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If a household’s income falls from R20 000 to R17 000 and its consumption falls from R18 000 to R15 000, then its… a. marginal propensity to consume is -0,67. b. marginal propensity to consume is 0,88. c. marginal propensity to consume is 0,20. d. marginal propensity to save is zero. e. marginal propensity to save is 0,12.

Answer: Marginal Propensity to Consume (MPC) The marginal propensity to consume (MPC) is a measure of the proportion of an increase in income that is spent on consumption. It is calculated by dividing the change in consumption (ΔC) by the

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If the government intervenes to address the issues mentioned in paragraph 2 of the case study, the result will include _____. (i) increased expenditure on public goods and services (ii) pressure on government spending, particularly in basic infrastructure, housing, and the maintenance of law and order (iii) increased aggregate spending, illustrated by a downward shift of the aggregate spending curve in the Keynesian model and a rightward shift of the aggregate demand curve in the AD-AS model a. (i), (ii), and (iii) b. (ii) and (iii) c. (ii) d. (i) and (iii) e. (ii) and (i)

Answer: The Result of Government Intervention If the government intervenes to address the issues mentioned in paragraph 2 of the case study, the result will include (i) increased expenditure on public goods and services, (ii) pressure on government spending, particularly

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Time left 2:00:05 Question 24 Not yet answered Marked out of 1.00 Flag question Question text Graph Which of the following is correct regarding the figure above? a. The aggregate supply increases due to the fall in the tax rate. b. The aggregate supply increases due to the fall in the tax rate. c. The graph shows an increasing AS curve, due to increase in output produced from some number of available inputs. d. The graph shows an increase in AS, as a results of an increase in net exports.

Answer: What is Shown in the Figure Above? The figure above is a graph that shows an aggregate supply (AS) curve. This curve shows the relationship between the quantity of real output produced and the price level in an economy.

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Which one of the following factors does not account for increased unemployment in South Africa? a. an increase in labour intensity of production. b. an increase in immigration. c. an increase in the cost of employing labour. d. a rapid increase in population growth.

Answer: Unemployment in South Africa South Africa is currently facing an unemployment crisis, with the rate of unemployment being at its highest level since 2003. This has been attributed to a number of factors, including an increase in labour intensity

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Which one of the following implies an improvement in the economic wellbeing of the people of a country? a. The nominal GDP increased by 10%, while the price level increased by 12% and there was no increase in the population. b. The nominal GDP increased by 6%, while the price level increased by 6% and the population increased by 1%. c. The real GDP increased mainly due to an increase in defence expenditure. d. The increase in the real GDP of 10% is distributed evenly amongst the population of a country, which grew by 1%

Answer: Which one of the following implies an improvement in the economic wellbeing of the people of a country? The correct answer is b, as the nominal GDP increased by 6%, while the price level increased by 6% and the

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The appropriate policy to combat cost-push inflation would be to increase ______, which will be illustrated by __________. a. interest rates; leftward shift of the aggregate demand curve b. government spending; rightward shift of the aggregate demand curve c. productivity; rightward shift of the aggregate supply curve d. wages; leftward shift of the aggregate supply curve

Answer: Appropriate Policy to Combat Cost-Push Inflation The appropriate policy to combat cost-push inflation is to increase interest rates, which will be illustrated by a leftward shift of the aggregate demand curve. Cost-push inflation is caused by an increase in

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The expansion of the infrastructure is necessary to serve the continent. We would definitely require support in that context to expand the infrastructure. So, if we need to take 100 or more students (on a long course) at one go, we can do that.” In terms of the AD-AS framework, the planned expansion of infrastructure will____________ a. Shift the AD-curve to the right. b. Shift the AS-curve to the left. c. Cause a movement along the AD-curve. d. Cause a downward movement along the AS-curve.

Answer: The expansion of infrastructure in order to serve the continent is a key factor in the AD-AS framework. The expansion of infrastructure will cause a shift in the AD, or aggregate demand, curve to the right. This will increase

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Saretec has received financial assistance from Germany, to develop a wind turbine tower, rooftop solar panels, and storage batteries. This will lead to a( n) _____. a. increase in spending in the circular flow of income and spending in the economy of South Africa b. decrease in spending which reduces income and spending from the circular flow of the South African economy c. reduction of total expenditure from the circular flow of income and spending in the economy of South Africa d. direct injection into South Africa’s goods market.

