Why is it not possible for all countries to follow a demand-focused (i.e. expansionary) growth strategy, given that the world can be viewed as a closed economy? - 15 marks

Rebreathing from a closed bag results in arterial hypercapnia (raised partial pressure of carbon dioxide), which stimulates respiration. Briefly explain this neural mechanism.

The concentration of --------------- formed from continuous running of motor vehicle in a closed garage can cause asphyxiation

carbon dioxide

carbon monoxide

carbonate

NH4

none

1. Assume that oil begins to run out and that extraction becomes more expensive. Trace through the effects of this on the market for oil and the market for other fuels.

As oil begins to run out and the costs of extraction rise, so the supply curve will shift (upwards) to the left. With a given demand curve, the price will rise.

Over time, as prices rise, so people and firms will increasingly try to find cheaper alternatives, such as households shifting from oil-fired central heating or electricity generating companies shifting away from oil-fired power stations. People will also try to cut down their consumption of oil by using it more efficiently or more sparingly. For example, people could switch to smaller, more fuel efficient cars and invest more money in insulating their homes to save on energy. This can be illustrated by the demand curve being further to the left in the future (given a higher price) than at the present time. Firms too will have an incentive to invest in energy efficient technology. The effect of these reductions in demand will help to dampen the rise in price.

What we are talking about here is the responsiveness of demand to the higher price. In the short run, there may be little people can do. In the long run, there may be many more opportunities for using less oil. We examine the question of responsiveness of demand in the next chapter when we consider the concept of ‘elasticity’.

If reductions in demand for oil are achieved by switching to alternatives, such as solar panels or wind turbines, so the demand for these alternatives will rise. Other things being equal, the effect of this increase in demand for alternative energy sources will increase their price. If, however, there is increased investment in developing these energy sources, their costs may come down. In other words, the increased demand may be partially, wholly or more than wholly offset by a rise in supply. The new price will be where the new demand and supply curves intersect, which may be above or below the original price depending on the relative shifts in demand and supply curves.

2. This question is concerned with the supply of oil for central heating. In each case consider whether there is a movement along the supply curve (and in which direction) or a shift in it (and whether left or right).

(a) New oil fields start up in production.

(b) The demand for central heating rises.

(c) The price of gas falls.

(d) Oil companies anticipate an upsurge in demand for central heating oil.

(e) The demand for petrol rises.

(f) New technology decreases the costs of oil refining.

(g) All oil products become more expensive.

(a) Shift right.

(b) Movement up along (as a result of a rise in price).

(c) Movement down along (as a result of a fall in price resulting from a fall in demand as people switch to gas-fire central heating).

(d) Shift left (if companies want to conserve their stocks in anticipation of a price rise).

(e) Shift right (more of a good in joint supply is produced).

(f) Shift right.

(g) Movement up along.

Carla Vista Corp.’s net income for 2020 is $140,600. The only potentially dilutive securities outstanding were 1,000 call options issued during 2019, with each option being exercisable for one share at $16. None have been exercised, and 28,700 common shares were outstanding during 2020. The average market price of the company’s shares during 2020 was $20.

QUESTIONS:

A) Calculate diluted earnings per share for the year ended December 31, 2020.

B) Assuming that the 1,000 call options were instead issued on November 1, 2020 (rather than in 2019), calculate diluted earnings per share for the year ended December 31, 2020. The average market price during the last two months of 2020 was $20.

On 1 March 2020, goods valuing $1000 were bought from Mr. D.

On 15 March 2020, goods, valued at $200, returned to Mr. D .

On 1 May 2020, goods for $2000 were sold to Mr. E.

On 15 May 2020, Mr. E returned goods, valued at $500, to the business.

On 1 June 2020, goods, valued at $600, were bought from Mr. Z on credit.

On 15 June 2020, the due amount of $800 was paid to Mr. D through cheque.

On 15 July 2020, the due amount of $1500 was received from Mr. E through cheque.

Draw the T account of Purchases, Sales, Mr. D, Mr. E, Return inwards, Return outwards, Mr. Z and Bank.

Consider the hemispherical closed surface in the figure below. The hemisphere is in a uniform magnetic field that makes an angle ? with the vertical.

(a) Calculate the magnetic flux (?B) through the flat surface S1. (Use any variable or symbol stated above along with the following as necessary: pie.)

?B = __________.

(b) Calculate the magnetic flux (?B) through the hemispherical surface S2. (Use any variable or symbol stated above along with the following as necessary: pie.)

?B =__________.

Assume that the DJIA closed at 11,875 one day recently, and the divisor was 0.12493117.

a. What is the sum of the prices of the 20 stocks in the index, given this information?

b. Assume that one stock in the index, Pfizer, moved $4.40 that day, while the index itself moved about 105 points (to close at 10,875). What percentage of the total movement in the DJIA that day was accounted for by the movement in Pfizer?

c. Now assume that one of the 20 stocks had an initial price of $47.50 and the same stock had a 4-for-1 stock split that day. What would the new divisor have to be to keep the index unchanged at 11,875?