Economics Answers

What are the properties of utility functions

Explain three (3) reasons why liquidity or holding onto cash is important.(6)Marks

Discuss the measures a business can put in place to try to rectify a poor payment culture by its debtors. (9)Marks

Give an example of a transaction in the general journal that causes an entry to be posted twice (i.e.
to two accounts), one in the general ledger, the other in the subsidiary ledger. Does this affect the
debit/credit equality of the general ledger?

The market for bread is at equilibrium at a price of 3 per loaf and a quantity of 900 loaves being sold. Given that there is no demand for bread at a price of six per loaf, and assuming that the demand curve is linear, what is the demand curve in this market?

(Please write the equation out in full in the form: Qd=a-bP, with no spaces)

Using appropriate graphs, explain how a decrease in marginal propensity to import will affect the size of the autonomous expenditure multiplier, other things being constant. (You can use the multiplier formula to assist your explanation)

Explain through appropriate IS-LM curves the type of monetary and fiscal policies a government should take to deal with recession in an open economy

in 2002 South African Government introduced the minimum wage for domestic workers with effect from 1st January 2019 it has been revised to R15 per hour with the exception of workers working fewer hours in certain areas.
Write the aid of diagram discuss the welfare effects of such a policy if the wage rate(assuming this is R12 per hour)

An increase in demand during the start of an academic year for school bags raises the quantity of school bags demanded but not the quantity supplied

Suppose the monthly income of an individual increases from Rs. 10,000 to Rs. 15,000
which increases his demand for clothes from 20 units to 25 units. Calculate the income
elasticity of demand and interpret the result.