Macroeconomics

Q1: Zainab has a weekly budget of $48, which she likes to lavish on cases and pies. [1 Mark]

A) If the figure of a case is $8 each, what is the utmost estimate of cases she could buy in a week? 

B) If the figure of a pie is $24, what is the utmost estimate of pies she could buy in a week? 

C) Draw Zainab’s budget labor after a timeliness pies on the lifeless axis and cases on the perpendicular axis. What is the spring of the budget labor? 

D) What is Zainab’s turn consume of purchasing a pie? 

Q2: Manifold of the chattels that China’s Citizens like are effected away, and manifold of the chattels effected in the China are sold away. When chattels are effected away and sold domestically, the manner is determined import and when chattels are effected domestically and sold away, that manner is determined export. Suppose an mediocre worker in China can product one kg of soybeans in 40 minutes and one Kg of coffee in 120 minutes, timeliness an mediocre worker in Paraguay can product one kg of soybeans in 100 minutes and one kg of coffee in 150 minutes. Answer the aftercited questions. [2 Marks]

A) Which empire has the irresponsible habit in coffee? Explain.

B) Which empire should product coffee? Explain.

C) If the two countries specialize and traffic after a timeliness each other, which empire achieve significance coffee? Explain.

D) Assume that the two countries traffic after a timeliness each other and the empire significanceing coffee traffics 2 Kgs of soybeans for 1 Kg of coffee. Interpret why twain countries achieve avail from this traffic.

Q3: Illustrates the interaction (makeweight aim) of insist and afford in the chaffer for petrol inveterate on the consideration adown. And interpret aftercited conditions.    [2 Marks]

A) Show superfluity afford (remainder of petrol) and superfluity in Insist (shortage of petrol) in the similar graph and interpret.

B) Suppose the council ruled that, gone petrol is a fate, its figure should be legally capped at $1.30 per gallon. What do you intercept would be the fruit in the petrol chaffer if at this figure sum gifted in the chaffer is 575 Millions of gallons? 

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