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Why is an economy not in equilibrium when aggregate demand is not equal to aggregate supply?
Compare and contrast South African government expenditure trends with other global economies over the past 10 – 15 years.
Highlight the institutional framework is in place to ensure that the South African government performs its function in a transparent, accountable and consistent manner and evaluate the effectiveness of such a framework in preventing government failure.
Briefly explain how Nozick’s entitlement theory can be applied to the land issue in South Africa.
Briefly explain the impact of a Pigouvian tax on a producer/supplier.
According to the Keynesian school of thought, the government has an important stabilisation function in the economy. What points would you use to disagree with this statement?
Do you think the SARB should be nationalised? Support your argument with not more than five relevant points.
What is the implicit deflator of GDPthe factors of production in an economy are?
You've been hired by an unprofitable firm to determine whether it should shut down its operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is 100 ETB, and the price of the firm's output is 30 ETB. The cost of other variable inputs is 500 ETB per day. Although you don't know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed its total revenue. You
know that the marginal cost of the last unit is 30 ETB. Should the firm continue to operate at a loss? Carefully explain your answer.
