Economics Answers

Who are the poor, and what are their characteristics?

Suppose that there are only two goods produced in the economy, Call center services and banking services. Prices (P), quantities (Q) and the number of workers (W) occupied in the production of each good for year 1 and year 2 are given by the following table : Year 1 Year 2 Two products P1 Q1 W1 P2 Q2 W2 Call centre 10 100 50 12 100 50 Banking 10 200 50 12 230 60 a. What is nominal GDP in each year? 

Suppose that there are only two goods produced in the economy, Call center services and banking services. Prices (P), quantities (Q) and the number of workers (W) occupied in the production of each good for year 1 and year 2 are given by the following table : Year 1 Year 2 Two products P1 Q1 W1 P2 Q2 W2 Call centre 10 100 50 12 100 50 Banking 10 200 50 12 230 60 a. What is nominal GDP in each year? 

When households attempt to increase saving but end up by saving no more than before the attempt, they have encountered:

what does the multiplier effect sujest

1. The ratio of nominal GDP to real GDP is known as the:

Suppose that there are only two goods produced in the economy, Call center services and banking

services. Prices (P), quantities (Q) and the number of workers (W) occupied in the production of

each good for year 1 and year 2 are given by the following table :

Year 1 Year 2

Two

products

P1 Q1 W1 P2 Q2 W2

Call centre 10 100 50 12 100 50

Banking 10 200 50 12 230 60

a. What is nominal GDP in each year? ( 2 marks)

b. Using year 1 prices, what is real GDP in year 2? What is the growth rate of real GDP?

( 2 marks)

c. What is the rate of inflation using the GDP deflator? ( 2 marks)

d. Using year 1 prices, what is real GDP per worker in year 1 and year 2? What is labour

productivity growth between year 1 and year 2 for the whole economy?

Jones Co has the following transactions 1st March 2020: Payment of sh. 400 cash to Mbogo for credit purchaces what is the correct ledger entries to record this transaction?

Question 4: List and explain various majors (indexes) of human welfare. Compare the Human Development Index (HDI) for major Pacific Island Countries and write critical analysis. ( 5 marks) Question 5: a) How is money supply different in a fixed compared to a flexible exchange rate system? b) Explain why does monetary policy lose autonomy in a fixed exchange rate system ? c) Explain the assumptions of flexible exchange rate and fixed exchange rate. Which is an appropriate system for an small island economy of the Pacific ? ( 5 marks) Question 6 (a)Why is the amount of R&D spending important for growth? How do the appropriability and fertility of research affect the amount of R&D spending? (b) How do each of the policy proposals listed in (i) to (iv) affect the appropriability and fertility of research R&D spending in the long run, and output in the long run?

N(t)=2400000e^0.03t

What time is required for the population to tripple if N is the population size at time while t is the number of years