Economics Answers

Mary's demand curve for food is Q =10

Her price elasticity of demand for food at price p* equals - 2/3 how much is p*

Note

a Marginal Cost (MC) is the derivative of the total cost (TC) with respect to quantity Q. TC = 300, + 5Q +10Q2 Then MC= 5 + 20Q

Descibe how the permanent income hypothesis makes current consumption a function of wealth and current labour income

Explain the term opportunity cost

2.5. Explain the economic impact of COVID 19 on the South African economy (20)

2.6 Discuss how a cut in the budget of NSFAS would affect students learning in SA (20)

2.7 What is the difference between internationalization and globalization in economics (20)

A small farmer is more likely to operate in a perfectly competitive market than a company like SABMiller because:

A. a small business is more likely to keep close control on costs than a large firm.

B. SABMiller employs many people, whereas perfectly competitive firms are owner- managed.

C. the demand for beer is less elastic than the demand for food.

1. a small farmer supplies a small share of market supply.
2. farming is more risky than beer production.

. The 15th FC was guided by the terms of reference and approach of the previous finacne commission. Explain it.

Define Supply and Law of Supply giving examples of how determinants of Supply can change the quantity supplied.

Explain how money helps specialisation and trade to occur.

In a hypothetical economy, farmers grows wheat, which he sells to a miller at 50,000.the miller turns the wheat into flours,and sells to a backer for 70,000. The backer turns the wheat into bread and sells to the consumers for 1,10,000. Consumers eat bread.

A) compute gdp by using value added approach clearly mentioning value added at each activity level

B)does this example suggest another way of computing gdp, other than value added approach? If yes, suggest the name of the approach,compute gdp and compare the result which you found with the value of gdp computed by value added approach

Is it true that optimal provision of public good is not possible if social marginal cost is equal to social marginal cost