Economics Answers

Explain the concepts of Price Elasticity of Demand, Income Elasticity of

Demand and Cross-Elasticity of Demand. (10 marks)

(b) To what extent are these concepts useful to:- managers of shopping malls, and a government (20 marks)

3. Discuss the effectiveness of fiscal and monetary policies in regulating economic

1. (a) The demand (D) and supply (S) equations for a commodity (X) are given by:-

D = 2000 – 20P

S = -500 + 30P, where P = Price (R) per unit

(i) Find the equilibrium price and quantity and show on a suitable diagram. (4 marks)

(ii) Calculate Price Elasticity of Demand (PED) when price rises from R20 to R80. (2 marks)

(iii) A specific sales tax of R30 per unit is imposed on the good. Explain and illustrate the changes to part (i). (3 marks)

(iv) Comment on the burden of the tax. (3 marks)

(b) Discuss the factors affecting: demand for, and supply of a good (18 marks

The determination of the probability and impact of the identified risks and opportunities is referred to as risk ......

1 identification

2 analysis

3 evaluation

4 review

The concept of entry barriers was pioneered by Bain in 1956. He defined a barrier to

entry as anything which places potential entrants at a competitive disadvantage

compared with established firms, so that established firms are able to earn abnormal

profits over the long run.

Pick any TWO (2) of Bain’s entry barriers and discuss how each applies to any South

African industry of choice.

“The SA pharmaceutical industry is expected to deliver R73bn in sales by 2025, according to

Invest SA’s Fact Sheet published by the department of trade & industry. That’s a significant

increase on the predicted estimate of R51bn for this year alone, ensuring that the

pharmaceutical industry is one of the most actively growing sectors in SA, and a huge

contributor to the country’s bottom line.Using the Structure – Conduct - Performance (SCP) paradigm, discuss the current ‘state of

affairs’ of the pharmaceutical industry in South Africa. Be mindful to outline the associated

SWOT analysis.

Do you think that the concept of dualism adequately portrays the development picture in most developing countries? Explain

Critically discuss the principles of learning that could help you in designing and conducting your Economics education sessions

1.      What is the core discussion of the Keynesian cross?

2.      Why are actual and planned expenditure simultaneously analysed?

3.      Why is the multiplier effect taken into consideration in the Keynesian cross?

4.      How does the Keynesian cross model, explains, the functions of Fiscal policy?

5.      Why are MPC and the ΔG critical variables in the multiplier effect?

Explain the association of the following diagram (hints: the association has directions; from sales order to customers, and from customers to sales orders)?

What is segregation of duties and why internal controls need segregation of duties?

explain       C = 15 + 0.6Yd