The COVID 19 pandemic and the associated lockdown has led to an increase in aggregate prices of food in Ghana. Using your understanding of (a) the fundamental causes of inflation, (b) the aggregate demand and aggregate supply curve (LR and SR) shifts, provide your sound reasoning for why this aggregate food price increases could have happened in this season.

[30 Marks]

2.

Using the data on the Economy of Ghana provided below, answer the following questions:

Price index of Agriculture (2015=100) Constant (2015) Prices ( Billion

Ghana Cedis)

2016 2017 2018 2019 2016 2017 2018 2019

1. TOTAL AGRICULTURE 130.6 174.4 222.4 317.8 2.89 2.99 3.12 3.06

1.1 Agriculture and

Livestock 133.7 174.0 211.8 317.3 1.99 2.11 2.22 2.13

1.2 Cocoa Production and

Marketing 140.4 209.1 305.6 391.9 0.47 0.44 0.45 0.47

1.3 Forestry and Logging 108.1 144.2 174.1 244.9 0.32 0.33 0.37 0.35

1.4 Fishing 98.2 134.6 199.1 221.7 0.11 0.11 0.11 0.12

a. Compute the real growth rate in total agriculture for 2017, 2018 and 2019. Interpret your results. As an advisor to the Minister of Agriculture, what economic advice will you give him?

b. In real terms, the forestry and logging subsector grew faster than that of the fishing subsector in 2017. Do you agree with this statement? Why?

c. Compute the inflation for total agriculture for each period from 2016 to 2019.

Interpret your observations carefully.

[20 Marks]

3.

a. You have been given the following data:

Net non-business interest income 24

Government purchases 670

Corporate retained earnings 73

Gross private investment 530

Depreciation 10

Net exports -240

Personal consumption 2800

Transfer payments from government 54

Foreign factor income earned domestically 320

Personal taxes 84

Social security taxes 67

Income from foreign domestic factor sources 300

Indirect taxes 45

On the basis of these data calculate:

(i) GDP

(ii) GNP

(iii) NNP

(iv) NI

(v) PI

(vi) Disposable personal income

[20 Marks]

Show working with explanations.

b. Differentiate clearly between currency revaluation and currency appreciation.

[5 Marks]

c. Discuss five (5) of the omissions from GDP that over/undervalue Ghana’s GDP. What do these mean for Ghana’s economy? [5 Marks]

4.

a. The government of Ghana has gradually outlined measures to ease an opening of the economy. The government is eager to see the economy bounce back. Suppose the government approaches you as a consultant and indicates that they will like to have a very low unemployment, zero inflation and very high GDP growth. How would you advice the government? Be concise in your advice. [10 Marks]

b. Business cycles are pervasive in all macroeconomic variables. Does the relative durations of expansions and recessions help explain the fact that long-term economic growth has been positive?

Data for an economy.

• Population:    22.5 million
• Population under the age of 16 years: 7.5 million
• Discouraged workers: 250,000.
• Retired people: 1 million
• Structurally unemployed people: 220,000
• Frictionally unemployed people: 220,000
• Cyclically unemployed people: 2.2 million

                              

Using only these statistics above, answer the following four parts. Show full calculations.

i. What is the labour force participation rate in economy X?

ii. What is the current total unemployment rate in economy X?

iii. What is the percentage of the adult labour force that is employed?

iv. In percentage terms, how much new unemployment occurred in economy X after it went into a recession?

Assume that using the midpoint method, we calculated the price elasticity of demand for good A is 2. Hence which of the following is true if the price of good A increases by 0.1 percent?

a.

The quantity demanded of good A declines by 20 percent.

b.

The quantity demanded of good A declines from 200 to 100.

c.

The quantity demanded of good A declines by 0.05 percent.

d.

The quantity demanded of good A declines by 0.2 percent.

Which of the following best describes inelastic demand?

	a.	the price of the good responds only slightly to changes in demand.
	b.	the quantity demanded changes only slightly when the price of the good changes.
	c.	demand shifts only slightly when the price of the good changes.
	d.	buyers respond substantially to changes in the price of the good.

Suppose two goods A and B are substitutes. If the price of good B increases, which of the following is correct?

	a.	Demand for good A increases.
	b.	Demand for good A decreases.
	c.	Quantity demanded of good A decreases.
	d.	Quantity demanded of good A increases.

If a tax has been raised by 20 percent, how will the deadweight loss change?

	a.	It will increase by more than 20 percent.
	b.	It will increase but by less than 20 percent.
	c.	It will decrease by 20 percent.
	d.	It will increase by 20 percent.