Answer: The Financial Assistance from Germany to Saretec Increases Spending and Injects Money into South African Goods Market The financial assistance from Germany to Saretec to develop a wind turbine tower, rooftop solar panels, and storage batteries will lead to

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Saretec was to receive about €10 million of the $8.5 billion pledged funds. At an exchange rate of €1 = R20.90, Saretec was to receive Answer rand. (Answer hint: Type in numbers only without spaces in between. Round to two decimals. E.g., 25000050.59)

Answer: Saretec was to receive R209,000,000.00 of the $8.5 billion pledged funds, at an exchange rate of €1 = R20.90. Calculations The exchange rate of €1 = R20.90 is used to convert the €10 million to Rand. 10 million Euros

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A tax system is progressive if … a. an increase in tax causes prices to increase, but wages to fall. b. the average tax rate increases as taxable income decreases. c. an increase in taxable income causes an increase in tax paid. d. the marginal tax rate increases while the average tax rate decreases

Answer: What is a Progressive Tax System? A progressive tax system is a type of taxation in which the rate of taxation increases as the amount of taxable income increases. The rate of taxation may increase in increments as income

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The following question is based on the table below, which shows the GDP at current prices of country A for the years 1 and 2. Q13 Which of the following statements are correct? a. The increase in GDP from year 1 to year 2 can be the result of an increase in the general price level. b. The increase in GDP from year 1 to year 2 can be the result of an increase in production. c. From the given information, it is impossible to tell whether the 10% increase in GDP from year 1 to year 2 represents economic growth. a. All the statements are correct. b. a and b c. b and c d. a and c e. a

Answer: GDP Increase From Year 1 to Year 2 The GDP at current prices of country A for the years 1 and 2 shows that there was a 10% increase in GDP from year 1 to year 2. This increase

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Which of the following statements regarding the financial account in the balance of payments is correct? a. Direct investment includes short-term credit used to finance imports and exports. b. When outflows of foreign capital exceed inflows of foreign capital, there is a financial account surplus. c. Portfolio investment refers to the purchase of assets such as shares or bonds, where investors are only interested in the expected financial returns. d. The balance on the financial account is calculated by only adding net direct investment and change in reserve assets.

Answer: Financial Account in the Balance of Payments The financial account in the balance of payments measures the net change in international ownership of financial assets. It includes such items as foreign direct investment, portfolio investment, and changes in reserves.

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Suppose the SARB increases repo rate in an attempt to curb inflation. As a result the…. a. creation of money will slow down as demand for loans declines. b. quantity of money supply will increase by percentage increase of repo rate. c. cost of borrowing charged by banks will decrease. d. price of interest-bearing securities or bonds in South Africa will increase.

Answer: SARB Increasing Repo Rate to Curb Inflation The South African Reserve Bank (SARB) increasing the repo rate is an attempt to curb inflation. When the repo rate is increased, the creation of money slows down as the demand for

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Suppose the South African government has just issued treasury bills worth R50 million through the South African bond exchange market. This scenario is concerned with a. indirect financing of a real transaction. b. direct financing of a financial transaction. c. indirect financing of a financial transaction. d. direct financing of a real transaction.

Answer: What is a South African Bond Exchange Market? A South African bond exchange market is a market where governments, corporations, and other entities can issue debt securities in the form of bonds. These bonds can then be bought and

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In the circular flow of income and spending, that is, the basic flow of income and spending between households and firms supplemented by the foreign, financial and government sectors… a. exports are leakages from the circular flow. b. investment is a leakage from the circular flow. c. savings are injections into the circular flow. d. imports are injections into the circular flow. e. taxes are leakages from the circular flow.

Answer: Circular Flow of Income and Spending The circular flow of income and spending is a basic model of the economy that shows the flow of spending and income between households and firms supplemented by the foreign, financial and government

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Economic theory suggests that two countries can benefit from trade even if one country is more efficient at producing everything. What concept does this theory describe? a. opportunity cost b. comparative advantage c. absolute advantage d. production possibility frontier

Answer: Comparative Advantage Economics theory suggests that two countries can benefit from trade even if one country is more efficient at producing everything. This theory describes the concept of comparative advantage. Comparative advantage is the ability of a party (an

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Which of the following are rewards of the factors of production? a. Rent, labour, natural resources, interest b. Entrepreneur, firms, capital, labour c. Profit, labour, land, household d. Salaries and wages, interest, rent, profit

Factors of Production The four factors of production are land, labour, capital and entrepreneurship. Land refers to all natural resources, such as minerals, forests, water, and fertile land used in production. Labour refers to the people employed by a business

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Country A can produce 20 units of maize or 10 units of bananas. Country B can produce 30 units of maize or 20 units of bananas. Assuming constant opportunity costs, which of the following statements are correct? a. Country B has an absolute advantage in the production of maize. b. Country B has an absolute advantage in the production of bananas. c. Country A has a relative advantage in the production of bananas.

Answer: Comparisons of Production Between Countries A and B Country A and B have different opportunities for production. Country A can produce 20 units of maize or 10 units of bananas, while Country B can produce 30 units of maize

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Which one of the following statements on nationalisation and privatisation is correct? a. Nationalisation is the transfer of ownership from the public sector to the private sector. b. Privatisation is the transfer of ownership from private enterprise to government. c. One of the arguments in favour of privatisation is that the privatised firm may attract direct foreign investment. d. Commercialisation the same as privatisation.

