Economics Answers

1.1 Construct a production possibility frontier to illustrate Tom’s earnings pot ential between the two careers if initially he was not working as a carpenter, then he worked one week per month, then two, then three and finally four weeks per month (assuming only four weeks in a month).

With regard to coal shortages and municipal debts,what forms of intervention do you think Eskom can put in place in order to cover up for all the debts and continue operating?Incorporate relevant graphs in your answer.

A minimum wage in a perfectly competitive labour market

a) will normally be imposed below the equilibrium wage.
b) which is imposed above the equilibrium wage, will lead to excess demand of labour.
c) which is set above equilibrium wage, will lead to unemployment.
d) can be instituted in an attempt to exploit low-wage workers and depress their living standards even further.

Why the national income is measured at factor prices and not at market prices?

There are five potential suppliers of a therapeutic massage. Sally, Simon, Sonia, Stewart and Sam are each willing to provide one therapeutic massage. Their respective opportunity costs are: $1, $3, $5, $7, and $9. There are five potential consumers of a therapeutic massage. Cath, Colin, Chloe, Chris and Cassie are each willing to purchase one massage. Their respective willingness to pay is: $16, $13, $10, $7 and $4. In a competitive equilibrium, what is the price of a massage? Who will buy a massage and who will sell a massage? What is the total surplus, consumer surplus and producer surplus? Illustrate your answer with a diagram.

low productivity contributes to a favorable balance of trade by making the domestic producer's goods relatively cheaper than than goods from other countries. true or false

The following refers to the hypothetical open economy where prices,wage rates and the rate of interest are constant
C=1200+0.47yd ,I=500 ,T=0.15y
Find the equilibruim level of national income ?
What is the investment multipler associated with the question ?
What is govenment multiplier associated with the question ?
By how much should government increase spending f they want the national income level to increase to 8000?
By how much should government decrease taxes if they want national income level to be 8000?

‘In the Becker’s taste-for-discrimination model, discrimination is practiced even though it is costly to do so. However, in the statistical discrimination model, it is clear discrimination pays’ Distinguish between the two discrimination models and comment on the statement.

If we assume that a union’s utility only depend on the wage rate and not the level of employment, what will be the outcome under the efficient contracts model.

Discuss the the factor that would lead to an outward shift of the PPC of Lecturer and Carpentry
and discuss a factor that could lead to an inward shift of the curve.