Questions
Explain the relationship between South Africa and its neighbors in regards to trade, transportation and investment.

Explain the relationship between South Africa and its neighbors in regards to trade, transportation and investment.

In: Economics

Suppose you have some money to invest-for simplicity, $1-and are planning to put a fraction w...

Suppose you have some money to invest-for simplicity, $1-and are planning to put a fraction w into a stock market mutual fund and the rest ( 1− w ), into a bond mutual fund. Suppose that a $1 invested in a stock fund yields ??after one year and a $1 invested in a bond fund yields Rb . ?? and Rb are random variables with expected value of 9% and 7% respectively, and standard deviation of 4% and 2% respectively. The correlation between ?? and Rb is 0.75. If you place a fraction w of your money in the stock fund and the rest ( 1− w ), in the bond fund then the return on your investment will be R wRs w Rb = + (1− ) . The risk associated with your investment is measured by the standard deviation. a. If you decide to invest 60% of your $1 in stock and the rest in bond, then what is the expected return of your investment? What is its associated risk? B. What share of your $1 money should you invest in stock in order to expect a 8.6% return on your investment? For that same share i.e. invested in stock, what level of risk is associated with your investment? C. What share of your $1 money should you invest in stock mutual fund in order for your investment risk to be 3%? (you can show your work using algebra, or calculus).

In: Economics

Does Ford Motor reward or punish ethical integrity and moral courage if it has a negative...

Does Ford Motor reward or punish ethical integrity and moral courage if it has a negative impact on the bottom line? [200 word or more][Will give thumbs up]

In: Economics

Describe why the work of Sheldon and Eleanor Glueck had such a great influence on developmental...

Describe why the work of Sheldon and Eleanor Glueck had such a great influence on developmental theory. Explain your view on the value of their work as it applies to problems with delinquency today.

In: Economics

At Ford Motor, do decisions consider fairness from stakeholder perspectives? [200 words or more, please][Will give...

At Ford Motor, do decisions consider fairness from stakeholder perspectives? [200 words or more, please][Will give thumbs up]

In: Economics

200 Words Response Discuss different modes of currency risk and how each should be managed.

200 Words Response

Discuss different modes of currency risk and how each should be managed.

In: Economics

Q1 Minimum efficient scale is defined as the level of output at which A) all economies...

Q1 Minimum efficient scale is defined as the level of output at which

A) all economies of scale are exhausted
B). diminishing returns affect average total cost
C). the firm's long - run average total cost starts falling .
D)the maximum output is produced .


Q2 If , when a firm doubles all its inputs , its average cost of production decreases , then production displays

A)diseconomies of scale .
B)diminishing returns
C). economies of scale .
D)declining fixed costs .

Q3 An avocado orchard employs five full - time workers . Currently , the average product of labor is 120 pounds of avocados per day . The orchard hires a 6th full - time worker and his marginal product is 150 pounds of avocados . The average product of the six workers will now be

A)more than 120 pounds
B). greater than the marginal product of labor
C). equal to 120 pounds
D) . less than 120 pounds

Q4 Suppose you have just opened a store to sell espresso machines . Both you and a competing store buy this machine from a manufacturer for $ 130 each . Your competitor who has a store of the same size as yours currently selling about 10 machines a month at a price of 200 per machine . You expect to sell about 6 machines a month at a price of $ 220 per machine . If you lower your price , you expect to make a loss . Which of the following could explain why your competitor is able to profitably sell the machine at a lower price although the cost of purchasing the machine is the same for the both of you ?

A)The competing store's goal is to maximize revenue and not profit .
B)The competing store probably has a lower marginal cost of production .
C)The competing store probably has a lower average variable cost of production
D)The competing store probably has a lower average cost because average fixed cost falls as output increases .

Q5 In the short run , why does a production function eventually display diminishing returns to labor ?

A)The opportunity cost of hiring additional workers must eventually rise .
B)As the number of workers increases it becomes difficult to monitor them .
C)As a firm hires more workers the skills and the work ethic of the additional workers will eventually decline . D)As the number of workers increases eventually the gains from the division of labor and specialization are used up

Q6 Which of the following statements correctly describes the distinction between technology and technological change ?

