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A business firm plan to launch a new product for which close substitutes are available in the market, one method of deciding whether or not this product should be launched is to obtain the service of a business consultant. The other method would be for the decision maker or manager to decide. In doing this the manager would need to investigate and analysis two major components. Identify and explain the two components.
How would you answer someone who says that marginal utility theory is useless because the utility cannot be observed?
If desired investment exceeds actual investment, then…
a) The economy is in a recession.
b) Inventories are less than the desired level.
c) Inventories are accumulating beyond the desired levels.
d) Cyclical unemployment exists.
Unrest and economic underperformance haunt the emerging world
At the start of the century, developing economies were a source of unbounded optimism and fierce ambition.
Today South Africa is reeling from an insurrection, Colombia has suffered violent protests and Tunisia faces a
constitutional crisis. Illiberal government is in fashion. Peru has just sworn in a Marxist as its president and
independent institutions are under attack in Brazil, India and Mexico.
Source: https://www.economist.com/leaders/2021/07/31/unrest-and-economic-underperformance-stalk-theemerging-world
Accessed: 20/08/21
According to economic theory, the above occurrences come as a result of emerging markets failing to
accomplish which of the following objectives?
a) Price stability
b) Balance of payments stability
c) Economic growth
d) Full employment
South Africa’s economy grew by 1.1% in the first quarter of the year (4 marks) Stats SA has published the latest gross domestic product (GDP) data covering the first quarter of the year, showing that the economy grew by 1.1% in the first three months of 2021. The growth follows a revised 1.4% rise in real GDP in the fourth quarter of 2020. On an annualised basis, the economy grew 4.6% quarter-on-quarter.
Source: https://businesstech.co.za/news/finance/496851/south-africas-economy-grew-by-1-1-in-the-first-quarterof-the-year/ Accessed: 19/08/21
The central problem that is evident in the above extract is that of…
a) Economic welfare
b) Data revision
c) Unrecorded activity
d) Non-market production
Both the Competition Commission and Icasa found, in their inquiries, that Vodacom and MTN are dominant across the supply chain. Their dominance is even more entrenched by the spectrum-sharing deals that they have entered into with Cell C, Liquid Intelligent Technologies and Rain. Cell C is wholly reliant
Source: https://techcentral.co.za/mcleod-is-wrong-about-telkom/110373/
Accessed: 19/08/21
1.2 The behavior of the companies in the extract is in line with which of the following economic schools of
thought?
a) The Free Market School
b) Marxist Economics
c) Socialist Economics
d) A Planned Economy
which of the following explains why redistribution occurs during inflation?
a) Rising prices fail to signal desirable changes in the mix of output.
b) Because all prices do not change at the same rate, people buy different combinations of goods and services and own different combinations of wealth.
c) Relative prices remain unchanged.
d) All loans are indexed to inflation
The economic argument being expressed in this extract is that of __________ and has the consequence of ______________.
is conglomeration beneficial in society and economics?
A lack of electricity regularly results in power failure in Lebanon. The daily gap between supply and demand may increase if the Lebanese economy continues to grow. The Lebanese Government is planning to build more power stations but there is a risk that the social costs of operating power stations may be greater than the social benefits.
Discuss whether the social costs of operating power stations are likely to be greater than the social benefits.
