Economics Answers

What Measures can South africa use to ensure the weakening rand against the us dollar does not affect the growth of economy

Price elasticity is used by economists to understand how supply or demand changes given changes in price to understand the workings of the real economy.
Price elasticity of demand can take more than one form. It can be elastic, inelastic or unitary.
Critically discuss elastic, inelastic and unitary conditions/forms of price elasticity of demand through the use of practical examples and graphs.

Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is $240,000. ATVs cost $8000 each and snowmobiles cost $12,000 each.

a. Draw a budget line for your purchase of new vehicles.

b. What is the opportunity cost of one ATV?

c. What is the opportunity cost of one snowmobile?

Will the ceiling to output be in any way affected by the short-run rate of growth of GDP?
If so, how?
3. Under what circumstances would you expect a rise in national income to cause a large
accelerator effect?
4. Assume that interest rates fall. Under what circumstances will this lead to (a) a large rise
in business investment; (b) little or no change in business investment?

If injections exceeds withdrawals, will GDP go on rising or will a new equilibrium be reached, if so explain

What is equilibrium in economics

What combination of monetary and fiscal policy should the government use if it wants to reduce the budget deficit, but without reducing the output? Explain using a diagram.

Central bank can keep either the money supply or interest rate constant. Under which case, will the fiscal policy have the strongest effect on the output and why? Explain using a diagram.
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identify six risk indicators that will increase the risk of material misstatement at the financial statement or assertion level

Explain, using diagrams, what happens to a perfectly competitive firm in the short run when the demand for its product suddenly increases