Other Economics Answers

Choose the best answer to each question.

21. Estimated Gini coefficients from actual international data typically lie between (  A ) for countries of highly unequal income distributions, and for countries with relatively equal distributions, they lie between (  B  ).

(a) A= 0.50-0.70, B = 0.20-0.35    (b) A= 0.80-1.00, B = 0.50-0.70

(c) A= 0.20-0.35, B = 0.35-0.50    (d) A= 0.40-0.60, B = 0.60-0.80

22. Which of the following is false regarding measures of income distribution? 

(a) Factor share distribution of income offers no information about how income is distributed among individuals.

(b) Measures of size distribution of income, such as the Gini coefficient, is not affected by the size of population.

(c) If Gini coefficient is 0.3, income distribution is considered highly unequal.    

(d) For developing countries, income growth based on Ahluwalla-Chenery 

 welfare index will be generally lower than GNI growth rate.         

Finance has gained great momentum and improvement over given period since 1960s.The revolution has caused a lot of development in the field of finance and thw contribution from various scholars have also been recognized. Discuss various revolution steps in the field of finance and recognizing various philosophers (10mks)

Suppose you are a monopolist and find that the demand elasticity of your

product is different in two markets. What would be your pricing strategy?

XYZ Bhd recently issued 10-year bonds at a price of RM1,000. These bonds

pay 3% in interest each six months. Their price has remained stable since

they were issued. Due to additional financing needs, the firm wishes to issue

new bonds that would have a maturity of 10 years, a par value of RM1,000,

and pay RM40 in interest every six months. If both bonds have the same

yield, how many new bonds must XYZ Bhd issue to raise RM2,000,000

cash?

Let 𝑋 be a uniformly distributed random variable in [a,n]. The values of an independently drawn sample of size five from 𝑋 are given by {1.3, 0.8, 9.5, 20.2, 8.2}. Let â and ñ

) Calculate the income elasticity of Good K when income increases from RM1000 to RM2200. State the type of Good K.

Jesse belongs to an HMO that requires precertification and preauthorization for certain medical care. Jesse does not like any of the physicians in the HMO, so he decides to go to a physician out of the network. When he receives his bill for care, his insurance has only made a minimal payment, and he is responsible for a large portion of the bill. What did Jesse do that minimized the payment? Would preauthorization or precertification make a difference in the payment?

In Utopian world, there is

(a) Scarcity of means

(b) Plentiful ends for all

(c) Abundant resources

(d) b & c

(State the reason too. There is a confusion between option (b) and option (c) )

Blackberry Ltd. acquired a machinery on 1st July 2017 for ₹ 15,00,000 and paid ₹ 90,000 towards it’s brokerage. On the same day ₹ 25,000 was additionally incurred to get the machinery installed in the factory premises. On 1st January 2019, company acquired another machinery for Rs.5,75,000. On the same date company had to pay ₹ 89,000 for routine maintenance of machinery purchased on 1st July 2017. On 1st October 2019, the machinery purchased on 1st July 2017 was destroyed and company has to scrap it off for ₹ 3,09,600. Company had to pay brokerage at 2% of sale proceeds in order to scrap off the machinery. Company depreciates its assets at 20% p.a. under WDV method. You are required to prepare Machinery A/c and Provision for depreciation A/c for 2018-2019 and 2019-2020.

What is the exception to the law of comparative advantage? How prevalent is it?