Economics Answers

How do u solve the balance of a trade, invisible trade balance and balance on current account

John Anderson wants to save for his daughter’s college tuition. He will have to pay Rs. 50,000 at the end of each year for the four years that her daughter attends college. He has 8 years until his daughter starts college to save up for her tuition. Using a 7% interest rate compounded annually, the amount Anderson would have to save each year for 8 years is closest to:

Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:

SRTC = 8 + 1/2Q^2 and therefore MC = q.

1. (a) Derive expressions for fixed costs (FC), those that do not vary with output, variable costs (VC), those that do vary with output, average variable cost (AVC), and average total cost (ATC).
2. (b) At what quantity is AVC at its minimum (at what AVC level)? At what quantity is ATC at its minimum (at what ATC level)? Calculate ATC at q = 2 and q = 8 and sketch MC, AVC and ATC betweenq=0andq=8.

EXPLAIN THE DETERMINATION OF EQUILIBRIUM GDP IN A FOUR SECTOR ECONOMY WHERE GOVT SPENDING AND TRANSFER PAYMENTS ARE AUTONOMOUS

AND TAXES AND IMPORTS ARE PROPORTIONAL TO INCOME

If income elasticity of demand of good X is 0.89, what will happen to equilibrium price if there is an increase in income of consumers? Draw a diagram to support your answer. 

If income elasticity of demand of good X is 0.89, what will happen to equilibrium price if there is an increase in income of consumers? Draw a diagram to support your answer. 

If Road Transport Authority (RTA) UAE increases the bus-fare from Abu Dhabi to Dubai, then what will happen to their revenue? [Hint: the demand curve is inelastic] Explain your answer with help of a diagram

Describe how one may use the Median Voter Theorem to derive a demand curve for a public good. Also discuss the problems that may arise and the solutions to these in implementing this procedure.

The organization structure of a Bank’s Treasury unit involves designing of its operations across Front office, Mid-office, and Back office. Describe each of these three operating arms in terms of its nature, purpose / objectives, and the skills / qualifications of the people employed in these 3 operating arms

Historically, only larger Banks had the strength of providing Treasury products & services. Now even smaller banks are into it in a strong way. Enumerate and describe at least 5 purposes for which a Bank Treasury exists