Microeconomics Answers

Which of the following statement(s) is/are correct?

a) In South Africa, money is created exclusively by the South African Reserve Bank.

b) The stock of money consists largely of bank deposits and banks create these deposits by making loans.

c) Money creation by banks is constrained by the demand for bank loans.

d) The South African Reserve Bank uses changes in interest rates as an attempt to regulate the rate at which new money is created.

e) The stock (quantity) of money in the economy is essentially determined by the interaction of the interest rate and the independent supply of money

4.     Suppose the nominal gross national product of Ethiopia in 2010 and 2011 together with the GNP deflator are specified as follows:

Year                           Nominal GNP (in dollar)                   GNP deflator (price index)  

2010                                       8,000,000,000,000                                         100

2011                                       10,000,000,000,000                                       200

Direction: Based on information provided above, answer questions that follow:

A.   Compute the Real GNP of Ethiopia both for the years 2010 and 2011.

B.    Determine the percentage (%) increase in Nominal GNP in 2011.

C.   Determine the percentage (%) increase in Real GNP in 2011.

D.   In which year there is higher inflation based on the above information? Why? 

You own a printing firm. Two of your senior managers provide you with advice. The first manager states that your company is losing money for every unit that is printed. To minimize losses, she advises that you reduce your production levels. The second manager states that if your firm sells some more units, the price will cover your increase in costs. In order to reduce losses, the second manager recommends that you should increase production. Explain which manager is correct and who is offering the correct advice?

 You are a manager of an advertising company. The company is running short of funds, so you decide to increase revenue. Should you increase or decrease the price of running ads? Explain.

Is it possible for a two-

product firm to enjoy economies of scope but not economies of scale and vice versa?

explain to me the determination and elasticity and inelasticity

Panel beater

S.Slinger is employed as a panel beater at NBW. Due to the nature of his work, he is remunerated on a time based system. The normal working week at NBW is 45 hours. On the first week of May 2021, S.Slinger worked for 50 hours. The company pay an hourly rate of N$30 per hour. Overtime when worked is remunerated at a time and half.

Deduction for the week:

Social security - 0.9 % of normal wages

Pension fund - 8% of normal wages

Income tax - N$315

REQUIRED:

Prepare a pay slip for S. Slinger

please explain to me the law of demand and supply how it works in economics and also explain to me debit and credit

The population in country A decrease ,due to a lower birth rate.there is an increase in the cost of fertilizer,which is used to grow vegetables. How the market for vegetables will be affected by these changes.

Discuss each of the following statements from the standpoints of equity and efficiency.

“Everyone in society should be guaranteed the best health care possible.”

“When workers are laid off, they should be able to collect unemployment benefits until they find a new job.”