Economics Answers

Robert recommends replacing seat belts with a $5000 citation if the driver gets into an accident which of courses is very costly. Use an economic model to explain why Roberts believe his idea would do a better job of reducing traffic accident that cause fatalities.

Explain why firms do not immediately go out of business if total revenue fails to cover total costs of production

Suppose that as a result of the listeriosis outbreak, the department of health has warned against the consumption of Viennas. Explain using a properly labelled diagram, the effect of this in the market for Viennas, ceteris paribus

Chirpy Grilled Chicken (a fast food outlet) operate in a monopolistically competitive industry and will spend about R10m increasing the range of meals it offers, in 2019.
4.1 With the aid of well labelled diagrams, explain Chirpy Grilled Chickens` profit maximising position, in the short-run and how this may change in the long-run.
4.2 Explain the key features of the industry in which Chirpy Grilled Chicken operate in comparison to the South African stock market.

Suppose that as a result of the listeriosis outbreak, the department of health has warned against the consumption of Viennas. Explain using a properly labelled diagram, the effect of this in the market for Viennas, ceteris paribus

In the market for public transport, which of the following variables would decrease demand, ceteris paribus?
A. An increase in the price of private motor vehicles.
B. A decrease in the price of private motor vehicles.
C. An increase in price of private motor vehicle service plans.
D. A decrease in the price of bus tyres.
E. An increase in the price of motorbikes, a substitute.

Assume that the market price for a 5kg bag of rice is R80 and the government has announced that a 5kg bag of rice can not be sold for less than R100. With a well labelled diagram explain the effect the above government decision will have in the market

Assume the market price for a 5 KG bag of rice is R80 and the government has announced that a 5KG bag of rice cannot be sold for less than R 100.
with the aid of a well labelled diagram, explain the effect the above government decision will have in the market for rice.

When the two countries did not specialize, the total production of jeans was 18 million pairs per month, and the total production of corn was 52 million bushels per month. Because of specialization, the total production of jeans has increased by
6
million pairs per month, and the total production of corn has increased by
4
million bushels per month.

The country is in a recession. The President of the United States has ask your opinion as to what he/she can do to get us out of the recession. In your response:

a) First answer as classicalist economist
b) Then answer as a Keynesian economist.

2. The country is experiencing inflation. The President of the United States has ask your opinion as to what he/she can do to reduce inflation .In your response:

c) First answer as classicalist economist
d) Then answer as a Keynesian economist.