UESTION THREE enya is planning to be a newly industrialized buntry by the year 2020 A.D. What obstacles e likely to impede the achievement of this ojective and what steps must be taken to vercome such obstacles? (Total: 20 marks) UESTION FOUR ) (i) Define the term cross price elasticity of mand and clearly explain its lue for substitutes and complementary ommodities. (5 marks) ) Use data in the table below to compute come elasticity through the c elasticity method: uantity Income (sh.) Price (sh.) 00 5000 16 20 6000 16 marks) Discuss any three practical applications of e concept of elasticity of emand in Management and economic policy ecision making. marks) (i) The demand for a commodity is five units hen the price is sh. 1,000 er unit. When price per unit falls to sh. 600, the emand rises to six units. ompute the point and are arc elasticity. (41. What is the MRI? fer each team? 2. What is the aggregate demand elm'e far talent (Le, the MIME, for all teams)? 3. What is the equilibrium wage and amount of talent hired? How much talent will eat'h team hire? 4. What is the prut for teams? What is the surplus for players? New suppuse that the league acts as a monepsnny: 5. What is the MFG [marginal faster host}? 6. What is the equilibrium wage and ameunt of talent hired? How much talent will each team hire? 7. What is the prot for teams? What is the surplus for players? Now suppose that the league acts as a monopanny and the players form a players union: 8. What is the allernothing demand curve for talent? What is. the allornnthing supply mm? 9. What is the wage that gives: all surplus to teams? In. What is the wage that gives all surplus tn the players? 11. Suppose the players and teams have an equal bargaining power. What is the equilibrium wage? What is player surplus and team prot? 13) Yield curves can be (a) steeply upward sloping. (b) moderately upward sloping. (c) downward sloping. (d) all of the above. (e) only (a) and (b) of the above. 14) Typically, yield curves are (a) gently upward sloping. (b) gently downward sloping. (c) flat. (d) bowl shaped. (e) mound shaped. 16) When yield curves are steeply upward sloping, (a) long-term interest rates are above short-term interest rates. (b) short-term interest rates are above long-term interest rates. (c) short-term interest rates are about the same as long-term interest rates. (d) medium-term interest rates are above both short-term and long-term interest rates. (e) medium-term interest rates are below both short-term and long-term interest rates. 15)An inverted yield curve (a) slopes up. (b] is flat. (c) slopes down. (d) has a U shape. (e) has an inverted U shape. 16) According to the expectations theory of the term structure (a) the interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds. (b) buyers of bonds do not prefer bonds of one maturity over another. (c) interest rates on bonds of different maturities move together over time. (d) all of the above. (e) only (a) and (b) of the above. 17) According to the expectations theory of the term structure (a) the interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds. (b) interest rates on bonds of different maturities move together over time. (c) buyers of bonds prefer short-term to long-term bonds. (d) all of the above. (e) only (a) and (b) of the above. 18) According to the expectations theory of the term structure (a) when the yield curve is steeply upward sloping, short-term interest rates are expected to rise in the future. (b) when the yield curve is downward sloping, short-term interest rates are expected to decline in the future. (c) buyers of bonds do not prefer bonds of one maturity over another. (d) all of the above. (e) only (a) and (b) of the above.Other receipts for the couple were as follows: Dividends (all qualified dividends) $2.500 Interest income: Union Bank $ 220 State of Idaho-interest on tax refund 22 City of Boise school bonds 1.250 Interest from U.S. savings bonds 410 (not used for educational purposes) 2017 federal income tax refund received in 2018 2,007 2017 state income tax refund received in 2018 218 Idaho lottery winnings 1.100 Casino slot machine winnings 2,250 Gambling losses at casino 6.500 Other information that the Reyeses provided for the 2018 tax year. Mortgage interest on personal residence $11.081 Loan interest on fully equipped motor home 3.010 Doctor's fee for a face-lift for Mrs. Reyes 8.800 Dentist's fee for a new dental bridge for Mr. Reyes 3,500 Vitamins for the entire family 1 10 Real estate property taxes paid $ 5,025 DMV fees on motor home (tax portion) 1.044 DMV fees on family autos (tax portion) 436 Doctors' bills for grandmother 2,960 Nursing home for grandmother 10,200 Wheelchair for grandmother 1.030 Property taxes on boat 134 Interest on personal credit card 550 Interest on loan to buy public school district bonds 270 Cash contributions to church (all the contributions 6.100 were in cash and none more than $250 at any one time) Cash contribution to man at bottom of freeway off-ramp 25 Contribution of furniture to Goodwill-cost basis 4,000 Contribution of same furniture to listed above Goodwill-fair market value 410 Tax return preparation fee for 2017 taxes 625 Required Prepare a Form 1040 and appropriate schedules, Schedule A, and Schedule B for the comple- tion of the Reyes's tax return. They do not want to contribute to the presidential election cam- paign and do not want anyone to be a third-party designee. For any missing information, make reasonable assumptions. They had qualifying health coverage at all times during the year