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Macroeconomics
Which of the following statements is/are correct?
a) If the average income of voters is less than the income of the median voter, taxes would be relatively high.
b) The growth in the share of government can be attributed to an inflation-linked increase in public expenditures.
c)Peacock and Wiseman's displacement effect implies that after a national crises expenditure levels will not return to their pre-crises levels.
d) Micro models focus on the decision-making behavior of public individuals and institutions.
a) If the average income of voters is less than the income of the median voter, taxes would be relatively high.
b) The growth in the share of government can be attributed to an inflation-linked increase in public expenditures.
c)Peacock and Wiseman's displacement effect implies that after a national crises expenditure levels will not return to their pre-crises levels.
d) Micro models focus on the decision-making behavior of public individuals and institutions.
Macroeconomics
Which of the following statements is/are correct?
a) From 1960 to 2012 the nominal resource use by the general government in South Africa shows a rising trend although there are periods of decline.
b) It is important to distinguish between the empirical issue of expenditure growth and the reasons for it, and the normative question of what the appropriate size of government should be.
c) We have to distinguish between explanations of changes in the annual growth of government expenditure and the growing trend in the share of government in the economy.
a) From 1960 to 2012 the nominal resource use by the general government in South Africa shows a rising trend although there are periods of decline.
b) It is important to distinguish between the empirical issue of expenditure growth and the reasons for it, and the normative question of what the appropriate size of government should be.
c) We have to distinguish between explanations of changes in the annual growth of government expenditure and the growing trend in the share of government in the economy.
Macroeconomics
Which of the following statements is/are correct?
a) Peacock and Wiseman agrees with Wagner that a country undergoing industrialisation will experience an expansion in administrative and protection services.
b) According to Wagner demand for certain public goods and services would increase as individuals become more affluent.
c) Wagner's law explains public expenditure growth in South Africa adequately.
d) Micro models focus on the decision-making behavior of public individuals and institutions.
a) Peacock and Wiseman agrees with Wagner that a country undergoing industrialisation will experience an expansion in administrative and protection services.
b) According to Wagner demand for certain public goods and services would increase as individuals become more affluent.
c) Wagner's law explains public expenditure growth in South Africa adequately.
d) Micro models focus on the decision-making behavior of public individuals and institutions.
Macroeconomics
To promote GDP growth, governments should invest in...
a) the economic infrastructure
b) human capital
c) research and development (R&D)
d) all of the above options are correct
a) the economic infrastructure
b) human capital
c) research and development (R&D)
d) all of the above options are correct
Macroeconomics
“Raising income tax will always create a budget surplus”. Evaluate the extent to which you agree with this statement. Use a laffer curve in your answer ( 15 marks)
Macroeconomics
19. The theory that suggests that our unlimited wants will lead to perpetual economic growth is the
a. classical growth theory.
b. sustained growth theory.
c. old growth theory.
d. new growth theory.
e. Malthusian growth theory.
a. classical growth theory.
b. sustained growth theory.
c. old growth theory.
d. new growth theory.
e. Malthusian growth theory.
Macroeconomics
3. Suppose in the foreign exchange market that the following exchange rates hold:
£1 = $2.00 £ = British pound sterling
¥1 = $0.20 ¥ = yen
£1 = ¥12 $ = US dollar
How could an arbitrageur make a profit? Assuming flexible exchange rates, how would arbitrage eliminate their profit possibility? What would happen if exchange rates were fixed at these levels?
£1 = $2.00 £ = British pound sterling
¥1 = $0.20 ¥ = yen
£1 = ¥12 $ = US dollar
How could an arbitrageur make a profit? Assuming flexible exchange rates, how would arbitrage eliminate their profit possibility? What would happen if exchange rates were fixed at these levels?
Macroeconomics
Which is a natural barrier to the entry of a new farm in an industry
Macroeconomics
Explain the relationship between output, saving, and investment. Explain what condition
must occur for each of the following to occur: (1) the capital stock to increase; (2) the capital
stock to decrease; and (3) the capital stock to remain constant with aid of a diagram.
must occur for each of the following to occur: (1) the capital stock to increase; (2) the capital
stock to decrease; and (3) the capital stock to remain constant with aid of a diagram.
Macroeconomics
It is very well known by economists and policymakers that, in practice, potential
output is very hard to measure. In particular, different approaches of measurement
give very different levels of potential output. Does this uncertainty about
the measurement of potential output constitute challenges for economic policy?
Why or why not?
output is very hard to measure. In particular, different approaches of measurement
give very different levels of potential output. Does this uncertainty about
the measurement of potential output constitute challenges for economic policy?
Why or why not?
