Economics Answers

if a bank has deposits of 100 000 and it can loan out 80 000, but has excess reserves of 5000 what is the required reserves and ratio.
What amount of credit is the bank allowed to give?

Tom is a full-time lecturer at a private higher education institution and is considering a career in
carpentry. He wishes to pursue a career in carpentry (a childhood dream) which he has studied part-time
and is now equipped to take on clients. In his current position he earns a rate of R1000 per day and if he
were to pursue a career in carpentry he would earn R800 per day. Due to the flexibility of the
employment conditions at the higher education institution he works for, Tom can negotiate the number of
days he works at and will receive a rate of remuneration based on the number of days worked.
Question 1
1.1 Construct a production possibility frontier to illustrate Tom’s earnings potential 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 form of intervention do you think can Eskom can put in order to cover up all debts and continue operating? Incorporate relevant graphs in your answer

The data below show real wage levels at various percentiles of the wage distribution for
material-handling labourers in New Zealand

Percentile 1975 1995
10th 4.26 2.97
50th 6.02 3.89
90th 10.44 9.07

A. Calculate w90/w50, w50/w10, and w90/w10 percentile wage differentials for both
years.
B. Describe the changes in wage inequality in this local market

a. Is there an apparent relationship between low savings ratios and the ratio of foreign debt
to GDP? Explain.
b. Can a nation fund its investments at a level higher than that currently provided by its
income? Explain.
c. What are the probable longer-term implications of this type of behavior?
d. Is a high savings ratio a requirement for funding a high ratio of investment to GDP over
the longer term? Explain.

Analyse how fiscal policy measures could reduce inflation.

When the price of commodity c rises by 10%,the quantity demanded falls by 18%.this is an example of

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 all the debts and continue operating? incorporate relevant graph's in your answer

If a firm uses only capital and labour, show why the cost minimising the combination of inputs sets:

Illustrate and explain using diagrams, the difference between long-run supply in a constant
cost individual firm and industry and an increasing cost firm and industry.