Economics Answers

2.1 A community in Northern Namibia produces only two goods, TVs and CDs. With the aid of properly labelled production possibilities curves illustrate each of the following (putting TVs on the vertical axis).
2.1.1 A shift in production from CDs (services) towards TVs (goods). (5)
2.1.2 An increase in the potential output of the community due to a greater availability of the factors of production. (5)

1. Calculate labor force participation rate in an economy with an adult population of 100, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired.

2. Calculate a) labor force, b) labor force participation rate, and c) unemployment rate if the population of a country is 380 million people out which 92 million are under the age of 16, 58 million don't want to work and 20 million are looking for work.

3. Calculate the inflation rate in 2005 if the index number in 2005 was 120 and the index number in 2004 was 135.

What is moderation of a decision-making process and why is it valuable? ( related to individual tax return)

Why and how do monopolistically competitive firms fail to achieve allocative efficiency? Illustrate and explain using a diagram.

In a certain economy marginal propensity to save is 0.2 and the autonomous consumption is 400
a)formulate consumption function
b)if the government expenditure is to increase were to increase by 50% what would be the resultant change in national income

Using well labelled diagrams,explain how the equilibrium price and equilibrium quantity of apples will change as a result of the following: 2.2.1 A change in the wages of farm workers from R150 per day to R200 per day. 2.2 2 a decrease in the price of fertilizers and concurrent increase in the demand of Apple juice.

There are seven producers in a small closed economy: producers of steel, machinery, rubber, tires, glass and cars and car dealers. Manufacturer of steel sells the steel to the producer of machines for 3 000 $ and to the carmaker for 4 000 $. The machine manufacturer sells its products to the producers of: cars (for 4 000 $), tires (for 2 000 $) and glass (for 500$). To produce cars, apart from steel, the producer of cars buys: tires (1 500$), glass (1000$). It sells the cars to the car dealers for 11 000 $. The tire manufacturer buys gum for 1000 $. Car dealer sells the cars to consumers for 15 000$.
1. Calculate GDP using the final expenditure approach (1 point)
2. What is the total value of production? Use a value-added approach to work out the answer. Explain the concept of value added? (1,5 points)

Sunrise Juice Company sells its output in a perfectly competitive market. The firm's total cost function is given in the following schedule:
Output Total Cost
(Units) ($)
0 50
10 120
20 170
30 210
40 260
50 330
60 430

Total costs include a "normal" return on the time (labor services) and capital that the owner has invested in the firm. The prevailing market price is $7 per unit.
(a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.
(b) What is the firm's profit maximizing output level?
(c) Is the industry in long-run equilibrium? Justify your answer.

What are the various principles of apportionment of overheads? Explain and give examples of the bases used for apportionment and reapportionment.

Why is production possibilities curve is concave explain