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Assume inflation in Turkey is 50% and 2% in the US. Using the relative PPP,
a) Calculate the exchange rate (R= TL/$) and the exchange rate (R= $/TL).
b) Assume that the Turkish inflation increases to 100% while the US inflation remains at 2%, calculate the new exchange rate between the Turkish Lira and the US dollar.
If the demand and supply curve for T-Shirts at Nagindas Store are:
D = 100 - 6P, S = 28 + 3P
Where P is the price of T-Shirts in dollars ($), what is the quantity of T-Shirt bought and sold at
equilibrium?
Q
To compute economic profits, which costs are used?
Swindall Industries uses straight-line depreciation on all of its depreciable assets. The company records annual depreciation expense at the end of each calendar year. On January 11, 2007, the company purchased a machine costing $90,000. The machine's useful life was estimated to be 12 years with a residual value of $18,000. Depreciation for partial years is recorded to the nearest full month.
In 2011, after almost five years of experience with the machine, management decided to revise its estimated life from 12 years to 20 years. No change was made in the estimated residual value. The revised estimate of the useful life was decided prior to recording annual depreciation expense for the year ended December 31, 2011.
a.Prepare journal entries in chronological order for the above events, beginning with the purchase of the machinery on January 11, 2007. Show separately the recording of depreciation expense in 2007 through 2011.
Distinguish between cardinal and ordinal approach and compare which approach is better to explain the concept of utility.
1. An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes.
a. Who has the absolute advantage in coffee? Explain.
b. Who has the comparative advantage in coffee? Explain.
c. If the two countries specialize and trade with each other, who will import coffee? Explain.
d. Assume that the two countries trade and that the country importing coffee trades 2 ounces of soybeans for 1 ounce of coffee. Explain why both countries will benefit from this trade.
how and briefly explains what happens to the supply curve, if:
i. Productivity increases due to a change in technology
ii. Increase in the profitability of producing other goods other than this good
iii. Decrease in prices of input used in production
Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply schedules are as follows:
price($) Quantity Demand Quantity Supply
4 10,000 8000
8 8,000 8000
12 6,000 8000
16 4,000 8000
20 2,000 8000
a. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true?
The demand and supply functions of a product are given by the following
equations: Qd =1500 - 2P and Qs = -1300 + 2P
The government announces a program to support a price increase of $30 per kg of
this grain, which imposes a price floor of $730.
A. What are the equilibrium price and quantity before price support policy?
B. What quantity of grain is purchased by the consumers, supplied by the
producers and purchased by the government at the support price?
C. What is the change in consumer surplus, producer surplus and total surplus?
What is the cost of government to implement this price support policy?
D. Later on, the government changes the price support policy and provides
subsidy of $20 per kg sold. What is the price paid by buyers, price received by
sellers, change in consumer surplus, change in producer surplus and
government cost?
A firm has the following short run function Q = 100 K1/2 L,1/2r = Rs 50, W = Rs
40, P = Rs 2 and C = Rs 1000, calculate:
a. Marginal productivities of both inputs. ( MPL& MPK)
b. Sketch expansion path of output.
c. Explore the equilibrium level of capital and labor.
#340153 on Dec 2023