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On 1 January 2020 Power Lid purchased a vehicle for $12 000 cash. It is the policy of the company
to depreciate vehicles at the rate of 20 % per annum under the straight-line method.
On 1 May 2020 the company bought a furniture for $4 000 by cheque. It is estimated that the
furniture will have a useful life of 3 years after which it will have scrap value of $100
a) Calculate depreciation for the vehicle for the year ended 31 December 2020 and 2021.
b) Calculate depreciation for the furniture for the year ended 31 December 2020 and 2021.
Price increases from $10 to $12 and the price elasticity of demand is -0.5. The quantity demanded is 450 units. What was it before?
There was the so called first oil shock in 1973-1974. As a result, the price oil increased in four times. Consequently, price of gasoline increased as well. It reached in people buying smaller economic cars, Demand for large cars therefore decreased which resulted in lower number of large cars produced at lower price. Can you present this situation graphically using the concept of demand and supply and equilibrium?
Elif can produce 6 pies or 30 cakes in 1 hour. Ahmet can produce 10 pies or 20 cakes in 1 hour.c) What is the opportunity cost of producing pies for Elif? What is the opportunity cost of producing pies for Ahmet? d) What is the opportunity cost of producing cakes for Elif? What is the opportunity cost of producing cakes for Ahmet? e) Who has a comparative advantage in producing pies and who has a comparative advantage in producing cakes? f) On the PPF lines, show what Elif produces and what Ahmet produces when they specialize. g) Suppose that they set the exchange price as 1 Pie = 3 Cakes. If they specialize and trade, show an exchange situation that is beneficial for both (compared to the situation you found at part (b))? h) What is the minimum and maximum exchange price they could have determined for an exchange that will be beneficial for both of them?
There is an investment opportunity set where the optimal risky portfolio O has expected rate of return of 12% and volatility( or standard deviation) of 25%, and T-bill yields a risk free rate of 2%.
1. Investor A chooses to invest 75 % in the portfolio O and 25% in T-bill. Compute the expected return and volatility of her portfolio, and its Sharpe ratio.
2. Investor B has an expected risk premium of 7% to the risk-free asset return with her portfolio. Compute the composition of her portfolio and its Sharpe ratio.
3. Investor C has a volatility target of 20%. Compute the expected return and its Sharpe ratio.
4. Draw a CAL line and mark Sharpe ratio and all investors’ asset allocation choices(A, B, C).
Kim and Raj have been married for a very long time but they have "coffee issues." Kim's invese deman curve for cups of coffee is = 10 - 2q while Raj's inverse demand curve for cups of coffee is = 5 - q. What is their joint demand for coffee when the price per cup of coffee is $4 and $6, per cup, respectively?
Demand and supply
Critically explain the classical theory of income and employment Is it relevant in 21st century.
Because of increasing marginal cost, most supply curves are
When the central statics office surveys the population ,it places all adults 16years and above into one of the category employed , unemployed or not in the labour force . zambia's population was estimated to be 17.4 million people as of 2018. When officiating at the pensions and insurance authority event. The minister of labour and social services in late 2018 disclosed that zambia's unemployment rate is 41.2. the working age population is 16 years or older was estimated at 9056840.The labour force population was 3398294. Calculate the total number of people unemployed ,the labour participation rate ?
