Macroeconomics Answers

Define both measurements used in assessing price stability

Define the economies of scale

An increase in the rand price of a foreign currency usually

a. benefits South African importers.

b. hurts both South African importers and exporters.

c. benefits both South African importers and exporters.

d. benefits South African exporters.

Depreciation of South African rand against the United States (US) dollar implies that ...

a. South Africa’s exports to the US will be relatively cheaper.

b. you need fewer relatively rands to buy one dollar.

c. the dollar has lost value against the rand.

d. the rand has gained value against the dollar.

In the aggregate expenditures model, the size of the marginal propensity to consume (MPC) is assumed to always be…

a. equal to infinity.

b. zero.

c. greater than ten.

d. an amount greater than zero, but less than one.

e. an amount greater than ten, but more than zero.

The fundamental economic problem society is confronted with involves ___________.

a.   ensuring they get what they want

b.   ensuring the lowest possible satisfaction of needs with these scares resources

c.   choosing how it will use its scarce resources to the maximum effect in order to satisfy its needs

d.   making as much profit as possible regardless of the needs of society 

Discussion Question 2

Latin American and Caribbean citizens who migrate to the United States earn salaries there that are higher than what they were earning at home. Since the migrants have the same skills as when they lived in Jamaica, why are they apparently more productive in their new country?

Compare and contrast South African government expenditure trends with other global economies

over the past 10 – 15 years

If Gouda cheese and cheddar cheese are substitutes, then which of the following would increase the demand for cheddar cheese?

 What happens to the airline industry’s market supply curve as a result of the following events? 

a) There is an increase in the price of oil; 

b) Airline workers demand and receive a 20% increase in their wage; 

c) Pratt & Whitney develops an airplane engine that is 50% more fuel-efficient; 

d) U.S manufacturers of airplanes are subsidized by the U.S. government.