If the price elasticity of demand for a good is 2, then a 6 percent increase in price results in a

	a.	3 percent decrease in the quantity demanded.
	b.	12 percent increase in the quantity demanded.
	c.	12 percent decrease in the quantity demanded.
	d.	3 percent increase in the quantity demanded.

A tax imposed on the sellers of good X will have which of the following effects.

	a.	It will increase the size of good X market.
	b.	It may increase, decrease, or generate no effect on the size of good X market.
	c.	It will decrease the size of good X market.
	d.	It will generate no effect on the size of good X market.

hich of the following would shift the demand curve for gasoline to the right?

	a.	a decrease in the expected future price of gasoline
	b.	an increase in the price of cars, a complement for gasoline
	c.	a decrease in the price of gasoline
	d.	an increase in consumer income, assuming gasoline is a normal good

Which of the following will result in the increase of equilibrium quantity for sure?

	a.	Both demand and supply increase.
	b.	Both demand and supply decrease.
	c.	Demand decreases and supply increases.
	d.	Demand increases and supply decreases.

John chooses to work 5 hours instead of going to a party. His hourly wage is $14. Find John's opportunity cost of working.

	a.	the utility he would have received had he attended the party.
	b.	$70 minus the utility he would have received from attending the party.
	c.	nothing, because he preferred working more than going to the party.
	d.	$70 from working.

Assume that using the midpoint method, we calculated the price elasticity of demand for good A is 0.75. Hence which of the following is true if the quantity demanded of good A decreases by 10 percent?

	a.	There is an increase in the price of good A from $7.50 to $10.
	b.	The price of good A will increase by 13.33 percent.
	c.	The price of good A will increase by 0.075 percent.
	d.	The price of good A will increase by 7.5 percent.

Assume that production possibilities frontier is bowed outward, and further assume that two goods are good A and good B, then how does the opportunity cost of producing more of good A change?

	a.	It may increase, decrease, or keep the same as more of good A is produced.
	b.	It will decrease as more of good A is produced.
	c.	It will increase as more of good A is produced.
	d.	It will not change as more of good A is produced.

Minimum wage would be one example of

	a.	wage subsidy.
	b.	price floor.
	c.	tax.
	d.	price ceiling.

When the price of good A is $50, the quantity demanded of good A is 600 units. When the price of good A rises to $70, the quantity demanded of good A falls to 400 units. Using the midpoint method, the price elasticity of demand for good A is

	a.	1.20, and an increase in price will result in an increase in total revenue for good A.
	b.	0.83, and an increase in price will result in an increase in total revenue for good A.
	c.	0.83, and an increase in price will result in a decrease in total revenue for good A.
	d.	1.20, and an increase in price will result in a decrease in total revenue for good A.

A movement downward and to the right along a demand curve is called a(n)

	a.	increase in quantity demanded.
	b.	decrease in demand.
	c.	decrease in quantity demanded.
	d.	increase in demand.

3. A yoga classroom faces two demand curves. The demand by local residents is Q=100-0.5P, and the demand by nonlocal residents is Q=200-0.5P. The marginal cost of serving either local or nonlocal residents is constant at $100. If the yoga classroom practices third-degree price discrimination, it will charge local and nonlocal residents a price of _____ and _____, respectively.

a. $150; $250

b. $100; $200

c. $250; $350

d. $200; $300.

How many people will they serve if they charge the same for both?

How much profit increase do they have when they switch from uniform pricing distribution?

Design a company that operates in pure monopoly conditions. When the government regulates the market within the framework of deregulation policies, whether four firms have joined the market, come together and show the monopolization of the firms operating in the same field, and show the market equilibrium price of the firms on the chart in the long run. Describe the process of change in the market.

a) Discuss what actions the Government and the RBA should take given the information in the table.

Year	Potential GDP	Real GDP	Inflation
2019	$ 1450 trillion	$1600 trillion	5%

                                                                                                                                                       

b) What could go wrong if the above-discussed policies are implemented?

Sus: P =	2	+	35	*Q
Dus: P =	54000	-	70	*D
Sc: P =	0	+	10	*Q
Dc: P =	18000	-	20	*D

Answers:

Pw =	$8,666.96
Dm=Qx=	$400.04

Just need help on figuring out how these answers were found, thanks.

