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A) identify the efficient level of production for both food and clothing. Give rationale why it is efficient level
B) discuss the possible trade offoffand opportunity cost that may be faced by this economy
C) suppose there is a drought in the economy. Graphically illustrate and explain the impact of drought in production
5. Venkatesh is a student at JGU. He has a monthly budget of Rs. 2500 to spend on either samosas, which cost Rs. 50 each, or aloo-tikki burgers, which cost Rs. 30 each.
(a): Indicate which combinations would leave some budget unspent. a) those to the left of the line in the above graph b) those to the right of the line in the above graph
(b): What is the equation for Venkatesh’s budget constraint? In your equation, use q1 as the variable to represent the quantity of samosas and q2 to represent the quantity of aloo-tikki burgers.
(c): What is the opportunity cost of a samosa?
(d). What is the opportunity cost of an aloo-tikki burger?
(e): How can one see the opportunity cost of samosa on the graph? Show it in your diagram.
5. Venkatesh is a student at JGU. He has a monthly budget of Rs. 2500 to spend on either samosas, which cost Rs. 50 each, or aloo-tikki burgers, which cost Rs. 30 each.
5a. What is the largest number of samosas that Venkatesh could afford to purchase in one month?
5b. What is the largest number of aloo-tikki burgers Venkatesh could afford to purchase in one month?
5c. Draw Venkatesh’s budget constraint. Put samosas on the x-axis and aloo-tikki burgers on the y-axis.
5d. Which combinations of samosas and aloo-tikki burgers are unaffordable? (choose 1 answer) a) Those to the left of the line in 5c. b) Those to the right of the line in 5c.
diagram.
Suppose a soap-manufacturing production process is described by the following
equation:
Y = a + b log K + с log L
Where,
Y= Output (number of soaps produced)
K=Capital
L=Labor
a, b and c are constants
Suppose 0<a<1, 0< b<1
a. Find the Marginal Product of Labor (MPL) and Marginal Product of Capital (MPK)
in the production of soap
b. Is MPL diminishing, increasing or constant as L increases?
c. Is MPK diminishing, increasing or constant as K increases?
Suppose the price ratio of two goods is 3/4 and Shubman has a budget of $100. If his budget increases to $150 and the prices of the two goods stay the same, what is the new price ratio?
inflation is a global phenomenon that is associated with high price causes decline in the value for money. it exists when the amount of money in the country is in excess of the physical volume of goods and services. Explain the reasons for this monetary phenomenon.
STATEMENT OF CHANGES IN EQUITY
- The Retrieval Company has the following changes in equity items in year-end 2020.
- Kindly prepare the SCE of the company which is owned by Ms. Charlott
Balance on January 1, 2020= ₱ 550,000
March 31: The entity earned a total of ₱ 250,000 for its first quarter of operations
June 30: The owner withdraws money worth ₱ 300,000
July 28: Ms. Charlott, the owner, invests a total of ₱ 920,000 worth of equipment in the entity.
September 22: The entity earned a total of ₱ 450,000
December 31: Total expenses paid at year end amounts to ₱ 380,000
The owner withdraws 500,000 from the business
Balance on December 31, 2020= ?
