1.1. Kenya has a comparative advantage over Uganda in the production of sugar if it: (1) Is able to produce sugar at a faster rate than Uganda. (2) Produces sugar at a lower opportunity cost than Uganda. (3) Has the absolute advantage in sugar production. (4) Specialises in sugar production.
1.1. Kenya has a
(1) Is able to produce sugar at a faster rate than Uganda.
(2) Produces sugar at a lower
(3) Has the absolute advantage in sugar production.
(4) Specialises in sugar production.
Q.1.2 An appreciation of the rand against the dollar:
(1) Will worsen the current account balance but improve domestic prices.
(2) Improve the current account balance but worsen domestic prices.
(3) Improve the current account balance as well as reduce domestic prices.
(4) Worsen both the balance on the current account as well as domestic prices.
Q.1.3 Which of the following will NOT cause a
dollar?
(1) A decrease in imports from the United States.
(2) A decrease in exports to the United States.
(3) A decrease in the number of tourists visiting South Africa from the United
States.
(4) An increase in the number of American investors selling their shares in South
African companies and converting the proceeds to dollars.
Q.1.4 Out of 20 million people in the population, 9 million people are in the labour force
and 3 million are unemployed, therefore the
(1) 3 percent.
(2) 15 percent.
(3) 30 percent.
(4) 33,3 percent.
Q.1.5 and Q.1.6 are based on the following information about an economy that
produces the following combinations of two goods: bats and balls.
2018 (Base year) 2019
Quantity Price (R) Quantity Price (R)
Bats 205 8 210 9
Balls 310 4 320 5
Q.1.5 The value of the nominal
(1) R1 530.
(2) R1 045.
(3) R2 880.
(4) R3 490.
Q.1.6 The value of the real GDP in 2019 is:
(1) R1 880.
(2) R2 620.
(3) R2 960.
(4) R3 395.
Q.1.7 If the marginal propensity to consume increases:
(1) The slope of the consumption function will be steeper.
(2) There will be a movement from left to right along the consumption function.
(3) The consumption function will shift parallel upwards.
(4) The consumption function will shift parallel downwards.
Q.1.8 In the
(1) Total spending is always equal to total production and income.
(2) Total spending is always greater than total production and income.
(3) Total spending is always less than total production and income.
(4) Total spending may be greater than, equal to or less than total production
and income
1.9. if household’s income falls from R12 000 to R10 000, and its consumption falls
from R9 500 to R8 000, then:
(1) The marginal propensity to consume is ‐0.8.
(2) The marginal propensity to consume is 0.75.
(3) The marginal propensity to consume is 0.2.
(4) The marginal propensity to save is 0.15.
Q.1.10 Which of the following statements is correct?
(1) When a British firm invests in a bicycle manufacturing facility in South Africa,
the amount concerned is entered as an inflow on the current account of the
South African balance of payments.
(2) When someone purchases a second‐hand car, the transaction is included in
the calculation of GDP in the year the sale took place.
(3) A deficit on the current account of the balance of payments indicates that
the country exported more than it imported during the period in question.
(4) In the base year, the value of nominal GDP is equal to the value of real GDP.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
