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Batch No 465 required $ Kgs of materials in stores which cost $15/Kg, and also a special
component had to be bought at a cost of $1,000. 30 Hours labor were spent on the Batch where the employees were paid at $ 90/Hour. In addition, 3 Hours were spent by supervisor who is paid at $ 150/Hour. Overheads are absorbed at the rate of $ 40/Labor hour. Calculate the total absorption cost of the Batch No 465
Suppose that the real GDP increase by R5,000 billion when government expenditure on the construction of new roads increase by R1,500 billion. What is the value of the marginal propensity to consume?
20. How does the price, quantity and total revenue at the equi librium change when: a) the demand increases and the supply is fixed, b) the supply decreases and the demand is perfectly elastic?
What have been the reasons for employment decline for the Indian economy in the period of the pandemic? Is the decline indicative of a temporary disruption due to the pandemic or do you see a continuity and exacerbation of an already established tendency of jobless growth?
If a country is doing so well in on sector that the performance of that sector is hiding the under performance of all the other sectors. What market failure is it called?
Explain how an increase in the price of organic onions can affect the supply of organic tomatoes that use the same land to grow. How will this affect the equilibrium price and quantity of organic tomatoes?
Using the following graph, show what happens to consumer surplus when a new technology reduces the cost of production
Suppose, the government has decided that the free-market price of sugar is too low. Government has imposed a binding price floor of per kg sugar at 60 taka, whereas, the market price was 50 taka per kg before the announcement.
a. Explain the effects of this flooring price on the demand and supply of the sugar market. In your graph, show the effects of the price changes on quantity demanded and quantity supplied. Does it create excess supply or excess demand? What will happen to the market price?
b. In the above situation, who (buyers or sellers) is going to get the benefit from such policy? Explain it in your own words (clue: use a graph where a Price flooring is binding).
Assume you are the Minister of Finance and need to raise revenue by choosing to tax a specific good, such as cigarettes or jewellery. Suppose that cigarettes have an inelastic demand, while jewellery has an elastic demand. Based on their elasticity, would you tax jewellery or cigarettes?
The following information is available to a Zambian trader:
i. Percentage spread given for Zambian kwacha per US dollar is 0.1%. The ask rate for Zambian kwacha per C$ dollar is K9.526
ii. Canadian dollars per US dollar C$ 1.2780/US$
iii. Kwacha per US dollar K8.524/US$
a) Calculate the bid rate
b) Determine if there is any opportunity for arbitration
c) Explain How a Zambian trader with K1, 200,000 can use this amount to benefit from the inter market arbitrage?
What will be the profit or loss for the trader?
