MACROECONOMICS (MULTIPLE CHOICE)
\f31. d) 34. You have been presented with information about an identical basket of goods that could be purchased either in South Africa or Thailand. You can state, with certainty, that for a given nominal exchange rate, the South African real exchange rate with Thailand will fall if (1V2) the price of the basket of goods rises in both South Africa and Thailand. the price of the basket of goods rises in South Africa and falls in Thailand. the price of the basket of goods falls in both South Africa and Thailand. the price of the basket of goods falls in South Africa and rises in Thailand. Which of the following statements is correct? (1 12%) An analysis ofthe data reveals that at various points in time the demand for workers has increased in one region of South Africa while decreasing in another. This illustrates frictional unemployment created by sectoral shifts. Public policy can decrease frictional unemployment, but it cannot decrease the natural rate of unemployment. Economists predict that, ceten's parfbus, the more generous unemployment compensation a country has, the longer the duration of each spell of unemployment and the lower the unemployment rate. The process by which unions and rms agree on the terms of employment is called a strike. Paying efficiency wages helps rms reduce the problem associated with employees lacking the incentive to promote the best interests of the employer, when the employer cannot observe the actions of the employee by (1%) producing extra prots that can be used to improve working conditions. pairing the wages each employee is paid to the number of units of output each employee produces. inspiring unsupervised employees to maintain a high level of productivity. providing an incentive for the most suitable employees to remain with the rm. In June 2018 the BakerVille labour force totalled 1 000 000 people. in 2018 the rate of job separation in BakerVille was 0.04 per month, while the rate of job nding was 0.12 per month. If the unemployment rate in June 2018 was 10%, you thus conclude that the unemployment rate in July 2018 was (11/5) 7.6% 10.4%. 12.4%. 12.5%. MadibazLand is a closed economy with no government sector. The economy is in steady-state equilibrium. MadibazLand does not exhibit any population growth or technological progress. The marginal product of capital in MadibazLand is less than the depreciation rate. You thus conclude that (11/2) the steady-state consumption per worker will be higher in a steadystate that is characterised by a lower saving rate. MadibazLand is following the Golden Rule. the steady-state consumption per worker will be higher in a steady-state that is characterised by a higher saving rate. the depreciation rate in MadibazLand should be deceased in order to achieve the Golden Rule level of consumption. 39. b) d} Consider the gure below. Lo E 9 A' B Which of the curves illustrates the effect of a permanent decrease in the depreciation rate at time T0? (116) Curve A, which rst goes up before gradually decreasing. Curve B, which gradually goes up until it reaches a new steady state. Curve C, which rst goes down before gradually increasing. Curve D, which gradually goes down until it reaches a new steady state. According to the Harrod-Domar model, a country's government might try to increase output by (11/5) encouraging savings. W.A. Lewis introduced a development model of a dualistic economy, consisting of rural agricultural and urban manufacturing sectors. According to Lewis the traditional agricultural sector was characterised by people who could not transition into other sectors. beginning to use state-owned enterprises. W.A. Lewis introduced a development model of a dualistic economy, consisting of rural agricultural and urban manufacturing sectors. According to Lewis the traditional agricultural sector was characterised by full employment and. As such the sector was producing at the fullemployment level of output. promoting technologies that would help rms to produce more output with less capital. W.A. Lewis introduced a development model of a dualistic economy, consisting of rural agricultural and urban manufacturing sectors. According to Lewis the traditional agricultural sector was characterised by low productivity, high unemployment, low incomes and low savings. increasing the incremental capital output ratio. W.A. Lewis introduced a development model of a dualistic economy, consisting of rural agricultural and urban manufacturing sectors. According to Lewis the traditional agricultural sector had been neglected in developing countries. Focusing more attention on this sector could elevate the livelihoods of the people involved in it
