Economics Answers

Question:

 For the data given below;

Years Price of Apples

 (in $) Quantity of Apples

 (in $) Price of Bananas (in $) Quantity of Bananas 

(in $) Prices of Mangoes (in $) Quantity of Mangoes 

(in $)

2010 4 80 5 100 10 200

2011 5 100 6 120 11 220

2012 6 120 7 140 14 280

2013 7 140 8 160 16 320

Find out:

Cost of CPI Basket 

Consumer Price Indices (CPI) for each year considering the year 2010 as base year

Inflation rate for each year

What do you mean by demand pull and cost push inflation. 

Jacky has obtained some information related to national income accounts from published reports. However, Jacky was confused by the massive information obtained and had encountered difficulties in answering his tutorial questions. To assist Jacky, calculate the following economic indicators by demonstrating clearly the formulas and steps

Population

per capita GDP (market price)

GDP deflator

Factor income from abroad

Transfer payment to individuals

Interest payment to individuals

Contribution to EPF

Contribution to SOSCO

Corporate profit taxes

Personal income tax

Indirect taxes

Corporate dividend payment

Net exports of goods and service

Net factor payment to abroad

Undistributed corporate profits

Public final consumption expenditure

Private final consumption expenditure

Public gross fixed capital formation

Private gross fixed capital formation

A) Changes in inventories?

B) GDP (market price)

C) National income

D) Personal income

Digicel Threats of suppliers taking over the firm market

Suppose Congress had chosen to both increase government

spending and raise taxes by the same amount in

2009. What increase in government spending and taxes

would have been required to prevent the decline in output

in 2009?

. Draw demand and supply curves and explain what will happen in each scenario. 

 Eskom implements load shedding to reduce the supply of electricity and lighten the load on the system. What will the effect of a reduction in the supply of electricity be on the market for electricity?     

Eskom is facing increasing debt of close to R500 billion, and Accountants will comment that they are not making a normal profit. As an economist, you could argue that Eskom is also not making an economic profit. Elaborate on the difference between accounting and economic profit and provide suggestions of how an Eskom can ensure an economic and accounting profit

Suggest a relevant government policy that would yield the efficient outcome and carefully explain the process through which the implementation of the government policy will lead to the optimal outcome. (Maximum 30 words) 

How can financial and fiscal policy help promote development

Should multinational corporations be encouraged to invest in low- and middle-income countries,

such as through investment promotion programs, and if so, under what conditions?

What is the role of the financial intermediation in economic development?