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A monopolist operates under two plants, A and B. The marginal costs of these plants are given by 360 — 14x — 2x2and 310 — 15x — x2 with x representing units of output produced by each plant. If the price of the product is given by 396 — 4x2 , calculate the overall marginal cost and determine profit maximizing output in each plant.
economy:
58. Suppose Country A experience a fall in consumption spending due to rising unemployment,
which led to a decrease in total income in the economy. This would result in the movement
from________ in the diagram?
[1] B to C
[2] A to B
[3] A to C
[4] C to B
59. Which one of the following is NOT a demand factor that influences economic growth?
[1] an increase in exports
[2] an increase in factors of production
[3] an increase in investment spending
[4] domestic manufacturing of previously imported goods
[1] It accounts for the distribution of national income
[2] It accounts for the negative effect resulting from production
[3] It is used to estimate the growth of the underground economy
[4] It does not account for labour of farmers in rural areas who produce for their own use
54. Due to coronavirus pandemic, many education institutions adopted an online teaching method. This meant that all educators must now be able to do teaching online. Mary, a contract educator, was laid off by her employer because she does not know how to use online teaching tools. Until she finds a new job, Mary is…
[1] structurally unemployed.
[2] cyclically unemployed.
[3] seasonally unemployed.
[4] frictionally unemployed.
55. Suppose South Africa is experiencing cyclical unemployment. What will be the appropriate policy to tackle South Africa’s unemployment problem?
a) improve the quality of education and training to increase the number of skilled labour
b) increase in government spending on basic infrastructure development in rural areas
c) reducing interest rate and taxes to stimulate aggregate demand in the economy
[1] a
[2] b
[3] c
[4] b c
[5] a b c
a) a decrease in the employment level.
b) an increase in the net export.
c) a fall in the purchasing power of local currency.
d) an increase in the purchasing power of local currency.
[1] a and b
[2] b and c
[3] c
[4] a and d
[5] a, b, c and d
49. If inflation accelerates due to the increase in the price of oil (an import), the best policy to combat such inflation in a country with a high unemployment rate, would be to...
[1] apply the supply-side policy that will increase aggregate supply, which will be illustrated by a rightward shift of the AS curve.
[2] respond with demand management policy that will increase aggregate demand, which will be illustrated by a rightward shift of the AD curve.
[3] implement contractionary monetary policy, illustrated by the rightward shift of the AD curve.
[4] apply incomes policy, illustrated by a leftward shift of the AS curve.
48. Which of the following best describes a difference between demand-pull inflation and cost-push inflation?
[1] Demand-pull inflation occurs when there is a shortage in aggregate demand, while cost- push inflation is the upward pressure on the general price level due to rising cost of production.
[2] Cost-push inflation can be caused by increases in the cost of wages and intermediate goods, while demand-pull can be caused by increase in exports.
[3] Demand-pull inflation is triggered by increases in the cost of production, while cost-push inflation occurs when the aggregate demand for goods and services increases while aggregate supply remains unchanged.
[4] There is no difference between demand-pull inflation and cost-push inflation as they are triggered by the same sources.
[1] Redistribution of wealth from the lender to the borrower.
[2] A decrease of the real value of existing savings.
[3] An increase in the standard of living.
[4] An increase in the cost of living.
44. In the first quarter of 2020, the economy of South Africa entered a recession. Which of the following best described what you would advice policymakers to do in order to move the economy out of a recession without causing an increase in inflation?
[1] to apply supply-side policy that will increase aggregate supply.
[2] to respond with demand management policy that will increase aggregate supply.
[3] to implement contractionary monetary policy and expansionary fiscal policy.
[4] do nothing as any response will push the economy even deeper into recession.
41. Within the AD-AS model, what will be the impact of expansionary demand management policy on the economy?
[1] aggregate supply will decrease and the price level increase
[2] aggregate demand will decrease and the price level increase
[3] total production and employment will increase, while inflation decrease
[4] real output and the price level will increase, while unemployment decrease
#339914 on Dec 2023