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How successful was the New Growth Path in influencing economic growth and development in South Africa
2012
R 3 253 851m
2019
R5 077 625m
29
17.9
14.6
R54906
58.56m
GDP at market prices
Unemployment rate % 24.7
Gross Fixed Capital Formation as % of GDP
Gross savings as a % of
GDP
GDP per capita at constant 2010 prices
Population
19.2
14.8
R55543
52.83m
Source: SARB Quarterly Bulletins and World Bank
write an interpretative essay on South Africa's macroeconomic conditions over the 2012-2019 period. In your essay, also explain how GDP is measured when one uses the output method, and comment on the extent to which a change in GDP reflects an improvement in citizens' welfare.
Consider an economy with two firms. Firm 1 produces iron, employing workers and using machines to produce the iron. It sells the iron for K1500 to Firm 2, which produces roofing sheets. Firm 1 pays its workers K1000, leaving K500 in profit to the firm.
Firm 2 buys the iron and uses it, together with workers and machines, to produce roofing sheets. Revenues from car sales are K3000. Of the K3000, K1500 goes to pay for iron and K750 goes to workers in the firm, leaving K750 in profit to the firm.
Required
- What is the final value of goods produced? (5 marks)
- What is the total value added? (5 marks)
- What is total income? (5 marks)
- Discuss three complications in computing national income.
Consider an economy with two firms. Firm 1 produces iron, employing workers and using machines to produce the iron. It sells the iron for K1500 to Firm 2, which produces roofing sheets. Firm 1 pays its workers K1000, leaving K500 in profit to the firm.
Firm 2 buys the iron and uses it, together with workers and machines, to produce roofing sheets. Revenues from car sales are K3000. Of the K3000, K1500 goes to pay for iron and K750 goes to workers in the firm, leaving K750 in profit to the firm.
Required
- What is the final value of goods produced? (5 marks)
- What is the total value added? (5 marks)
- What is total income? (5 marks)
- Discuss three complications in computing national income.
The Syejumba Farmers association allows maize farmers to get twice as much gallons of maize from their factors of production. In terms of this production possibility frontier, this means that this economy can now produce twice as much maize at each level of vigayo output. With the economy currently producing 2 Vigayo, Mwansa kabinga claims that the development of the Syejumba Farmers association allows the economy to produce more maize and more Vigayo. Do you agree? Explain carefully, using an appropriate diagram to illustrate your answer
Suppose the Syejumba economy is currently producing 2 Vigayo and 300,000 gallons of maize. What is the opportunity cost of producing additional 200,000 gallons of maize?
willing to bring to the marketplace as a function of the price consumers are willing to pay. The following function is the supply function 9s = 0.5p2 – 200 where qs equal
no. of units supplied (stated in thousands) and p equals the selling price. a. What class of function is this? b. What quantity would be supplied if the market price is $30? $50? c. What price would result in 0 units being brought to the marketplace?
a. The Karachi stock market declines sharply, reducing consumers’ wealth. (1.5 Marks, Maximum 150 words)
b. A severe Flood damages factories along the Indus River. (1.5 Marks, Maximum 150 words)
c. Pakistan experiences a wave of immigration (1.5 Marks, Maximum 150 words)
d. A boom overseas causes foreigners to buy more Pakistan goods. (1.5 Marks, Maximum 150 words)
e. State Bank of Pakistan increases the policy rate (Interest rate). (1.5 Marks, Maximum 150 words)
Extract the GDP, employment rate, investment, education, political stability or other socio-political, institutional, and economic factors for all the economies. Run the regression analysis for the conditional and unconditional convergence for a sample of developed countries and developed countries, each separately and an aggregate analysis for the global economy. The selection for the development level categories can follow regional divisions or international organization membership, etc.…. (For e.g. OECD, Western Economies, OPEC, BRICS, etc.) . Plot the respective convergence analysis graphs depicting the convergence behavior. (Use the average per capita GDP growth between 1990 and 2020 as a dependent variable and GDP growth rate in 1960 as the independent variable for the unconditional regression analysis. For the conditional convergence, use additional explanatory variables in addition to the GDP growth rate
b. Given the production function Y= AF (L, K, H, N), explain the determinants of productivity. (1.5 Marks, Maximum 100 words).
c. Population growth has a variety of effects on productivity. Explain this statement and justify your answer. (1.5 Marks, Maximum 200 words).
