Reference no: EM132928940

Below are some of the questions meant to assess the student's understanding of the previous chapter/

1. A coffee roasting company has analysed its sales to determine that, on average, it sells 8,000 pounds of roasted coffee each year. They deliver roasted beans to their customers all year, with the exception of seven days in the Holidays when they, and their customers, are closed.

The roaster orders 1,000 pounds of beans at a time, and its supplier has guaranteed a 5-day lead time for any orders.

a) If the coffee roaster wants to make sure it can always have enough product for its customers, what is its remaining stock re-order point?

b) How would this figure change if the coffee roaster wanted to keep 2 days amount of buffer stock?

c) Discuss the advantages and disadvantages of keeping buffer stock in this situation.

2. Justify the need to estimate the national income in a country

3. Outline six challenges encounted by economic planners when estimating the national income in a developing country

4. Describe four policy measures that developing countries could adopt to reduce regional imbalances

5. Differentiate between nominal national output and 'real national output' figures in an economy

6. Define the term multiplier

7. Distinguish between transfer payments and transfer earnings

8. Distinguish between gross national product at market price and net national product at factor cost

9. Highlight the factors that contribute to low economic growth rates in developing countries

10. What are the main problems associated with national income accounting in developing countries