Answer: Nationalisation and Privatisation Nationalisation and privatisation are two different processes of ownership transfer. Nationalisation is the transfer of ownership from the private sector to the public sector. On the other hand, privatisation is the transfer of ownership from the

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Suppose Archibald is a producer of Christmas trees with the following production function: Q(L, A) =4L0.75A, with L the labour in hours per week, A the area farmed by Archibald in acres Q the quantity of Christmas trees produced. The marginal product of labour is given by MPL = 3AL0.25 and the marginal product of the land is given by MPA = 4L0.75. The hourly wage W is £10 per hour and the rental rent of land, r, is £12 per acre. . a) Does the production function exhibit constant, decreasing or increasing returns to scale? Justify your answer. b) Suppose that in the short-run, Archibald is planting trees on 50 acres of land. How many hours does he have to work to produce 1000 Christmas trees? c) How much does it cost him to produce these 1000 trees on 50 acres of land? d) Find the expression of the marginal rate of technical substitution of L for A, 𝑀𝑅𝑇𝑆𝐿𝐴, as a function of L and A. e) When Archibald is producing 1000 trees on 50 acres, is he minimizing his cost? In the long-run, what will be his inputs choice to minimize his costs when producing 1000trees?

Answer: Does the Production Function Exhibit Constant, Decreasing, or Increasing Returns to Scale? The production function exhibits increasing returns to scale. This is because when inputs of labour (L) and land (A) are increased, the output (Q) increases by a

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Suppose Archibald is a producer of Christmas trees with the following production function: Q(L, A) =4L0.75A, with L the labour in hours per week, A the area farmed by Archibald in acres Q the quantity of Christmas trees produced. The marginal product of labour is given by MPL = 3AL0.25 and the marginal product of the land is given by MPA = 4L0.75. The hourly wage W is £10 per hour and the rental rent of land, r, is £12 per acre. . a) Does the production function exhibit constant, decreasing or increasing returns to scale? Justify your answer. b) Suppose that in the short-run, Archibald is planting trees on 50 acres of land. How many hours does he have to work to produce 1000 Christmas trees? c) How much does it cost him to produce these 1000 trees on 50 acres of land? d) Find the expression of the marginal rate of technical substitution of L for A, 𝑀𝑅𝑇𝑆𝐿𝐴, as a function of L and A. e) When Archibald is producing 1000 trees on 50 acres, is he minimizing his cost? In the long-run, what will be his inputs choice to minimize his costs when producing 1000trees?

Answer: Does the production function exhibit constant, decreasing or increasing returns to scale? Justify your answer. The production function given exhibits increasing returns to scale. This is because the output increases at a faster rate than the inputs, meaning that

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Given the Cobb-Douglas production function, Q = 20 L0.5 K0.5, the wage rate for labor is birr 5 and the rental price of capital is birr 10. If the firm allocates total outlay of 1000 birr, A. Calculate the optimal units of labor and capital that maximize production. B. Is the production function homogeneous? If so, identify the nature of the returns to scale. C. Calculate the maximum output at the equilibrium point. D. Compute the MRTSLK at the equilibrium point.

Answer The Cobb-Douglas production function, Q = 20 L0.5 K0.5, is a mathematical equation that represents the relationship between inputs and output in a production process. The wage rate for labor is birr 5 and the rental price of capital

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8. Consider the following total cost function: TC = 2/3Q3 – 10Q2 + 200Q + 50 A) Identify the FC and VC function? B) Calculate AVC, AFC, ATC, and MC functions C) Determine the level of output at which AVC reaches minimum point and the minimum AVC at that level of output?

Answer: Total Cost Function Given the total cost function TC = 2/3Q3 – 10Q2 + 200Q + 50, the marginal cost (MC) and the average total cost (ATC) can be calculated. Additionally, the fixed cost (FC) and variable cost (VC)

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7. Suppose the Cobb-Douglas production function Q = 20 L^0.5 K^0.5, Assume also that the wage rate for labor and rental price of capital are birr 5 and birr 10, respectively. If the firm allocates total outlay of 1000 birr A. Calculate the optimal units of labor and capital that maximize production. B. Is the production function homogeneous? If so, identify the nature of the returns to scale. C. Calculate the maximum output at the equilibrium point. D. Compute the MRTSLK at the equilibrium point.

Answer: Calculating the Optimal Units of Labor and Capital Given the Cobb-Douglas production function, Q = 20 L0.5 K0.5, the wage rate for labor is birr 5 and the rental price of capital is birr 10. If the firm allocates

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Розрахувати згідно з методикою Манківа природний рівень безробіття за таких умов: чисельність зайнятих = 20 мільйонів осіб, чисельність звільнених = 200 тисяч осіб, чисельність безробітних = 1 мільйон осіб, чисельність працевлаштованих = 200 тисяч чол.

