Economics of Enterprise Answers

Explain the type of pricing strategy that you as the manager of a company would implement for Good X and Good Y with the following price elasticity of demand co efficient.use diagrams to motivate your answer. Good X 2.3 and Good y 0.6.

which economic policies have made the poor poorer and rich richer?

John likes coffee and cookies. The price for one cup of coffee is $1; the price for one cookie is $1. His marginal utility for coffee is 10 – x, where x is the amount of coffee. His marginal utility for cookies is 21 – 2y, where y is the number of cookies. How many cups of coffee and units of cookies will John buy if he has only $10?

Give a detailed explanation on the “ benefit principle” of taxation and equity

Cash transfer programmes could influence the behaviour of recipients in ways that could undermine the poverty‐alleviating effects and cost‐effectiveness of these interventions” (Black et al. 2017).
Do you agree with this statement? Motivate your answer with a discussion.

What are the principles of new growth theory?

Keynesian believe that fluctuations in economic activity (business cycle)

Are X‐efficiency and allocative efficiency one in the same thing? Discuss with the aid of a graph.
(10)
Q.3.2
Discuss the causes of an increase in government expenditure using Brown and Jackson’s microeconomic model.
(10)
Q.3.3
Analyse the use of subsidies in South Africa as a means of redistributing income, focusing on the costs and benefits of the program.

How can one distinguish between private goods and public goods?
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Q.4.2
“Cash transfer programmes could influence the behaviour of recipients in ways that could undermine the poverty‐alleviating effects and cost‐effectiveness of these interventions” (Black et al. 2017).
Do you agree with this statement? Motivate your answer with a discussion.