Economics Answers

illustrate and briefly explain the relationship between marginal cost and average cost curves

use a well labelled diagram to show how production isoquant can be used to explain ;increasing return, constant return, decreasing return

distinguish between short run and long run production period

illustrate the short and long run equilibrium of monopolistic competition

In March 2016, Barclays Bank announced that it intends reducing its 62.3 % shareholding in Barclays Africa Group Limited (BAGL) in the coming two to three years. It is estimated this transaction is worth $4.1 billion.

a. an outflow of funds, which will be recorded on the current account of the balance of payments.

b. If Barclays sells its share to a South African Bank and then disinvests from South Africa, it will create…

c. an inflow of funds, which will be recorded on the financial account of the balance of payments.

d. an outflow of funds, which will be recorded on the financial account of the balance of payments.

e. an inflow of funds, which will be recorded on the current account of the balance of payments

If the marginal propensity to consume is 0,6 which of the following statements is correct?

a. It means that 60% of total income earned is saved.

b. It means that 60% of an increase in income will be used for consumption, while the remaining 40% will be saved.

c. It means that a change in income does not affect the marginal propensity to consume.

d. It means that 60% of the increase in income is saved, while the remaining 40% will be used for consumption.

The following factors contributed to South Africa being downgraded to junk status in 2017.

a)Debt incurred by stated-owned entities such as Eskom.

b)Corruption and increased public debt.

c)Lack of clarity regarding economic policy.

d)High economic growth.

a. only b

b. a, b and c

c. only d

d. c and d

What could the central bank do to lessen the effect of the depreciating rand?

a. supply less USD to the market

b. decrease the domestic interest rate

c. supply more USD to the market

d. supply more ZAR to the market

Unemployment remains a concern for South Africa’s future growth where 1.4 million job losses since the beginning of the COVID-19 affected low-skilled workers. Which type of unemployment gave rise to the high job losses of low skilled workers? Justify your answer.

Monetary policy will remain accomodative. Explain how the Repo system is used by the SARB as an accommodative policy approach.