Economics Answers

Indicate by choosing the correct option whether the following statement is true or false:

Output VAT is the tax (charged) by the entity on goods delivered to the entity.

What will the journal entry be if an entity buys inventory on credit when the periodic inventory system is in use (Ignore any VAT implications)?

. An investor expects to receive Rs 572750, at the end of 20 years to keep his retirement life happy. Discuss how much money he should invest in lump sum to meet his expectation at the given prevailing interest rate of 10% per annum. Discuss the concept of time value of money you applied here.

3.b. How much wealth Rs 20000 would produce if it’s invested in a fixed deposit for a tenure of 12 years at an interest of 8% per annum. Also, discuss the concept of compounding and

calculating the future value of money.

The cedi is the best performing currency in the world against the US dollar. This is according to Vice President Dr. Mahamudu Bawumia.

The cedi depreciation, which has been a major problem in the country over the years, has even led to the inauguration of the FX Development Committee to tackle issues relating to the depreciation of the cedi and find solutions to them.

QUESTIONS

1.     How is Ghana positioned to increase the value of the cedis? (5 marks)

2.     Do you think there is a conflicting role between BOG and FX Development committee? (Please give reasons for your answer) (5 marks)

3.     Controls on imports and/or foreign exchange dealing has been one of the arguments used in maintaining fixed exchange rate. What problems might arise if the government were to

adopt this method of maintaining a fixed exchange rate? (10 marks)

QUESTION

Many social and economic commentators are fond of the argument that for South African economy to achieve rapid economic growth and significantly higher real income requires structural reforms as well as stabilization. With the above mention statement in mind, identify and discuss five structural reformed policies relevant for South African economic challenges,

what are the advantages to retailer to sharing inventory. For suppose you go to a car dealer to find a blue model and he doesn't have that model in stock. Typically he will obtain the model from the another local dealer. What are the disadvantage

to the retailer?

1. When Mxit first launched, they planned to be one of the biggest innovative organisation 

in the IM industry yet 10 years later the company shut down its operations. Following

systematic steps on a control process and using practical examples based on the case 

study, establish why did Mxit failed to achieve their planned objectives. 

 (30)

2. Is there anything that they could have done differently to achieve their planned 

objectives? Justify your answer (10)

3. Who is to blame for this failure in the organisation and what information were they 

supposed to gather so that their activities could be aligned strategic goals and 

strategies?

Sally can make 8 cups of soup per hour or 20 crackers per hour. Harry can make 10 cups of soup per hour or 30 crackers per hour. Can Sally and Harry gain from trade? If so, what is the range of prices of crackers for soup at which they would both find trade advantageous? 

Given the total cost function; TC = 3Q³ - Q² + 150Q +50

A.           What is the fixed cost and what does it shows?

B.           What is the variable cost function? What is the variable cost at Q = 2?

C.           What is the maximum output level at the minimum level of average variable cost

D.           At Q = 3 what Is the trend of average cost function (is that increasing or decreasing)? Why?