the multiplier.

6. Suppose technology stops changing. Explain the impact on economic growth

3. A cloth producing firm in a perfectly competitive market has the following short-run total cost function: TC = 6000 + 400Q – 20Q2 + Q3 . If the prevailing market price is birr 250 per unit of cloth,

A) Should the firm produce at this price in the short-run?

B) If the market price is birr 300 per unit, what will be the profit (loss) of the firm at equilibrium? Should the firm continue to produce or not?

C) Calculate the shut-down price of this firm?

4. Assume a wheat producing farmer engaging in selling its product under perfect competition market faces cost functions as TC= Q3 -2Q2 +8Q and Average revenue of the farmer is given as Birr 8 . Having this information, A) Determine the optimal level of output and price in the short run.

B) Calculate the economic profit (loss) the farmer will obtain (incur)

C) What will be the minimum price level the farmer gets to continue in wheat production?

3. Suppose an increase in air pollution causes capital to wear out more rapidly, doubling the rate of depreciation. How would this affect economic growth?

There is an ongoing debate about whether free trade is beneficial for the global economy. Choose whether you support free trade or if you prefer trade barriers. Be sure to cite specific facts and figures to support your analysis. Remember that there may be more than one perspective that could be equally valid given the circumstances. 

3. A cloth producing firm in a perfectly competitive market has the following short-run total cost function: TC = 6000 + 400Q – 20Q2 + Q3 . If the prevailing market price is birr 250 per unit of cloth,

A) Should the firm produce at this price in the short-run?

B) If the market price is birr 300 per unit, what will be the profit (loss) of the firm at equilibrium? Should the firm continue to produce or not?

C) Calculate the shut-down price of this firm?

4. Assume a wheat producing farmer engaging in selling its product under perfect competition market faces cost functions as TC= Q3 -2Q2 +8Q and Average revenue of the farmer is given as Birr 8 . Having this information,

A) Determine the optimal level of output and price in the short run.

B) Calculate the economic profit (loss) the farmer will obtain (incur)

C) What will be the minimum price level the farmer gets to continue in wheat production?

1. Davit plans to consume two goods (good x and good y) with a limited budget. If Davit's budget line has intercepts 100 units of good x and 50 units of good y and price of good x (Px) is $100. Then, answer the next three questions.

A) What are Davit's income and Price of good y (Py)

B) What is the simplified version of Davit's budget line equation?

C) If Davit's utility function is given by U(X; Y) = X0.5Y 0.5, how many units of good X and good Y would he consume if he choose the bundle that maximizes his utility subject to his budget constraint?

2. Consider the following total cost function: TC = 2/3Q3 – 10Q2 + 200Q + 50

A) Identify the FC and VC function?

B) Calculate AVC, AFC, ATC, and MC functions

C) Determine the level of output at which AVC reaches minimum point and the minimum AVC at that level of output?

1) A market has an inverse demand curve and five firms, each of which has a constant marginal cost of If the firms form a profit-maximizing cartel and agree to operate subject to the constraint that each firm will produce the same output level, how much does each firm produce?

2) What is the duopoly Nash-Cournot equilibrium if the market demand function is Q = 4,000 - 400p, and each firm's marginal cost is $0.28 per unit?