Economics Answers

What is the money supply

Assuming a world with only two countries (country A and country B), producing only 2 products (rice and coffee). Country A is reported to be efficient in producing both products, where the unit labor requirement to produce a kg of rice is 1 hour of labor, while for 1 pack of coffee (500g) is 2 hours of labor. On the other hand, country B needs 8 hours of labor to produce 1 kg of rice and 2 hours of labor to produce 1 pack of coffee (500g). In this case, in your opinion, country A and B should produce and export what product? Or they should not export? Explain.

The following balances appeared in the accounts of Fast Wheels for June:

what is major advantage of flexible exchange rate

 What is the formula for measuring the price elasticity of supply? Suppose the price of apples goes up from $20 to $22 a box. In direct response, Goldsboro Farms supplies 1,200 boxes of apples instead of 1,000 boxes. Compute the coefficient of price elasticity (midpoint approach) for Goldsboro’s supply. Is its supply elastic, or is it inelastic?

Assume today is 31 December 2021. Firm A, a commodity producer, is expected to adopt the following payout policy for the next 4 years: 

Year

 2022

2023

2024

2025

Dividends

($’ m)

9

12

5

0

The estimated net profit after tax is $50 million for the year 2025. The company has no preference share financing, and does not plan to do so for the next 4 years. The expected price-earnings ratio by the end of year 2025 is 15 times. Shareholders of Firm A require a return of 10 percent for shares in this risk class.

Required

a. Compute the intrinsic value of Firm A’s common shares.

 b. Critically evaluate the use of the Dividend Discount Model in valuing the shares of Firm A, and explain which alternative methods may be more appropriate

For the following, change the quantity but not the quality of the statement.

1. No tax proposals that favor the rich are fair proposals.                         1.9 Marks
2. Some residents of Nairobi are not persons who can afford to live there.   1.9 Marks
3. All bar owners are persons who expect expensive lawsuits.                       1.9 marks
4. Some University administrators are persons who choke the education process.1.9 Marks

 b. For the following, change the quality but not the quantity of the statement.

1. All drunk drivers are a threat to other road users.                               1.9 Marks
2. No wildlife refugees are locations suitable for mining.                          1.9 Marks
3. Some slumlords are persons who end up in jail.                                     1.9 Marks

Some DCI operatives are not champions of human rights.             

Do you agree with the view that international comparisons of India are as important as within India comparison? 

State and discuss any three categories of knowledge and their subject matter

With the aid of a diagram explain an oligopoly kinked demand curve