Economics of Enterprise Answers

How can one distinguish between private goods and public goods?
(15)
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.

Public economics is the study of the nature, principles and economic consequences of expenditure, taxation and financing, and regulatory action undertaken by the non‐profit‐making government sector of the economy” (Black, Calitz, & Steenekamp, 2017).
What is it that the government tries to achieve through its expenditure, taxation and financing, and regulatory action in the economy?
(5)
Q.2.2
Provide any FIVE examples where the government uses its regulatory power to manage the South African economy.
(5)

Suppose we have the consumption function C=10+ tha marginal prospensity to consume is

1. Which of the below is considered a function of money?
a) Store of value
b) Medium of exchange
c) Unit of account
d) All of the above

2. are balances in bank accounts that depositors can access on demand by writing a check.
a) Currencies
b) Demand deposits
c) Money
d) Liabilities

3. Fiat money
a) is worthless.
b) has no intrinsic value.
c) may be used as a medium of exchange, but is not legal tender.
d) refers to highly liquid assets that do not serve as a medium of exchange.


4. Money supply is also known as:
a) money stock
b) money multiplier
c) money order
d) money transfer


5. Which of the following is not included in GDP?
a) Carrots grown in your garden and eaten by your family.
b) Carrots purchased at a farmer’s market and eaten by your family.
c) Carrots purchased at a grocery store and eaten by your family.
d) None of the above are included in GDP.

Why we need development indicators

Which one of the following statements is INCORRECT? (2) (1) Trade unions act as monopolistic suppliers of labour. (2) Labour markets are sometimes monopolistic, meaning there is only one major employer. (3) Employers and employees usually have perfect knowledge about the labour market conditions in which they operate.

-Explain the Gross Domestic Product (GDP):

- Explain the Consumer Price Index (CPI):

Discuss and motivate whether the following market structures can engage in price discrimination.
1 Perfect competition
2 Monopoly