Assume that notebook paper is sold in a perfectly competitive industry. The industry inverse short-run supply curve (or marginal cost curve) is P = MC = 4Q, where Q is measured in millions of reams per year. The inverse demand for notebook paper is P = 60 – 6Q. Suppose that, in their production process, paper manufacturers have been dumping waste in the nearby streams. The external marginal cost is estimated to be $1 for each ream produced. Calculate the socially optimal level of output and price for the paper industry.

Question 7 options: Socially optimal output = 5.9 million reams of paper and socially optimal price = 16.6 per ream Socially optimal output = 3.9 million reams of paper and socially optimal price = 16.6 per ream Socially optimal output = 3.9 million reams of paper and socially optimal price = 24.6 per ream Socially optimal output = 5.9 million reams of paper and socially optimal price = 24.6 per ream Question 8 (1 point) Which of the following industries is an oligopoly market?

Question 8 options: Oranges Laptops Shirts Electricity Question 9 (1 point) Suppose that the inverse market demand for oranges is given by P = $10 – 0.05Q, where P is the price of oranges and Q is quantity of oranges. Suppose that Freshfruits and Purefruits are the only two producers of oranges and they are Bertrand competitors. Both Freshfruits and Purefruits can grow oranges at a constant marginal cost of $1 per packet. Each of them sells 90 packets of oranges at a price of $1. Now suppose Freshfruits develops a new technology so that their marginal cost fall to $0.90. Which of the statement is correct?

Question 9 options: Purefruits sell 180 packets of oranges by pricing their product so as to undercut Freshfruits by the least amount possible. Freshfruits output falls to zero. Freshfruits sell 180 packets of oranges by pricing their product so as to undercut Purefruits by the least amount possible. Purefruits output still sell 90 packets of oranges. Freshfruits sell 180 packets of oranges by pricing their product so as to undercut Purefruits by the least amount possible. Purefruits output falls to zero. Both the producers still sell 90 packets of oranges.

Consider the following situation:

Two animals are competing for territory. Each animal chooses to be either Aggressive or Passive in this competition, and has the following preferences over the outcomes:

• Each animal would prefer to be Aggressive if the other is Passive: this way they win the competition and gain territory.
• Each animal would prefer to be Passive if the other is Aggressive: this way they lose territory, but they avoid a fight which would leave them injured.
• Regardless of whether an animal is Passive or Aggressive, they would prefer that their rival is Passive: dealing with an Aggressive rival costs energy and time that they could use for finding food.

Refer back to the situation in Question 4.

When modeled using game theory, how would Animal 1's preferences rank the four possible strategy profiles?

Group of answer choices

Most Preferred

      [ Choose ]            Animal 1 is Passive, Animal 2 is Aggressive            Animal 1 is Aggressive, Animal 2 is Aggressive            Animal 1 is Aggressive, Animal 2 is Passive.            Animal 1 is Passive, Animal 2 is Passive.      

2nd Most Preferred

      [ Choose ]            Animal 1 is Passive, Animal 2 is Aggressive            Animal 1 is Aggressive, Animal 2 is Aggressive            Animal 1 is Aggressive, Animal 2 is Passive.            Animal 1 is Passive, Animal 2 is Passive.      

3rd Most Preferred

      [ Choose ]            Animal 1 is Passive, Animal 2 is Aggressive            Animal 1 is Aggressive, Animal 2 is Aggressive            Animal 1 is Aggressive, Animal 2 is Passive.            Animal 1 is Passive, Animal 2 is Passive.      

Least Preferred

      [ Choose ]            Animal 1 is Passive, Animal 2 is Aggressive            Animal 1 is Aggressive, Animal 2 is Aggressive            Animal 1 is Aggressive, Animal 2 is Passive.            Animal 1 is Passive, Animal 2 is Passive.      

Refer back to the situation in Question 4.

When modeled using game theory, how would Animal 2's preferences rank the four possible strategy profiles?

Group of answer choices

Most Preferred

      [ Choose ]            (P, A)            (A, P)            (P, P)            (A, A)      

2nd Most Preferred

      [ Choose ]            (P, A)            (A, P)            (P, P)            (A, A)      

3rd Most Preferred

      [ Choose ]            (P, A)            (A, P)            (P, P)            (A, A)      

Least Preferred

      [ Choose ]            (P, A)            (A, P)            (P, P)            (A, A)      

suggestions to improve the Balance of Payment of Country?

1. Property rights and a strong titling system are seen as important to economic development because they allow:

a. loans to be taken out against the equity of their assets, increasing investment.

b. loans to be taken out without risk, increasing the quality, not quantity, of investment.

c. savers to invest in property and capital.

d. agencies with authority to verify titling to thrive in the economy.