A)Technology refers to the processes used by a firm to transform inputs into output of goods and services while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs .

B)Technology is product - centered : its refers to developing new products with limited resources while technological change is process - centered in that it focuses on developing new production techniques .

C)Technology refers to the ability of a firm to increase its maximum output from a given quantity of inputs and technological change is the process by which the firm achieves this productivity gain

D)Technology involves research and development while technological change involves the use of more efficient machinery .


Q7 Stan owns a software design business . He obtained a bank loan to buy computer equipment for his business . He pays $ 1.000 per month for interest on the loan . He has 10 employees , each of whom is paid $ 4,000 per month . Because his business has been successful , next month he will increase employee wages to $ 5,000 . If the revenue from his business remains at its current level Stan is considering an addition to his office . Which of the following statements regarding Stan's business is false ?

A)The payments Stan makes to his employees are variable costs and explicit costs .
B)The monthly payment Stan makes for his bank loan is a fixed cost
. C)The time and effort Stan spends on his software design business is an implicit cost
D)The monthly payment Stan makes for his bank loan is an implicit cost .

Q8 four workers can produce 18 chairs a day and five can produce 20 chairs a day, the marginal product of the fifth worker is

A)2 chairs.
B)3 chairs .
C)4 chairs.
D)38 chairs .

Q9 Which of the following costs will not change as output changes ?

A)average fixed cost
B)average variable cost
C)total variable cost
D)total fixed cost
E)marginal cost

Q10 Implicit costs can be defined as

A)total cost minus fixed costs .
B)the deferred cost of production .
C)accounting profit minus explicit cost
D). the non - monetary opportunity cost of using the firm's own resources .

Q11 In the short run , if marginal product is at its maximum ,

A)then average cost is at its minimum .
B)average variable cost is at its minimum .
C)total cost is at its maximum .
D)marginal cost is at its minimum .

Q12 Average total cost is

A)the change in fixed plus variable cost divided by the quantity of output produced
B). total explicit costs divided by the quantity of output produced
C). variable cost divided by the quantity of output produced
D). total cost divided by the quantity of output produced .

Q13 Which of the following statements is true ?

A)Opportunity cost = explicit cost - implicit cost
B). Total cost = fixed cost + implicit cost
C). Total cost = fixed cost + variable cost
D)Variable cost = wages + salaries + benefits .


When a firm produces 50,000 units of output its total cost equals $6.5 million . When it increases its production to 70,000 units of output its total cost increases to $9.4 million . Within this range the marginal cost of an additional unit of output is

A) $ 41.43
B) $ 135
C) $134.29
D) $145

In: Economics

Global Supply Chains have been hit extensively by the Coronavirus SARS-CoV-2 (COVID19) pandemic affecting Global trade...

Global Supply Chains have been hit extensively by the Coronavirus SARS-CoV-2 (COVID19) pandemic affecting Global trade and Investment at an unprecedented speed and scale. This has been worsened by the reliance on China for most supplies causing most governments, businesses, institutions, and individual consumers with unprecedented shortages. The effect has been predicted to last for a few years.

The current situation calls for a radical change in procurement and modeling of supply chains. You are to recommend the critical change that either a public sector organization, Multinational company or a local firm needs in the management of their procurement strategies and processes taking cognizance of their Supply chains. You must factor in the relevant theories, strategies and tools in your recommendation.

In: Economics

In the United States, price floors are commonly used to support farmers, such as for dairy...

In the United States, price floors are commonly used to support farmers, such as for dairy products. Assume several U.S. trading partners impose tariffs on dairy products exported from the United States. The tariffs are effective and are reducing dairy exports from the United States and have pushed the domestic equilibrium price of milk below the price floor. Using a supply and demand model, illustrate what happens to the U.S. domestic price of milk, quantity of milk sold in the United States, and any surplus or shortage of milk. Be sure to support your graph with a written explanation.

In: Economics

An inferior good has a ______________________. Positive price elasticity of demand b) Negative price elasticity of...

