Other Economics Answers

If the multiplier is 4, a R40 billion increase in net exports will …

[1] increase GDP by 160 billion

[2] increase GDP by 40 billion

[3] increase GDP by 10 billion

[4] the multiplier does not have an effect on net exports

If the multiplier is 4, a R40 billion increase in net exports will …

[1] increase GDP by 160 billion

[2] increase GDP by 40 billion

[3] increase GDP by 10 billion

[4] the multiplier does not have an effect on net exports

Fiscal policy includes …

[1] policy on government spending on official travel allowances of politicians

[2] policy on consumption taxes such as those on cigarettes

[3] policy on salaries paid to government employees and politicians

[4] all the policies set out in statements [1] to [3] above

True or False

4.    Recall we visited the Kabura family in Burundi by taking a stroll down Gapminder’s Dollar Street. The dollar values assigned to each household’s income by Gapminder’s Dollar Street account for the kids’ consumption in the household by using an adult equivalence scale.

5.    If we increase the incomes of everyone in an economy by an exact proportion, the Gini coefficient of inequality will increase by that same proportion.

Which one of the following authorities is responsible for the monetary policy?

[1] The South African Reserve Bank (SARB)

[2] Republic of South Africa’s treasury department

[3] South African Revenue Services (SARS)

[4] Statistics South Africa (STATSSA)

Select True or False.

1.    When we adjust income per capita based on Purchasing Power Parity (PPP), differences in income per capita between rich and poor countries tend to decrease because non-traded goods are cheaper in poorer countries.

2.    Selection bias will be zero if the average value of the observed outcome variable of the control group is equal to the average value of the outcome variable of the treatment group if the treatment group had not received the treatment.

3.    The  measure can be alternatively defined as the cost of bringing everyone up to the poverty line in any given point in time.

Consider a Keynesian model:

Full employment output = R100 million

Tax rate = 0,25

Investment = R40 million

Autonomous consumption = R30 million

Marginal propensity to consume = 0,8

3.28 The value of the multiplier is …

[1] 2

[2] 1.67

[3] 2.5

[4] 4

3.29 The equilibrium level of income is …

[1] R70 million.

[2] R175 million.

[3] R280 million.

[4] R140 million.

3.30 To bring about full employment, government spending should be …

[1] -R30 million.

[2] -R72 million.

[3] R30 million.

[4] R75 million.

The market for lemon has 10 potential consumers, each having an individual demand curve

P = 101 - 10Qi, where P is price in dollars per cup and Qi is the number of cups demanded

per week by the ith consumer. Find the market demand curve using algebra. Draw an

individual demand curve and the market demand curve. What is the quantity demanded by

each consumer and in the market as a whole when lemon is priced at P = $1/cup?

Peanut butter and syrup are complements in consumption. What will happen in the market for syrup if the demand for peanut butter increases?

Using real life examples, give reasons why Kenyans avoid VCT