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Michaela spends R10 in the morning on bus fare from her house in Mitchells Park to MANCOSA. In the afternoon the same trip costs R9.50. the fact that the bus fare is more expensive during rush hour and less expensive in the afternoon implies that the demand for the bus ride in the morning is……………………while during the afternoon the demand for the bus is…………………….
a) less inelastic, more elastic
b) elastic, inelastic
c) unit elastic, inelastic
d) perfectly elastic, perfectly inelastic
- What classification of taxpayer are sole proprietorship form of business organization?
- What items are considered to be deductions of gross sales that are subject to 8 percent income tax rate?
- How much is the ceiling amount fixed by law to determine VAT registrable taxpayers?
- How do you call a taxpayer who receives income from employment and business or practice of profession?
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 W1 P2 Q2 W2 Call centre 10 100 50 12 100 50 Banking 10 200 50 12 230 60 b. Using year 1 prices, what is real GDP in year 2? What is the growth rate of real GDP? What is labour productivity growth between year 1 and year 2 for the whole economy? Now suppose that banking services in year 2 are not the same as banking services in year 1 because they include internet banking, which year 1 banking services didn’t include. The technology for internet banking was available in year 1 but the price of banking services with internet banking in year 1 was $13 and no one chose that package. However, in year 2 the price of banking services with internet banking was $12 and everyone chose to have that package in year 2
Bud and Wise are the only two producers of aniseed beer, a New Age product designed to displace root beer. Bud and Wise are trying to figure out how much of this new beer to produce. They know:
If they both limit production to 10,000 gallons a day, they will make the maximum attainable joint profit of $200,000 a day-$100,000 a day each.
If either firm produces 20,000 gallons a day while the other produces 10,000 a day, the one that produces 20,000 gallons will make an economic profit of $150,000 and the other one will incur an economic loss of $50,000.
If both increase production to 20,000 gallons a day, each firm will make zero economic profit.
Construct a payoff matrix for the game that Bud and Wise must play.
Find the Nash equilibrium of the game that Bud and Wise play.
A crop failure causes the supply of coffee to decline, while at the same time, the demand for coffee increases.
What impact would these events have on the market for coffee?
Us antitrust laws are too restrictive. Is this a normative or positive economics?
A firm’s production function is given by the equation f(K,L) = 6K0.5L0.5. The marginal product of labor for this firm is
Answer the following questions about marginal propensity to consume and the multiplier. First provide the correct equation and then show your work to arrive at the answer:
What is the marginal propensity to consume when consumption changes from 7 to 6 and disposable income changes from 5 to 3?
If disposable personal income is 10 and consumption is 12, what is personal savings? What does this mean?
What is the multiplier when the change in equilibrium level of real GDP in the aggregate expenditures model is 9, and change in autonomous aggregate expenditures is 3?
What is the multiplier when the marginal propensity to save is 1/3?
What would happen to the marginal propensity to save when a tax cut was enacted causing the multiplier to change to 5?
Market equilibrium price of white sugar is Rs. 190.00 per Kg. but government impose a maximum price of Rs. 129.00 per Kg. to easy the living cost of general public. Discuss the impact of this impose on the market and critically evaluate the practicability of achieving the government objective.
Consider an economy with two industries. The information technology industry sells $60 of services to final consumers and $100 to the financial sector, which in turn produces $120 of financial services. How much is the GDP in this economy?
#333702 on Dec 2022