Macroeconomics Answers

Calculate the measurement used in assessing economic growth.

Based on the answer above, explain whether the economy performed.

Calculate the measurement used to assess full employment and based on your answer, explain whether the economy performed.

Does the economy meet the inflation target set out by the SARB?

Calculate the inflation rate to substantiate your answer.

What type of event must happen for the exchange rate to change from R8:$1 to R9:$1 and the amount of USD traded daily to increase, as illustrated.

A change in the price of apples will not cause the supply curve in respect of apples to shift.

true or false

A change in the price of apples will not cause the supply curve in respect of apples to shift.

3. For each of the following characteristics, say

whether it describes a perfectly competitive firm, a

monopolistically competitive firm, both, or neither.

a. sells a product differentiated from that of its

competitors

b. has marginal revenue less than price

c. earns economic profit in the long run

d. produces at the minimum of average total cost in

the long run

e. equates marginal revenue and marginal cost

f. charges a price above marginal cost

3. For each of the following characteristics, say

whether it describes a perfectly competitive firm, a

monopolistically competitive firm, both, or neither.

a. sells a product differentiated from that of its

competitors

b. has marginal revenue less than price

c. earns economic profit in the long run

d. produces at the minimum of average total cost in

the long run

e. equates marginal revenue and marginal cost

f. charges a price above marginal cost

(a) firms face a download sloping demand curve?

6. The owner of a car wash is trying to decide on the number of people to employ based on

the following short-run production function:

Q 5 6L 2 0.5L2

where Q 5 Number of car washes per hour

L 5 Number of workers

a. Generate a schedule showing total product, average product, and marginal product.

Plot this schedule on a graph.

b. Suppose the price of a basic car wash (no undercoating, no wax treatment, etc.)

in his area of business is $5. How many people should he hire if he pays each

worker $6/hour?

c. Suppose he considers hiring students on a part-time basis for $4/hour. Do you think

he should hire more workers at this lower rate? Explain