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Explain how an economist can determine whether the supply of a product is elastic or inelastic
suppose that in a year an American worker can produce 100 shirts or 20 computers, while a chinese worker can produce 100 shirts or 10 computers
a. graph the production possibilities curve for the two countries. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graph.
b. if these were open to trade, which country would export shirts? Give a specific numerical example and show it on your graph. Which country would benefit from trade? explain.
List 5 visible items that is import from Nigeria to China
What were the results of empirical tests on the relationship between human capital and international
trade? Natural resources and international trade?
What is the status of the H–O theory today?
If labor and capital can be substituted for each other
in the production of both commodities, when can
we say that one commodity is capital intensive and
the other labor intensive?
Earlier this year the SACP called for the expansion of the SARB’s mandate to include employment creation. Argue the case against this.
Last week the Monetary Policy Committee increased the Repo rate by 25 basis points.
1.1 Use the IS-LM-BP model and explain the impact of this decision on equilibrium interest rates
and output. Explain the short-, medium- and long-run impacts
What are the consequences of the imposition of price ceiling.
A company imports a product from China at a cost of $50 per unit. The product is imported with an import tariff of 20% and it is sold for $100 per unit. The total sales revenues for the company were 85.000. If the government increases the import tariff per unit of the product to 30% and the elasticity of demand is 3 find the following:
(i) How many units of this product the company will sell if the price rises the same amount with the import tariff.
(ii) Calculate if the revenues of the company will increase or decrease with the increase of import tariff.
Find the price for good Z and the quantity supply for good X (show all the calculations) if: (i) The elasticity of supply is equal to 1 and the price increases from $40 to $50.
(ii) If the elasticity of demand is 0.5 and the quantity demanded decreases from 95.000 to 85.000.
(iii) Draw the graph and indicate the equilibrium price and quantity .
Price per Tonne ($) Quantity Demanded Quantity Supplied
40 150 80
50 120 X
60 110 110
80 95 115
Z 85 120
110 80 140
