Macroeconomics Answers

1. Use examples to explain the difference between absolute advantage and comparative (or relative ) advantage in international trade. (You can draw a table or you can explain) [6 marks]. Your answer must have references

1. Who would benefit and who would lose if the South African government doubled the tarriff on imported frozen chicken leg quarters from Brazil? Explain.

What factors are likely to cause an increase in the demand for british pounds (in exchange for south african rands)?[5 marks]

1. Draw a demand and supply curve for british pounds (on the vertical axis plot rand per british pound). [10 marks).What factors are likely to cause an increase in the demand for british pounds (in exchange for south african rands)?[5].How can this be illustrated in the diagram you have drawn?[3] Does this represent an appreciation or depreciation of the south african rand relative to the british pound?[2].include reference.

1. List four possible reasons for an appreciation of rand against the us dollar.
2. Explain how changes in exchange rates can influence exports and imports?

1. Who would benefit and who would lose if south african government doubled the tariff on imported frozen chicken leg quarters from brazil?explain.
2. Use examples to explain the difference between absolute advantage and comparative (or relative) advantage in international trade.

What international trade is and why countries should trade?

the aggregation of what happens at micro economic level is what what constitute macro economy would it be possible for what happen to macro level to differ from how an agent would react to some stimuli at micro level ?

what is Measure of Value, Medium of exchange and store value?

Yor are given the following information about an economy:
a. Gross private domestic investment =40
b. Goverment purchases of goods and services =30
c. Gross national product (GNP) =200
d. Current account balance =-20
e Taxes =60
f. Government transfer payment to the domesti private sector =25
g. Interest payments form the govment to the domestic private sector =15
h. (assume all intersest payments by the government goes to the domestic household)
i. Factor income received form the rest of the world =7
j. Factor payments made to rest or world =9
Find the following, assuming theat government investment is zero:
1. Consumption
2. GDP
3. Net factor payment from abroad
4. Net eport
5. Private saving
6. Government saving
7. National saving