Economics Answers

Explain why money is not income

Calculate the measurement used in assessing economic growth.

Based on the answer above, explain whether the economy performed.

Calculate the measurement used to assess full employment and based on your answer, explain whether the economy performed.

Does the economy meet the inflation target set out by the SARB?

Calculate the inflation rate to substantiate your answer.

What type of event must happen for the exchange rate to change from R8:$1 to R9:$1 and the amount of USD traded daily to increase, as illustrated.

In Rwanda local farmers manage small plots of land for subsistence farming. However, some have benefited by selling pineapples at an agreed fixed price to an exporter. The exporter provides finances, training, fertilizers and machinery and even building materials for the farmer’s homes. Explain the benefits which may be gained by the local community in Rwanda from the project.

Apple and Samsung both make mobile phones and tablets using labour as an input. The amount of labour hours needed to produce one unit of each type of device is as follows: Hours per unit Mobile Phone Tablet 2 5 Apple Samsung 5 7 Let 14 and 14 denote the labour employment by Apple in the production of mobile and tablet, respectively. Similarly, lm and 1 denote the labour employment by Samsung in the production of mobile and tablet, respectively. It is further given that lm + 14 = 70 and le+ 1 = 70. i. Calculate opportunity cost of each type of device for each company and show that Apple has comparative advantage in producing mobile phones. ii. If each company divides equally the labour available in the production of the two devices, what's the total production of each device in the economy? (2) iii. Suggest an allocation of labour for both the companies such that the total production of each device is higher than that in part (ii). (2)

A change in the price of apples will not cause the supply curve in respect of apples to shift.

true or false

A change in the price of apples will not cause the supply curve in respect of apples to shift.

3. For each of the following characteristics, say

whether it describes a perfectly competitive firm, a

monopolistically competitive firm, both, or neither.

a. sells a product differentiated from that of its

competitors

b. has marginal revenue less than price

c. earns economic profit in the long run

d. produces at the minimum of average total cost in

the long run

e. equates marginal revenue and marginal cost

f. charges a price above marginal cost