Economics Answers

Find a recent article in a newspaper or magazine illustrating a change in price or

quantity or equilibrium in some market. Analyze the situation using economic

reasoning.

a) Has there been an increase or decrease in demand? Factors that could shift the

demand curve include changes in preferences, changes in income, changes in the

price of substitutes or complements, or changes in the number of consumers.

b) Has there been an increase or decrease in supply? Factors that could shift the

supply curve include changes in costs of materials, wages, or other inputs;

changes in technology; or changes in the number of firms in the market.

c) Draw a supply-and-demand graph to explain the change identified. Be sure to

label your graph and clearly indicate which curve shifts.

Assuming that Nations 1 and 2 are both large and starting from the equilibrium level of

national income and equilibrium in the trade balance in Nation 1 and given that 𝑀𝑃𝑆1 = 0.20; 𝑀𝑃𝑆2 = 0.15; 𝑀𝑃𝑀1 = 0.20 𝑎𝑛𝑑 𝑀𝑃𝑀2 = 0.10, find the change in the

equilibrium level of national income and the trade balance in Nation 1 for:

a) An autonomous increase in the exports of Nation 1 of 200 that replaces domestic

production in Nation 2

b) An autonomous increase in investment of 200 in Nation 1

c) An autonomous increase in investment of 200 in Nation 2.

Given that 𝐶 = 100 + 0.8𝑌; 𝑀 = 150 + 0.2𝑌; 𝐼 = 100 𝑎𝑛𝑑 𝑋 = 350,

a) Determine the equilibrium income

b) Show the results on two graphs with (i) Injections and leakages on the vertical axis

(ii) Net injections and net domestic leakages on the vertical axis

c) Determine the new equilibrium and show on graph when there is;

i. An increase in X and I of 200

ii. A decrease in M of 100

iii. A decrease in S and M of 100

Assume inflation in Turkey is 50% and 2% in the US. Using the relative PPP, 

a) Calculate the exchange rate (𝑅 = 𝑇𝐿/$) and the exchange rate (𝑅 = $/𝑇𝐿).

b) Assume that the Turkish inflation increases to 100% while the US inflation remains at 2%, calculate the new exchange rate between the Turkish Lira and the US dollar.

Suppose the demand and supply curves for a product is given by 𝑄 = 500 − 2𝑃 𝑄 = −100 + 3𝑃 a) Which is the supply curve and why? b) Graph the demand and supply curves. c) Compute the equilibrium price and quantity d) If the current price is 100, what is the quantity demanded and quantity supplied? How would you describe this situation and what would you expect to happen in this market? e) Suppose that the demand changes to 𝑄 = 600 − 2𝑃. Find the new equilibrium price and quantity and show this on your graph.  

In July 2021 the country witnessed unprecedented looting sprees of shopping malls and

centres in parts of KwaZulu Natal and Gauteng provinces which sadly resulted in the loss of

lives and whose economic impact will be felt for some time to come. For the first time, the term

‘supply chain’ was used so much in the media that the average South African citizen came to

appreciate the role of supply chains in the economy. In discussing, some of the points make

references to other sources to support your statements

 1. Illustrate and briefly describe one of the supply chains, which were disrupted by the ‘July

riots’

 2. Explain how the following factors affecting the distribution of network design were

disrupted: Value provided to the customer and cost of meeting customer needs.

 3. What are the effect of logistics activities on customer satisfaction?

 4. Provide recommendations to resolve logistics issues encountered in the supply chain

described in question one?

. Which of the problems in the construction of the CPI

might be illustrated by each of the following situations?

Explain.

a. the invention of the cell phone

b. the introduction of air bags in cars

c. increased personal computer purchases in response

to a decline in their price

d. more scoops of raisins in each package of Raisin Bran

e. greater use of fuel-efficient cars after gasoline

prices increase

What is the reason of having more non executive directors than executive directors? 5marks

Mention and explain three different types of cheques that the bank can issue. 5marks

1.What is the difference between real property and personal property? 5marks

2. What are two functions of the security acquired by the bank? 4marks

3. A bank has implied and common law rights in it's relationship with the customer, highlight and explain five rights that the bank has. 10marks