Economics Answers

Holding the number of firms in the market fixed what happen to the price as the number of non-cartel members rises?why?

The relationship between saving and consumption could be summed up in the predictions of the two popular models of consumption behaviour. Namely the permanent income hypothesis and the life cycle models of consumption. These two models are based on the premises that the motive for saving is to average out consumption over an infinite time horizon. In general both theories predict that consumption is determined by life time resources rather than each period’s income. Discuss the relevance of these two theories for explaining saving and consumption behaviour in developing countries including Africa? (10 marks) 

1. Lovers of classical music persuade Congress to impose

a price ceiling of $40 per concert ticket. As a result of

this policy, do more or fewer people attend classical

music concerts? Explain.

Fill in the gaps in the table below

Quantity of           Total Output     Marginal Product     Average product of
Variable of input                      Variable input        Variable input
0                        0                   -                  -
1                        225
2                                                               300
3                                           300
4                        1140
5                                           225
6                                                                225

    

Impact of Traditional economics on banking sector. (Objectives, functions, outcomes, Rules against Islam) ?

Fill in the gaps in the table below 

QuantityofVariableinputTotalOutputMarginalProductofVariableinputAverageProduut

 0 0

1 225

2 300

3 300

4 1140

5 225

6 225

Does positive value of x make economic sense and what is underlying economic theory

Does the marginal utility of x diminish, remain constant, or increase as the consumer buys more x?

1. In response to the 2020 economic disruption, the Federal Reserve dropped the commercial bank reserve requirement to zero. Therefore

a.The discount rate increased

b.Asymmetric information increased

c.Money supply increased

d.Bank profitability definitely increased

By looking at stock’s P/E ratios we may be able

a.Identify government spending

b.Identify asset bubbles

c. Low-interest rates

d.None of the above