Economics Answers

1. The demand for ice cream cones is P=1600 and Qd is 2
The supply of ice cream cones is P =400 and Qs is 1. The price of a cone is expressed in cents, and the quantities are expressed in cones per day. To find the equilibrium price (P*) and the equilibrium quantity (Q*), substitute Q* for QD and QS and P* for P.

2. The demand and Supply Schedules for potato chips are:
Price(rand per bag)
Quantity demanded(millions of bags a week)
Quantity Supplied(millions of bags a week)
5
160
130
6
150
140
7
140
150
8
130
160
9
120
170
10
110
180




a. Draw a graph of the potato chip market and mark in the equilibrium price and quantity. (10 marks)
b. if the price is R6 a bag, is there a shortage or a surplus and how does the price adjust? (5 marks)

Tom is a full-time lecturer at a private higher 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 hew works for, Tom can negotiate the number of days he works at and will receive a rate of enumeration based on the number of days worked

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)

Given the budget deficit in recent, some economists have argued that by adjusting social security payment for inflation using the CPI, social security is overpaying recipients.is this statement true?

What was the negative part of the government needing to sell gold reserves during a recession while the gold standard was in place?

When countries used the gold standard and needed to increase gold reserves to print more money how was it done? How would the government create more gold reserves?

At what price should a firm produce to maximise profit in a perfectly competitive market
(1) where price equals marginal cost
(2) where price equals marginal revenue
(3) where price equals total revenue
(4) where price equals average revenue

Which of the following correctly characterises a perfectly competitive labour market?

(1) a large number of firms and a large number of workers
(2) imperfect information
(3) employees and employers having individual control over the market wage rate
(4) very few skilled workers

Which of the following is true of the profit maximizing level of employment in a perfectly competitive labour market?

(1) the marginal revenue product equals the value of marginal product
(2) the marginal revenue product equals the marginal cost of labour
(3) the marginal product equals the marginal revenue product
(4) the marginal product equals the marginal cost of labour

Do you believe and could you explain how if every single dollar owed to the US government was paid back, there would not be one dollar in circulation?
Marriner Eccles who was Governor of the federal reserve said in 1941 “If there were no debts in our money system, there wouldn't be any money.”

In economic, "the long run" is referred to as

(1) a period in which the amount of labour are fixed
(2) a period in which the amount of capital are variable
(3) a period in which the amount of all factors of production can be changed
(4) a period in which the amount of all factors of production are fixed

What financial decisions can you make when the economy is expanding and also declining