MACROECONOMICS (MULTIPLE CHOICE)

Which of the following questions can be answered using the concepts of macroeconomics? (11/2) Should the constitution be amended to allow the government to implement a national consumption tax to replace the current income tax? Does South Africa have a comparative advantage in labour intensive products such as footwear? Has the SARS-Cov-Z virus impacted the sale of cloth calculators in South Africa? Would process innovations in computer chip manufacturing lead to an increase in the market supply of laptops? You have been told that a decrease in the price of Good A caused the demand for Good B to decrease. This indicates that Goods A and B are _. According to the model of demand and supply, a fall in the price of Good A would _ the price of Good B and _ the quantity of Good B. The _ is the exogenous variable, while _ and _ are the endogenous variables. (1%) complements; decrease; decrease; price of Good B; price of Good A; quantity of Good 0mplements; increase; decrease; price of Good A; price of Good B; quantity of Good Substitutes; decrease; increase; quantity of Good A; price of Good B; quantity of Good Substitutes; decrease; decrease; price of Good A; price of Good B; quantity of Good B The residents of NileVille consume four goods: laptops, printers, pens and exercise books. Exercise books are imported from VoltaLand and are not produced domestically. Information that you have been provided with indicates that the National Statistical Service of NileVille has designated 2019 to be the country's base year for both CPI and GDP calculations. Records available on the National Statistical Service's website reveal that the CPI basket of that country includes 1 laptop, 1 printer, 60 pens and 20 exercise books. Exercise books cost R13 each in 2019. in 2020 the cost of exercise books increased to R3250 each. The following information about NileVille's production and prices have also been made available to the public. 201 9 2020 Quantity Price Quantity Price 1U 10 R4 000 R1 500 20 12 R5 000 R1 250 1 000 R4 500 R10 What is the GDP deator in 2020? (Only type in the numerical value. Do not include any units when submitting your answer. Round off to the nearest whole number.) (3) 4. 5. The residents of Nilere consume four goods: laptops, printers, pens and exercise books. Exercise books are imported from VoltaLand and are not produced domestically. Information that you have been provided with indicates that the National Statistical Service of NileVille has designated 2019 to be the country's base year for both CPI and GDP calculations. Records available on the National Statistical Service's website reveal that the CPI basket of that country includes 1 laptop, 1 printer, 60 pens and 20 exercise books. Exercise books cost R13 each in 2019. In 2020 the cost of exercise books increased to R3250 each. The following information about NileVilIe's production and prices have also been made available to the public. 2019 2020 Quantity Price Quantity Price Laptop 10 R4 000 20 R5 000 Printer 10 R1 500 12 R1 250 Pen 1000 R4 500 R10 Find the consumer price index in 2020. (Only type in the numerical value. Do not include any units when submitting your answer. Round off to the nearest whole number.) (3) Andile enjoys wafes, so he buys an old restaurant that specialised in making vegan hamburgers for R250 000 and spends R30 000 installing new equipment (that was all produced within South Africa) that will allow him to make wafes instead of hamburgers. How will Andile's purchases be recorded in the South African GDP accounts? (1%) Investment increases by R280 000. Investment increases by R250 000, while consumption increases by R30 000. Consumption increases by R250 000, while investment increases by R30 000. Investment increases by R30 000. Suppose that the calculation of the consumer price index (CPI) were to give electricity consumption a weight of 20% over the period 2016 2020. Furthermore, suppose that during that time environmentally friendly practices actually reduced the share of expenditure on electricity, while the relative price of electricity increased. In this case, it could be concluded that (11/2) the CPI would not change at all. changes in the CPI would provide an accurate measure of the rate of inflation affecting household budgets. changes in the CPI would underestimate the rate of ination affecting household budgets. changes in the CPI would overestimate the rate of ination affecting household budgets. 7. 10. On 1 March 2019 data released by CitrusVille's national statistical service revealed that CitrusVille had a working age population of 5 000 000 people. CitrusVille's Minister of Labour argued, in Parliament, that the economy was doing well because the country's labour force participation rate had been calculated to be 75%. Members of the opposition, however, argued that one-quarter (114) of those people were working part- time, while a further one-half (112) of those people were still searching for jobs. After hearing the opposition parties' arguments 1 000 000 people who were aged between 15 and 65, but who were not employed, and who had not searched for a job in the previous four weeks, left CitrusVille. Furthermore, 400 000 people who did not have a job, but who had actively been searching for a job in February 2019, emigrated. Data reveals that a further 350 000, who had in February 2019 been unemployed acoording to the strict denition, became depressed about the economic situation and stopped searching for a job. Assuming that the Minister of Labour and the opposition parties' data are correct, what was the (strict) unemployment rate in CitrusVille on 1 April 2019? (11/5) The unemployment rate was 37.5%. The unemployment rate was 50%. The unemployment rate was 60%. The unemployment rate was 75%. Analysing data from Statistics South Africa's Quarterly Labour Force Survey reveals that The employment-topopulation ratio is always greater than the labour force participation rate (LFPR). The LFPR is always greater than the employment-topopulation ratio. It the unemployment rate falls from one quarter to the next, then the ratio of people employed must have risen over the same period. (11/2) Option 1 is correct. Option 2 is correct. Options 1 and 3 are correct. Options 2 and 3 are correct. Which of the following statements isi'are correct? (1 1Av.) Prices, for example, are ratios between different ows. Capital, investment and prot are stock variables. Demand for labour and wealth are flow variables. Stocks can change as a result of ows. Statement 1 is correct. Statement 3 is correct. Statements 2 and 3 are correct. Statements 1 and 4 are correct. In Mankinille capital's share of income is 0.2 and labour's share of income is 0.8. It was determined that over the past year labour supply increased from 100 to 102, while the country's stock of capital increased from 500 to 515. The rate of technological advance is 2.5% per annum. Given this information, approximately how many years would it take to double the current level of output? (1 \"/2) It would take nearly 10 years to double the current level of output. It would take just more than 13 years to double the current level of output. It would take nearly 15 years to double the current level of output. It would take nearly 28 years to double the current level of output