Other Economics Answers

a)   Explain thoroughly, with examples, the following:

i.              Heteroscedasticity

ii.             Perfect multicollinearity

iii.            Unbiasedness

Molly has a 2500 down payment saved for this purchase, and the dealers 1500 cash allowance will come straight off her total. How much loan does molly need?

In Bennett’s Ltd three types of jobs are performed in separate production departments E, F, and G. In addition, there are two service departments A and B. indirect labour costs and other indirect expenses for Bennett’s Ltd, have been allocated to departments as follows:

Production departments Service departments

                   E      F     G

Indirect labour    5000 7000   9000

Other indirect exp. 2000  4000  6000

                 7000 11000 15000                    A        B

 Indirect labour   2000     3000 

Other indirect exp. 3000     4000

                 5000     7000

The expenses of the service departments are to be allocated between other departments as follows:

Dept. A to Depts. E 30%; F 25%; G 35%; B 10%

Dept. B to Depts. E 35%; F 29%; G 36%

In departments E and F the job costing is to use an overhead rate per direct labour, while in G an overhead rate per machine hour rate is used. The number of direct hours and machine hours per department is expected to be:

The Federal Reserve raises reserve requirements.

What would likely result from this event?

The following are indirect quotations of the dollar against the Swiss franc, the Japanese yen, and the British pound: $1 = SF1.4814 – 1.4828 $1 = ¥124.26 – 124.37 $1 = £0.6419 – 0.6428 (a) Calculate the midpoints in each rate and the direct quotation of each of the above rates. (b) Calculate the cross rates between (i) the Swiss franc and the Japanese yen, (ii) the Swiss franc and the euro, and (iii) the Japanese yen and the euro.

(3) Elasticity of Demand

For the linear demand p the demand is: = 13 0.05q, please find the price interval in which -

a Elastie

b) Inelastic

Unit elastic

d) Explain intuitively the meaning of increasing revenue on interval for which demand is elastic and decreasing revenue on interval for which demand is inelastic (50-100 words) (20 points)

In your own words, what is concept of demand

what kinds of entry barriers helped protect intels monopoly positions? What actions dis intel take to impede market entry?

suppose that the demand curve facing opec is given by p= 120-2q and that each member's cost of producing oil is ac=mc= $20. find the cartels profit maximizing total output and price. If instead of keeping to this output, all members overproduced their quotas by 20 percent,what would be the effect on OPECS total profit

(d) The table below shows the marginal utility schedule for orange (X)      and apples (Y). Suppose that oranges and apples are the only two  commodities available, the price of orange is Shs 10 , the price of   apple            is Shs 10, and individual income is Shs 800 per time period and all is spent.

Quantity

Marginal utility of X

Marginal Utility of Y

10

20

30

40

50

60

70

110

100

90

80

70

60

50

190

170

150

130

120

100

80

           Required:

(i)    How many units of good X and good Y will this utility maximizing consumer buy if the level of income is Shs 14                                                                                  (3 marks)