Economics Answers

1. Market structures are referred as the competitive environment in which the buyers and sellers of the product operate. A market consists of all the actual and potential buyers and sellers of a particular product. Discuss thoroughly oligopolistic and perfect competitive market structure and give examples of each form of the market structure.
2. Differentiate between product market and labour market (Use diagrams that explain the interactions in the markets).

a)              Assume a reputable firm which is tempted to temporarily deceive its customers by dropping the quality of its product in the present period but retain a high price, so that it derives a temporary high profit equal to B. Further assume that there is a P probability that after its customers realise that they have been cheated they never trust the firm again, so that the profits of the firm fall by X in perpetuity. Identify the relationship between B and X which will lead the firm to never deceive its customers.

Consider the following economy and use the Keynasian model to answer the succeeding questions.

C = 350 mil + 0.85Yd

I = 175 mil

G = 300 mil

X = 170 mil

Z = 120 mil

T = 0,15Y

Yf = R3100 million

Equilibrium Income: Y = C + I + G + (X - Z)

Disposable Income: Yd = (1 - t)Y

Question 1. Calculate the Mutiplier.

Consider the following economy and use the Keynasian model to answer the succeeding questions.

C = 350 mil + 0.85Yd

I = 175 mil

G = 300 mil

X = 170 mil

Z = 120 mil

T = 0,15Y

Yf = R3100 million

Equilibrium Income: Y = C + I + G + (X - Z)

Disposable Income: Yd = (1 - t)Y

Question 1. What is the value of the marginal propensity to consume in this model?

How much does the government collect in taxes when Economy is in equilibrium

Two major causes of declining business confidence

SABMiller is making a conscious effort to appeal to more health conscious drinkers. Their approach to marketing therefore places emphasis on what the consumer needs. This refers to the principle of ________________ of the marketing concept.

Select one:

a.

profitability

b.

consumer orientation

c.

social responsibility

d.

organisational integration

Define both measurements used in assessing price stability

The consumer will go through three phases of brand loyalty. If a consumer insists on having a MacDonald’s Big Mac burger instead of a Wimpy cheese burger, during which phase of brand loyalty is the consumer going?

Select one:

a.

Brand recognition

b.

Brand preference

c.

Brand insistence

d.

Brand refusal

Dumisani is the owner of a company, Knowledge Uncapped, that does marketing research for local businesses. One of their longstanding clients, Joe’s Gym, has approached Dumisani to find out which equipment his clients would prefer to have access to in the gym. Joe and his team of fitness experts have noticed that many of their clients have cancelled their contracts with Joe’s Gym in order to join the new, modern gym across the street from them. To retain his clients, Joe wants to upgrade his equipment, but realises the first step is to find out what his clients want. Dumisani will have to compile a/an ______________ which is an instrument that will ask respondents a set of questions and that is then used to generate the data necessary for accomplishing the research objectives.

Select one:

a.

survey instrument

b.

assignment

c.

research checklist

d.

agenda