Economics Answers

the difference between short-run and long-run period of production in economics

Given the following information, Anwser all questions below

C= 400+0.85Y
I=250

a)What is the AE equation for this economy
B) What is the Equilibrium income?

If national governments in other nations agreed to share the profits from fracking with the landowners on whose property the drilling takes place, how might that change attitudes toward the fracking process?

Which of the following answers is correct?

What is this formula called: A=C+I

1. Induce consumption
2. Autonomous consumption
3. Autonomous investment
4. Autonomous spending

Which of the following countries have the highest inequality? Important: change all the values to the same measurement, that is, either change the Gini coefficients to Gini indexes ( or vice versa) and then compare the values.

1. Brazil with a Gini coefficient of 0,52
2. India with a Gini index of 33,3
3. South Africa with a Gini coefficient of 0,65
4. China with a Gini index of 37,0

B. According to Keynesian model, the factors that influence a households induced consumption are the marginal propensity to consume and ..........

1. Its disposable income
2. Its total wealth
3. The number of persons in the household
4. Its net wealth

Which change in the rand-dollar foreign exchange market will cause the ZAR (rand) to appreciate and the amount of USD traded daily to increase?

1. A shift of the supply of the USD curve to the left
2. A shift of the supply of the USD curve to the right
3. A shift of the demand for the USD to the left
4. A shift of the demand for the USD to the right

B. If GDP is less than GDE ( gross domestic expenditure) ,then......

1. The country has a surplus on the current account
2. Exports are less than imports
3. The country is consuming less than it is producing
4. The country is a net export

In what account in of a country's balance of payments will the export of diamonds be recorded?

1. The current account
2. The financial account
3. Unrecorded transaction
4. A change in gold and foreign reserves

B. The rand price of the US dollars (USD) increase to R12,02 in March 2015 from R11,53 in February 2015. This means that the South African rand.........against the dollar and the dollar.............against the rand.

1. Appreciated, appreciated
2. Appreciated, depreciated
3. Depreciated, appreciated
4. Depreciated, depreciated

If the inflation rate were above the target, it would be appropriate for the South African Reserve Bank to..........

1. Buy government bonds
2. Lower the interest rates level
3. Increase the quantity of money
4. Increase the interest rate level

B. If the South African Reserve Bank wants to decrease the money supply growth to curb inflation, it may.......

1. Increase income tax rates
2. Increase the repo rate
3. Buy treasury bills in the open market
4. Buy government bonds

An open-market policy by the South African Reserve Bank may involves.......

(A) selling of government stock to increase the liquidity deficit of the banks
(B) buying of government stock to increase the liquidity deficit of the banks
(C) selling of government stock to contribute to lower interest rates
(D) buying of government stock to contribute to lower interest rates

1. Only A and C are correct
2. Only A and D are correct
3. Only B and C are correct
4. Only B and D are correct

The repo rate is.........

1. The rate at which the South African Reserve Bank advances loans to government
2. The rate at which banks provide loans to their best clients
3. The rate at which the South African Reserve Bank provide loans to other banks
4. The rate at which the quantity of money demanded is equal to the quantity of money

B. Which of the following variables will not influence the quantity of money that an individual demand?

1. The interest rate level
2. The income level
3. The price level
4. Money supply