Economics Answers

In the organization, it is important that we update our people

to the current state of the business. SWOT is one of the

framework that clearly show where we are and the chances of

where we are going. So it is very essential that our people

know what it means.

To give the presentation clarity, design your own visual

representation of SWOT Analysis and PORTER’s Five forces.

Note: Design your own icon that may represent the factors.

In reference with the given picture of SWOT vs. PEST Analysis, answer the following questions.

1. How would you compare the two tools?

2. How would you related the two tools?

3. When do you use the SWOT and PEST Analysis?

1) An economy has a saving function (s) which is given by the equation s= -300 + 0.2Y. If the level of national income is 3000 what is the APS?

2) If, in an economy, out of every additional 100 of national income 20 is taxed. 20 is spent and10 is spent on imports, the value of the multiplier is?

3) National income =1000 and injection = 75 calculate the new national income if the

i) moc = 0.4 and mpt =0.1

li) mpc = 0.2 and mpt = 0.2

4) A man has a rise in income of 23000 to 26000. As a result his saving rises from 800 to 1200. His mpc is?

A competitive firm has the short-run cost function C(y) = 12y3  - 8y2+30y+12. At what price will the firm agree to produce in the short-run? What is the shutdown condition for this firm?

what factors militate against the effective compliance with continuous assessment standard by Economics teachers in South Africa

Suppose the GDP per capita (income) has increased from $5000 to $10,000, whereas the demand for luxury apartments has increased from 1000 to 2000, whereas the demand for burgers has increased from 10,000 to 12,000. Calculate the income elasticity of demand for apartments and burgers

 Which obstacles impede Economics teachers' successful adherence with the continuous assessment norm in South Africa? /09/

If current price of stock is $25 and you hold it for one year and received dividend of $2.5. You sold it at $27. How much return you received? Show dividend yield and capital gain separately

 Suppose a three-year corporate bond provides a coupon of 6.0% per year payable semiannually and has a yield of 5.0% (expressed with semiannual compounding). The yields for all maturities on risk-free bonds is 3.5% per annum (also semiannual compounding). Assume that defaults can take place every six months (immediately before a coupon payment) and that the recovery rate is 38%. Estimate the semiannual default probabilities assuming that the unconditional default probabilities are the same on each possible default date. 

Suppose that

i. The yield on a five-year risk-free bond is 3.0%

ii. The yield on a five-year corporate bond issued by company X is 6.2%

iii. A five-year credit default swap providing insurance against company X defaulting costs 280 basis points per year.

(a) What arbitrage opportunity is there in this situation?

(b) What arbitrage opportunity would there be if the credit default spread were 340 basis points instead of 280 basis points?

(c) Give two reasons why arbitrage opportunities such as those you have identified may be less than perfect in a real-world situation.