Economics Answers

Is there an apparent relationship between low savings ratios and the ratio of foreign debt
to GDP? Explain.

Suppose you are recommending monetary policy. The economy is experiencing a sharp and prolonged inflationary trend.

a. What change in open market operations would you recommend?
b. Explain how the change you advocate would affect the cash rate.
c. Explain how the change you advocate would affect the cost and availability of credit.
d. Use diagrams/graphs of the money market and also AD-AS to support your discussion.

The following is the information from the national income accounts for a hypothetical country:
GDP Rs. 6000.00
Gross Investment 800.00
Net Investment 200.00
Consumption 4000.00
Govt. purchases of goods & services 1100.00
Govt. Budget Surplus 30.00
What is
a) NDP
b) Net exports
c) Govt. taxes minus transfers
c) Disposable personal income
e) Personal Saving.

what are welfare payments and consumer subsidies?

1. _______ is a situation in which people's wants exceed their resources
2. People make _____ with scarce resources
3. When the price of a complement for a good falls, the demand for that good ____

How will a simultaneously increase in the price of substitute good and an improvement in production technology affect market demand and/or supply, equilibrium quantity in a competitive market.

Should that indifference curves are (a) convex to the original (b) cannot intersect one another? What behavioral assumptions must be true in each case.

Analyse the effect of a price ceiling in the market for wheat on equilibrium price and quantities. What consumers/producers/both benefit because of the price ceilings? Explain using changes in consumer and producer surpluses

Under what condition will a competitive firm necessarily shut down its operations? What does this imply regarding the shape of the firm's short run supply curve?

For a particular group of 10 students, their ordering by height ( shortest to tallest) is exactly the same as their ordering by weight ( lightest to heaviest). Within this group of students, height and weight are...............

1. Negatively correlated
2. Positively correlated
3. Inversely related
4. Unrelated

(B) Antoinette is willing to pay R60 to see the movie, forest bump, for the fourth time. She finds a theatre showing Forest bump for R20. What is Antoinette's consumer surplus?

1. R0
2. R20
3. R40
4. R60