P = D1 / (k-g)
D1 = $2 (1+0.06)2 = $2.25
P = 2.25 / (0.13 0.06) = $32.14
The expected price of each share to be: $32.14
The value of the companys common stock = $32.14 x 2 million shares outstanding = $64.28
Week 5 Tutorial: Measuring GDP and Economic Growth
1. Explain the difference between gross investment and net investment.
[Note: Please read Economics by McConnell and Brue for additional references. You can get a
copy of the text in the library
Week 6 Tutorial: Economic Growth / Monitoring Jobs and Inflation
1. How does increase in savings lead to higher potential real GDP? Use the labour demand-supply
and production function diagram to illustrate your answer.
2. Is full employment ben
1. Does scarcity happen to a developed nation like USA?
2. What is the difference between capital and financial capital.
3. With reference to Apple company, explain scarcity, choices and opportunity costs.
Week 10 Tutorial: Expenditure Multipliers The Keynesian Model
1. If the country faces high inflation, explain how a fiscal policy can be used to solve the problem.
Use an AE-Output diagram to support your answer.
2. Imagine a 3-sector economy.
Week 9 Tutorial: Expenditure Multipliers The Keynesian Model
1. You are given the following consumption function: Y = $500 + 0.8Yd. If disposable income equals
$5,000, determine the average propensity to consume.
2. Briefly explain how each of t
Week 2 Tutorial:
1. The information in the table below illustrates the production possibilities curve of a
Pizza produced Bottles of Coke produced
Chapter 3 :
Understand how relative commodity prices and the
comparative advantage of nations are determined
under increasing costs
Show the basis and the gains from trade under
Ms. Reanne Ho
Lecture Time :
Dominick Salvatore (2013) , International Economics, 11th Edition, Wiley.
Textbook details are available online from
Week 11 Tutorial: Monetary System
1. Suppose the T-Account for ANZ (a commercial bank in Australia) is as follows:
Currently, the bank does not hold any excess reserves.
a) What is the
Week 2 Tutorial: (Answer)
Production Possibilities Curve of The Country
Bottles of Coke produced per hour
Pizza produced per hour
(ii) (a) The combination of 3 pizzas and
Tutorial 1: (Answer)
1. Yes, scarcity happens to all nations including a developed nation like USA. There is no
exception to any of the countries as long as the resources in the world are limited and the
human wants are unlimited,
1. Price and aggregate quantity demanded are negatively related. Briefly explain why
with reference to the following effects:
Real balance effect
Foreign purchases effect
[Use the additional reading materials pr
1. With the aid of examples in your daily life, briefly explain the THREE (3) functions
Money is any good that is widely accepted in exchange of goods and services. The
three functions of money are medium of exchange, store of value a
1. Apple Inc. decides to make iTunes freely available in unlimited quantities.
a) Does Apples decision change the incentives that people face?
b) Is Apples decision an example of a microeconomic or a macroeconomic issue?
a) Yes. Apples d
Fill in the missing values of the following table. Show your workings.
Labour force participation rate = Labour force/Working-age population x100%
= Labour force/235,900 x100%
Unemployment rate = Unemployment/Labour
1. Identify a substitute of your product and explain what happens to the demand of
the product when the price of the substitute increases.
The product that I have chosen is Nike shoes. Substitute goods of the product
chosen is Adidas shoes. Law
IMPORTANCE OF ETHICS AND MORALITY
Ethics and Morality are very important aspects in our world. First of all, I would
like to explain about Ethics. Ethics known as moral philosophy which is a branch of
philosophy that involves systematizing, protecting and
Process of constructing columns
All concrete columns must rest at top of a suitable footing or a foundation which is big
enough to accommodate their weight but never on loose earth. If there have separate columns on
the site, each must have a footing not
296 9%? ‘i‘klEEEE MONEY, BANKING, AND MONETARY POLICY
HOW BANKS CREATE MONEY €§iﬂ$7§2§ 21% 297
Of course, when the securities dealer draws and
clears a check for $50,000 against the Wahoo bank,
the bank loses both reserves and deposits in that
1. Calculate for July 2012
2. (a) What type of unem
(a) The unemployment rate
Unemployment rate = Number of people unemployed x 100
(b) The employment-to-population ratio
1) How does market adjust itself when there is a shortage? When there is a surplus?
When there is a shortage, the producer will increase the aggregate quantity supplied with high price which
will affect the buyers to buy less and decrease the aggregate qu
ECON 101: Tutorial 1 What is Economics?
1. Assume that WonderGirls, a Korean group, were to give free tickets away to a concert
which they want to hold in Kuala Lumpur. Are the tickets really free? Briefly explain.
2. How does the successful Avengers movi
1. a) What is the name of the crisis that happened? When did it happen and how did it
Like its name, the US Housing bubble did not happen in an instant. Bubbles form when there
are rapid price increases driven by irrational decisions and these bub
THE AGE OF REFORM
Roots of Progressivism
1. Meaning of Progressivism a cluster of movements for various forms of
2. Factors that caused Progressivism: Fight against corruption & inefficiency in government
Large corporations & thei
THE NEW DEAL: 1933 1941
The Hundred Days
1. Economy Act first measure
Reduced the salaries of federal employees by 15%
Cut various veterans benefits
Declared a nationwide bank holiday
Embargo on the exportation of gold
FROM ISOLATION TO EMPIRE
Origins of the Large Policy: Coveting Colonies
1. U.S. interest in world affair gradually increased
2. 1866 intervened in Mexico
France established a protectorate over Mexico
U.S. demanded that French withdrew their t
FROM NORMALCY TO ECONOMIC COLLAPSE:
1921 - 1933
The Harding Scandals
1. President Warren G. Harding appointed a few officials known as the Ohio
They are corrupted
involved in financial scandals
2. worst scandal was the oil scandal in 192
CHAPTER 23 THE GREAT WAR
Europe Explodes in War
1. June 28, 1914, Archduke Franz Ferdinand, heir to Austria-Hungary was
Assassinated in Sarajevo
Assassinated by Gavrilo Princip a member of Black Hand a Serbian
Note to students:
This exam paper has
six amendments for
2009/10 & later cohorts.
Key answers are
appended at the end of
the question paper.
NATIONAL UNIVERSITY OF SINGAPORE
Semester 1 (2007/2008) Examinations