  1. An inferior good has a ______________________.
  1. Positive price elasticity of demand b) Negative price elasticity of demand c) Negative Income elasticity of demand d) Positive income elasticity of demand
  1. A movement down the demand curve is a(n):
  1. A decrease in quantity demanded b) an increase in quantity demanded c) an increase in demand d) a decrease in demand
  1. When a market is at equilibrium,
  1. There are no shortages or surpluses b) the price is a fair price c) all consumers can afford the good d) all the above are correct
  1. If the demand for peanuts increases,
  1. The quantity supplied of peanuts will decrease b) the supply of peanuts will decrease
  2. The supply of peanuts will increase d) none of the above are correct
  1. A change in a firm’s input costs affect:
  1. Supply b) demand c) both supply and demand d) neither supply nor demand
  1. A market price will exceed its equilibrium price if the government institutes a:
  1. Price floor b) Price ceiling c) an asymmetric target price d) all the above
  1. An example of a price ceiling is:
  1. Food stamps b) education scholarships c) rent control d) agricultural subsidies
  1. “All else held constant” is stated with the phrase:
  1. E pluribus Unum b) De gustibus non est disputadum c) ceteris paribus d) coitus acetum
  1. The price elasticity of supply for a product must be:
  1. Negative b) positive c) greater than one d) smaller than the price elasticity of demand
  1. If the price elasticity of demand is perfectly inelastic, the demand curve will be:
  1. Vertical b) Horizontal c) Positively Sloped d) Negatively Sloped
  1. A price ceiling above a market’s equilibrium price:
  1. Creates a shortage b) creates a surplus c) does nothing d) performs price discovery
  1. If there is greater quantity supplied than there is quantity demanded at a given price in a market, the price will: a) rise b) fall c) remain the same d) inadequate information to say
  1. If a product has a high price elasticity of demand and a high-income elasticity of demand, the product is likely a: a) necessity b) substitute c) luxury d) small solar powered flashlight
  1. A highly elastic price elasticity of demand generally means that a good is:
  1. Necessary b) very substitutable c) inexpensive d) rarely bought and sold
  1. A pair of goods are substitutes if their cross-price elasticity of demand is:
  1. Positive b) negative c) zero d) one

In: Economics

Explain the relationship that exists between China and Taiwan. How did it start? What happened to...

Explain the relationship that exists between China and Taiwan. How did it start? What happened to change the relationship and how/why did that happen?  

In: Economics

Discuss Rees’ Spillover Effect, and outline the specific assumptions he makes in order to achieve his...

Discuss Rees’ Spillover Effect, and outline the specific assumptions he makes in order to achieve his results. Use diagrams where necessary.

In: Economics

.  Suppose a monopoly faces inverse market demand P = 600 – 0.01Q, and that the firm’s...

.  Suppose a monopoly faces inverse market demand P = 600 – 0.01Q, and that the firm’s total cost curve is C = 2,500,000 + 10Q + 0.015Q2.

  1. Find the firm’s profit-maximizing price and output PM, QMand sketch the equilibrium.  
  2. Find the firm’s ATC formula.  What is the ATC at the output level you found in part a?
  3. Add the ATC to your graph and indicate the firm’s profit.  What is the total profit?
  4. What is the per unit profit at QM?  Explain why it does not make sense to produce more output when the average cost is so far below the price at QM.
  5. Find the firm’s Lerner index at PM, QM. What does the number tell you?
  6. Suppose the government levies an 8% tax on profits.  Does this tax alter the monopoly’s price-output choice? Explain why or why not.

In: Economics

This is a Global Economic question. how trade policies and economic variables are impacting worldwide operations...

This is a Global Economic question. how trade policies and economic variables are impacting worldwide operations from a tactical and strategic perspective and base on that evaluation how to make economic predictions and recommendations for an organization to proceed in future.

In: Economics

Sample questions for Econ 3308-W 2020 8.if there’s a health care lesson from Europe, it’s that...

Sample questions for Econ 3308-W 2020

8.if there’s a health care lesson from Europe, it’s that we can and should have a much broader scope of public health coverage in Canada. Evidence shows that we can have a more just, equitable and comprehensive universal health care system that costs less and provides higher quality care for all. Comment.

In: Economics