Question:
58) Which of the following characterizes the environmental challenges of the 21st century? a. The impressive growth of global GDP in the 20th century was accompanied by a dramatic increase in CO2 emissions. b. Economists are beginning to realize that there are limits to the capacity of the environment to absorb the by-products of economic growth. C. Economists are increasingly questioning the ability of technological advancements to keep problems of resource depletion and pollution at bay. d. If continued at the current rate, the emissions of CO2 and other greenhouse gasses may lead to dramatic disturbances to our environment and economy. 59) If I invest $100 at 3%% interest per year, in which year will I have doubled my investment according to the simple compound interest formula A = P (1 + r) (nt) ? Where: A = the future value of the investment/loan, including interest P = the principal investment amount (the initial deposit or loan amount) r = the annual interest rate (decimal) n = the number of times that interest is compounded per unit t t = the time the money is invested or borrowed for 60) Explain the division of labor.47) Compare nominal and real wages, which is true? 48) How have economists traditionally defined "economic growth," and how is that different from "living standards arowth"? 49) Please write "aggregate supply" and "aggregate demand" next to the correct definition 50) What happens when vou increase the supply of money in a country? 51) Problems with GDP as a measure of wellbeing 52) What is included in a measure of unemployment %? 53) How many quarters of negative economic growth (% fall in GDP) are needed to constitute an official 'recession"? 2 54) Biggest assumption of a free market economy? 55) The following are the values for Consumption, Investment, Imports, Exports, and Government spending for the country of Strowsburg in the year 2020 given in billions of dollars: C = $12,000 1 = $4,000 G = $3,000 M = $5,000 X = $3,000. Use the following formula: The GDP in billions in Strowsburg is?39) True or False. Monetarists believe the government should use monetary policy to boost aggregate demand during a recession. 40) What is the current measure of growth? 41) Draw a perfectly inelastic demand curve. 42) Name a good that is price inelastic (in a western context) 43) Name a good that is price elastic (in a western context) 45) What characterizes an oligopoly? Give an example of what this might look like. 46) What characterizes a pure monopoly. Give an example of what this might look like.32) Define opportunity cost. 33) With appropriate examples, define the difference between direct and indirect taxes. 34) Define "excess supply" and "excess demand" with respect to price. 35) Define "invisible hand". 36) True or False? In you focus on current global economic paradigms, has Adam Smith has been taken out of context from his original text? 37) Which of the following can be derived fest. winter assumptions of economics? 38) True or False. The additional cost to a producer of hiring an additional unit of labor is called the marginal cost.4.3 Study the graph below and answer the questions that follow. KINKED DEMAND CURVE Prices and costs 80 B 40 D1 60 65 Quantity 4.3.1 What is the equilibrium quantity level in the oligopoly above? (1) 4.3.2 Which part of the demand curve is relatively price inelastic? Use the labelling provided. 4.3.3 Briefly describe a duopoly. (2) 4.3.4 How will the dominant firm influence the behaviour of small competitors in the market? (2) 4.3.5 Why will the oligopoly not decrease the price from R80 to R40? Explain by means of calculations. (2 x 2) (4) 4.4 With the aid of a graph, explain why marginal cost should be equal to marginal revenue to maximise profits. (8) 4.5 Evaluate the effects of implementing maximum prices. (8) [40]
