Economics Answers

According to the Dept of Labour's new rates, domestic workers working in Area A who work more than 27 ordinary hours per week must be paid a minimum of R13,69 per hour.
Workers who work fewer than 27hours per week must be paid a minimum of R16,03 per hour.
This means that a domestic worker who works 45hours per week will now earn a minimum of R2 669.24 a month.

With the aid of graph discuss the welfare effect of this new legislation if the new minimum wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour hours as your quantity variable.

Economists teach that “there is no free lunch”. As it concerns Economic Growth, the benefits are well known, but what are the costs? Discuss.

Economic Growth can be modeled as an aggregate production function that shows the determinants as inputs. Discuss.

According to the Department of Labour’s new rates, domestic workers working in Area A (bigger
metropolitan areas) who work more than 27 ordinary hours per week, must be paid a minimum
of R13,69 per hour.
Workers who work fewer than 27 hours per week, must be paid a minimum of R16,03 per hour.
This will mean that a domestic worker who works 45 hours per week will now earn a minimum of
R2 669,24 a month.
Gardeners, drivers or people who look after children, the aged, sick, frail or disabled in a private
household, all qualify as domestic workers.
With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum
wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labor
hours as your quantity variable.

Describe a scenario (real-life or fictitious) that reflects each of the following cases (Q.5.1-Q.5.3).
Thereafter, graphically illustrate and explain each scenario in each case clearly showing the impact
of the change on the equilibrium price and the equilibrium quantity of your chosen good.
(In cases where you simultaneously change demand and supply, assume that they change by the
same magnitude).
Note: Knowledge and understanding of the determinants of demand and supply are critical in
answering these questions.
Q.5.1 An increase in demand (while supply remains constant).
Q.5.2 An increase in demand and a simultaneous decrease in supply.
Q.5.3 A decrease in demand and a simultaneous increase in supply.

Dickson quantity demand of perfume rice is increased from 34bags to 67 bags when his income increased from $100 to $500.calculate the income elasticity of demand. Is the perfume rice normal or inferior? Explain

A young entrepreneur is about to set up a new firm production hats. She calculates that the variable cost of producing each hat will be €2 and fixed costs of production will be €10.000. She will be selling her hats at 10€ each. How many units dose she need to sell to break even?

Which market structure is best for the current economic climate in South Africa

What component of GDP is affected when someone buys a house?

If the AS curve shifts to the left as productivity decreases, it will result in a combination of…