Macroeconomics Answers

4Dumisane knows that he needs to stay abreast of what is happening in the business environment around him.He is aware that the business environment is dynamic and he needs to be aware of the changes that might influence his computer services business,named Gigs and Gadgets. Dumisani does elementary environmental scanning.

Which one of the following statements regarding elementary environmental scanning is correct?

1Dumisane contacts a consultant to determine which factors will influence his business in the short and long term.

2Dumisane updates himself regularly by means of newspapers,SMME websites and his own sales records.

3Dumisane has employed a person in Gigs and Gadgets to monitor changes in the business environment.This person is responsible for conducting regular research projects and to assess general economic fluctuations.

4Dumisane has contacted an environmental scanning company and pays them a hefty amount every month as a retainer so that they can keep watch over his business environment.

3.Which one of the following is NOT a variable in the macro environment?

1 The technological environment

2 The economic environment

3 The social environment

4 The competitive environment

1.Tsogo Sun’s group values reflect the values of the top managers and contribute to the planning context of the organisation. These values influence and cement the organisation’s culture, values and structure. An organisation’s culture, values and structure are all variables in the organisation’s ____________environment over which management has ____________ control

1 micro/no

2 micro/direct

3 market/no

4 market/direct

2.Which one of the following is an example of a variable in the physical environment?

1 South Africa’s power is mainly supplied by Eskom whose production capacity was strained in recent years, resulting in load shedding.

2 New cultural values are emerging among young urban black people in South Africa.

3 The release of the Companies Act 71 of 2008, which has replaced the old Companies Act and amends the Close Corporation Act 69 of 1984.

4 The Consumer Protection Act 68 of 2008 which came into effect in 2011

The brand name, Tsogo Sun, and its Sunburst logo are part of the _____________ resources of the company.

1 tangible

2 intangible

3 organisational competency

4 human

When banks have positive excess reserves, this indicates that

a) banks can expand their loans

b) banks must contract their deposits

c) nothing will happen since banks will always try to keep large amounts of excess reserves

d) a run on the bank is impossible

State any two(2)ways that firms operating under perfect competition can use to increase their profit since they cannot temper with price and quantity.

ompare the evolution of Saudi's nominal GDP against real GDP between 1970 and 2019.

Given are the following information for the three sector economy,

C = 600 + 0.8Yd

I = 400

G = 200

T = 300

All values are in RM million.

A) Derive the:

i) consumption function after the tax. [2 marks]

ii) saving function after the tax. [2 marks]

B) Calculate the equilibrium income level for the above economy.

C) If the full employment level of income is RM6, 400 million, calculate the:

i) inflationary gap or deflationary gap.

ii) required tax changes to achieve a full employment level of national income.

D) If the government increases the government spending of RM80 million and reduces the tax by RM80 million at the same time, calculate the new equilibrium level for the above economy.

Distinguish between GDP deflator and Consumer Price Index (CPI). (7)

(b) The CPI of Namibia was 101 in December 2018. It then rose to 133 in December 2019,

(i) Determine the annual rate of inflation over the period. (4)

(ii) Explain any shortcoming of real GDP from a welfare perspective (7)

(iii) Distinguish between nominal GDP and real GDP, and explain why nominal GDP growth of

an economy is usually higher than real growth.

IF GNP=500 CAPITAL COSNUMPTION ALLOWANCE=50 INDIRECT TAXES =60 SUBSIDIES=10 CORPORATE PROFITS= 70 DIVIDENDS= 15 GOVERMENT TRANSFER PAYMENTS=25 PERSONAL DIRECT TAXES=70 PERSONAL CONSUMPTION EXPENDITURE= 275 WHAT IS NNP

NATIONAL INCOME , PERSONAL INCOME, PEROSNAL DISPOSABLE INCOME PEROSNAL SAVINGS