Macroeconomics Answers

Why might an economy take long to achieve Purchasing Power Parity?

A) Describe the properties of Cobb-Douglas production function with respect to returns to scale (10)
B) Discuss the sources of risk and uncertainty in production of agricultural goods (

A farmer sells cabbages for N$10 per head. The farmer’s variable costs are N$2.50 per head and
total cost of 100 heads is N$1450.
i. How many cabbages must the manufacturer produce each month to break even? (6)
ii. How man cabbages should be produced to make profit (4)
b) Total cost of producing carrots is C(x) = 3600+100x+2x2
and the total revenue function
R(x) =500x-2x2
i. Find the number of kg that maximizes profit (6)
ii. Find maximum profit

What is the country's gross domestic product

Discuss the applicability of the Stolper-Samuelson theorem for predicting terms of trade in two countries.

Disucss the applicability of the Stolper-Samuelson theorem for predicting terms of trade in two countries.

Briefly discuss the importance of (SMEs) small and medium-sized enterprises sector in the South African economy.