2. Over the 1980 and 1990s, countries that were given large amounts of aid:

a. experienced growth of 1 percent regardless of the policy in place.

b. saw GDP shrink by 1 percent regardless of the policy in place.

c. saw GDP shrink by 1 percent even if they had sound policy in place.

d. experienced mixed impacts on their GDP growth.

3. Japan, Singapore, and Taiwan have all:

a. had success with import substitution policy.

b. imitated South Korea's export-led growth policy and failed.

c. imitated South Korea's import substitution policy and failed.

d. had success with export-led growth policy.

4. Successful export-led growth policy entails:

a. choosing the "right" industries to invest in.

b. blocking the "right" industries from importing to domestic markets.

c. choosing the "right" incentives to encourage exports.

d. choosing the "right" disincentives to reduce imports.

5. When governments choose to favor some industries over others, they undertake:

a. industrial espionage.

b. corporate growth policy.

c. corporate pricing policy.

d. industrial policy.

In two short paragraphs, explain why the process of industrialization is called a revolution, and summarize the effects of industrialization on the people of the era.

Use the following information to answer questions 1-4.

You have achieved a dream job working for the Toledo Mud Hens. You estimate the demand for general admission tickets as follows.

Price	Quantity
15	5000
14	6000
13	7000
12	8000
11	9000
10	10000

The marginal cost of selling a ticket is $2. Other fixed costs per game equal $5000. Finally, the seating capacity is 9000.

Question 1 (0.5 points)

What is the profit maximizing price?

Question 1 options:

	15
	14
	13
	None of the above

Question 2 (0.5 points)

What is the total cost at the profit maximizing price?

Question 2 options:

	19000
	21000
	23000
	None of the above

Question 3 (0.5 points)

Saved

What is the profit at the profit maximizing price?

Question 3 options:

	76000
	60000
	47000
	None of the above

Question 4 (0.5 points)

Suppose some new seats are added to the stadium (ignore the cost of adding these seats for the purpose of this question), and hence the capacity increases to 10000. With this new seating capacity, what price do you recommend?

Question 4 options:

	10
	11
	12
	None of the above

• 1. Rising inflation causes quantity demanded to​ decline, because​ ________.
  • households and businesses are reluctant to spend when prices rise
  • higher inflation causes the IS curve to shift to the left
  • the central bank raises the nominal interest rate by more than the increase in expected inflation
  • all of the above
  • none of the above

• 2. Based on the expectations - augmented Phillips​ curve, if the natural rate of unemployment is​ 0.06, and if the actual inflation rate exceeds the expected inflation​ rate, then the unemployment rate is
  • more than 0.06.
  • less than 0.06
  • 0.06.
  • 0.06 plus 0.5 times the difference between actual and expected inflation.

• 3. The aggregate demand curve shifts to the left when there is​ ________.
  • autonomous tightening of monetary policy
  • an increase in the nominal interest rate
  • an increase in inflation
  • all of the above
  • none of the above

• 4. In the long run​ ________.
  • there is enough time for prices to fully adjust so the classical dichotomy holds
  • the amount of output an economy can produce is determined by real variables like​ capital, labor and technological advance
  • aggregate supply is fixed at the potential level of output
  • all of the above
  • none of the above

• 5. The aggregate demand curve shifts to the right when there is​ ________.
  • a decrease in the nominal interest rate
  • a negative price shock
  • a decrease in inflation
  • all of the above
  • none of the above

• 6. If the natural rate of unemployment declines​ ________.
  • labor is more heavily utilized
  • potential output increases
  • the long run aggregate supply curve shifts to the right
  • all of the above
  • none of the above

• 7. The short-run Phillips curve is the relation between inflation and unemployment that holds for a given natural rate of unemployment and a
  • given expected level of unemployment.
  • given rate of inflation.
  • given expected rate of inflation.
  • given level of unemployment

• 8. In the long run, following a combination of a negative demand shock and a temporary negative supply shock, ________.
  • both inflation and output return to the original long−run equilibrium values
  • inflation is permanently reduced, while output returns to potential output
  • output returns to potential output, while inflation may be higher or lower than its initial value
  • inflation is permanently increased, while output returns to potential output
  • none of the above

please answer all of these.

At least three times a day during this week, perform an S-O-R black box analysis on yourself. Observe what you are doing (especially in terms of the products and services you are using or purchasing). Identify the role of the stimuli and organismic background factors in influencing these behaviors and decisions.