Assuming the approval of 2020 appropriate bill in Nigeria part of the budget for fiscal year was to be distributed among the state. A) How much will each state get ? B) How much will the fifth state get?
Suppose the market of carpets is competitive. The demand for and the supply of carpets in the market have been estimated as follows: Demand: Qd = 6500 – 100P Supply: Qs = 1200P A typical firm producing carpets has a total cost function of C = 100 +
Orange Inc. is considering two mutually exclusive projects (i.e., can choose either one but not both),Alpha in Country A, and Beta in Country B. Project Alpha requests an initial investment of $300,000 and has projected annual cash flows of $20,000, $50,000, $50,000 and $350,000 over 4 years. Project Beta requests an initial investment of $88,000 and has projected cash flows of $12,000 for the first year, and then the cash flows are projected to grow at a constant rate of 5 percent per year forever. Based on the project characteristics, the company requires an 15 percent return for Project Alpha but requires an 17 percent for Project Beta. You require a 15 percent return on your investment and a payback period of 3 years.
If you apply the NPV criterion, which investment will you choose? Why? (5 marks) Based on your answer in (a) and (b), which project will you finally choose? Why? (3 marks)
1.Macroeconomics can be a difficult topic to define. For the most part, it can be defined by the specific topics with which it is concerned. Among these are output, inflation, unemployment, interest rates, and international trade. At first these topics may seem unrelated, but some thought shows that they are intimately related. a.The AD/AS model describes changes in the economy by relating real GDP (output) and the price level. (i)Compare and contrast the Keynesian portion of the AD/AS model with the classical portion of the AD/AS model, and explain how the level of production is determined in each situation. Use graphs to explain your answer. Answer:
(ii)Compare and contrast changes in aggregate demand and changes in aggregate supply in the AD/AS model. Use graphs to explain your answer. Answer:
2.The U.S. economy experienced large trade deficits in the 1980s and 1990s and tremendous economic growth in the mid- and late-1990s. b.Explain verbally the relationship between investment and long-term economic growth and describe the relationship graphically in an AD/AS graph.