##### Theory of Consumer Behaviour

A consumer wants to consume two goods. The prices of the two goods are Rs 4 and Rs 5 respectively. The consumer’s income is Rs 20. (i) Write down the equation of the budget line. (ii) How much of good 1 can the consumer consume if she spends her entire income on that good? (iii) How much of good 2 can she consume if she spends her entire income on that good? (iv) What is the slope of the budget line?

In: Economics

##### Compound Annual Growth Rate

If you were offered $15,000 fifteen years from now in return for an investment of$5,000 currently, what annual rate of interest would you earn if you took the offer?

In: Finance

In: Finance

##### Holding Period Return

If you bought a security at $1,000 and after one year it is sold for$1,250

What is the holding period return of the investment?

In: Finance

In: Finance

In: Finance

##### The central problems of an economy

Discuss the central problems of the economy.

The central problems of an economy are

i) What to produce?

ii) How to produce?

iii) For whom to produce?

In: Economics

##### Centrally planned economy and a market economy

Distinguish between a centrally planned economy and a market economy.

In: Economics

##### Economics

What is a production possibility frontier in terms of economics?

In: Economics