Answer: Calculating the Natural Unemployment Rate According to the Mankeiv Method The natural unemployment rate can be calculated according to the Mankeiv Method with the given conditions. These conditions are: number of employed is 20 million people, number of unemployed

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Розрахувати згідно з методикою Манківа природний рівень безробіття за таких умов: чисельність зайнятих = 20 млн. осіб, чисельність звільнених = 200 тис. осіб, чисельність безробітних = 1 млн. осіб, чисельність працевлаштованих = 200 тис. чол.

Answer: What is the Natural Unemployment Rate According to the Manckiw Method? The natural unemployment rate is the rate at which unemployment would be at when the economy is at its potential, or when the aggregate demand is in balance

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Розрахувати темп інфляції у періоді t за таких умов: реальний ВВП у періоді t -1 = 400 млрд. грн.; у періоді t = 420 млрд. грн.; номінальний ВВП у періоді t -1 = 440 млрд. грн.; у періоді t = 483 млрд. грн.

Answer: How to Calculate Inflation Rate in Period t In order to calculate the inflation rate in period t, you will need to know the real Gross Domestic Product (GDP) in both period t-1 and t, as well as the

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Write about how country life is better. Your response should be 4 paragraphs, which means approximately 16-20 sentences. Support your answer with examples and details. Always write in complete sentences. Check carefully for periods and capitalization. Indent the first sentence of each paragraph.

Advantages of Country Life Living in the country has various advantages that city life cannot offer. The fresh air, the lack of noise, and the peacefulness of the outdoors are all aspects of country life that make it better than

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What makes for the best life lived? Would you say that living in a city (urban) or living in nature (rural) results in a happier life overall? ✏ Your response should be 4 paragraphs, which means approximately 16-20 sentences. ✏ Support your answer with examples and details. ✏ Always write in complete sentences. Check carefully for periods and capitalization. Indent the first sentence of each paragraph.

Answer: What Makes for the Best Life Lived? Living a good life is about more than simply existing and surviving. It is about finding a balance between work and leisure, embracing challenges, and taking joy in the little things. A

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A small business owner earns $50,000 in revenue annually. The explicit annual costs equal $30,000. The owner could work for someone else and earn $25,000 annually. The owner’s business profit is ________ and the economic profit is ________. Question 2 a) In a graph, show the cost curves of a representative firm in long-run equilibrium alongside the corresponding market equilibrium. b) Suppose there is a decrease in the demand for this product. In the graph drawn for part (a), show the shift in demand in the market for this product and the corresponding profit or loss on the cost curves of the representative firm. c) In a graph, show the adjustment that takes place in order to return the market and firm to long-run equilibrium. d) After the market has returned to long-run equilibrium, is the price higher, lower, or the same as the initial price? Are there more, fewer, or the same number of firms producing in the market? Question 3 A firm will continue producing in the short run even if it is making a loss, providing it can cover its variable costs. Explain why. Just how long will it be willing to continue making such a loss? Question 4 The following diagram shows the cost curves of a firm under perfect competition. a) How much will the firm produce in order to maximise profits at a price of £8 per unit? b) What will be its average cost of production at this output? c) How much (supernormal) profit will it make? d) How much will the firm produce in order to maximise profits at a price 0 1 2 3 4 5 6 7 8 9 10 11 12 0 10 20 30 40 50 60 70 80 90 100 M C M C A C A VC £ Q uantity

Answer: The Profit and Economic Profit of a Small Business Owner The profit of a small business owner earning $50,000 in revenue annually with explicit costs totaling $30,000 is $20,000. The economic profit is equal to the difference between the

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summarize the paragraph “It is the last class of the day & I am teaching a classroom of sixth graders about poetry & across town a man has walked into a Starbucks & blown himself up while some other men throw grenades in the street & shoot into the crowd of civilians”

Answer: Summary This paragraph is describing two scenes that are taking place simultaneously: a sixth grade classroom learning about poetry, and a chaotic scene across town where a man has blown himself up and other men are attacking civilians. Analysis

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forecast world economy in two monsth

World Economy Forecast in Two Months The world economy is expected to remain largely stable over the next two months, with some areas experiencing growth and other areas experiencing a downturn. This can be attributed to a combination of factors,

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: Write and illustrate (photos, stick figures, digital design?) a ‘choose your own adventure’ story which illustrates how race, gender, sexuality, and/or ability are socially constructed and how messages we receive and choices we make can shape our life chances.

Answer: How Race, Gender, Sexuality, and Ability Are Socially Constructed Race, gender, sexuality, and ability are all socially constructed. This means that ideas about what is considered ‘normal’ or ‘acceptable’ are created and reinforced by society. These ideas shape how

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