Economics Answers

The college graduates of 2000 could hardly have asked for better luck. The unemployment rate dropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers were literally scrambling for new hires. Starting salaries rose, many graduating seniors had numerous job offers, and some firms even offered $10,000- $20,000 bonuses to students who signed the dotted line.

(i) Briefly explain and justify what prevailing situation was taking place in the year 2000. (2 marks) (ii) Identify and explain two (2) fiscal policies and two (2) monetary policies that the US government may have used to correct this situation. (6 marks) (iii) Use a diagram to illustrate the correction measures. (2 marks) 

Write an essay in which you discuss the costs of unemployment in South Africa, and explain measures that can be implemented to combat unemployment. (15 marks)

Question 1 (20 marks)

Write an essay in which you critically evaluate how South Africa is performing with regard to the five (5) main macroeconomic objectives.

Question 1 (15 marks) the questions that follow:

Commodity prices have been increasing on the world market. South Africa is a major exporter of commodities such as gold and platinum.

1.1 Use a foreign exchange diagram to illustrate and explain the effect of the increase in commodity prices on the rand–dollar exchange rate, ceteris paribus. (10 marks)

1.2 Define the terms of trade, and explain how the terms of trade will be affected in South Africa by the increase in commodity prices. (5 marks)

On June 1, Trade Kings Company borrows $250, 000 from ATLASMARA Bank on a 6-month, $250, 000, 10% note.

Instructions

(a) Prepare the entry on June 1.

(b) Prepare the adjusting entry on June 30.

(c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.

(d) What was the total financing cost (interest expense)?

At 1 October 2015 a business had total outstanding debts of $8, 600. During the year to 30 September 2016 the following transaction took place.

(a) Credit sales amounted to $44, 000.

(b) Payments from various customers (accounts receivable) amounted to $49, 000.

(c) Two debts, for $180 and $420, were declared irrecoverable and the customers are no longer purchasing goods from the company. These are to be written off.

Required

Prepare the trade accounts receivable account and the irrecoverable debts account for the year.

1). For each risk in class 2, the number of claims per year follows a binomial distribution with mean

m = 8 and q = 0.55.

Find the Buihlmann credibility?

Uber has a monopoly on ride-sharing services. In one town, the demand curve on weekdays is given by the following equation: P = 50 - Q. However, during weekend nights, or peak hours, the demand for rides increases dramatically and the new demand curve is P = 100 - Q. Assume that marginal cost is zero.

a. Determine the profit-maximizing price during weekdays and during peak hours. [4]

b. Determine the profit-maximizing price during weekdays and during peak hours if MC = 10 instead of zero. [4]   

c. Draw a graph showing the demand, marginal revenue, and marginal cost curves during peak hours from part (b), indicating the profit-maximizing price and quantity. Determine Uber’s profit and the deadweight loss during peak hours, and show them on the graph. 

What is the multiplier

1.) Predict how each of the following economic changes will affect (separately) the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to support your answers.

1. The number of people at the most common ages for home-buying increases.
2. People gain confidence that the economy is growing and that their jobs are secure.
3. Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.
4. Because of a threat of a war, people become uncertain about their economic future.
5. The overall level of saving in the economy diminishes.
6. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.