Consider the following fitted model LGEARNˆ     = 1.31 + 0.08S + 0.02EXP + 0.001SEXP,         R2 = 0.139, (0.33)  (0.02)     (0.04)          (0.003) where the standard errors of parameter estimates are in brackets, LGEARN denotes the natural logarithm of hourly earnings measured in US $, S denotes number of years schooling, EXP […]

A researcher fitted an educational attainment model S = β1 + β2ASVABC + β3S M + β4SF + u, by regressing S, a measure of years of schooling (highest grade completed), on ASVABC, a measure of cognitive ability, SM, and SF, years of schooling (highest grade completed) of the respondents […]

Use the IS–LM model to explain both the short-run effects and the long-run effects of an increase in the money supply on national income, the interest rate, the price level, consumption, investment, and real money balances. Include graphical illustration(s) of your explanation.

Describe and discuss the difference between a 100% reserve requirements and a fractional reserve banking systems.

a) Explain the procedure a company has to follow when changing its auditors. In your discussion explain „dismissal‟ and „appointment‟ of auditors by a company? (12 marks) b) List the rights and duties of an independent auditor. (8 marks)

a) Why is an external audit necessary for companies registered under the Companies Act? Explain (5 marks) b) Under what circumstances is one ineligible for appointment as an auditor of a company? Discusss (10 marks)

The revenue of Better Option Pink Mobile Phone Company is related to advertising (a) and phones sold (q). Specifically, the relationship can be expressed as: R = q2 + 3qa + a2 However, the budget constrain on advertising and production is given by q + a = 100. Required: (i) […]

ABC Manufacturers Ltd. produces spare part for motor vehicles. The demand for this spare part is given by; d = 15 – 0.5p; where d = demand and p = price. Required: (i) Explain clearly why the coefficient of the price is negative. (2 marks) (ii) Determine the total revenue […]

The break-even point is that level of output at which revenue equals cost. Required: Graphically show the break-even point using the cost, revenue and profit functions.