Hi there. can you please assist on the following question below Multiple-choice questions: Select one correct answer for each of the following. Q.1.1 Consider the information contained in the table below. The table shows output rates in France and Holland for two goods (cheese and wine), when resources are fully and efficiently utilised. Country Cheese Wine Holland 450 150 France 400 100 Based on this information: (1) Holland should specialise in wine production and should export wine to France; (2) Holland has the absolute advantage in both cheese and wine production and consequently will not benefit by trading with France; (3) France should specialise in wine production and should export wine to Holland; (4) Holland should specialise in both cheese and wine production and should export both goods to France. Q.1.2 News about high levels of criminal activity in South Africa discourages American tourists from visiting South Africa. This decline in the number of tourists from the USA will lead to: (1) A decrease in the demand for dollars and a subsequent depreciation of the rand against the dollar. (2) An increase in the supply of dollars (leftward shift of the supply curve) causing an appreciation of the rand against the dollar. (3) A depreciation of the rand against the dollar and a consequent decrease in the rate of inflation. (4) A depreciation of the rand against the dollar and a consequent rise in the rate of inflation. Q.1.3 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.
Hi there. can you please assist on the following question below
Multiple-choice questions: Select one correct answer for each of the following.
Q.1.1 Consider the information contained in the table below. The table shows output rates in France and Holland for two goods (cheese and wine), when resources are fully and efficiently utilised.
| Country | Cheese | Wine |
| Holland | 450 | 150 |
| France | 400 | 100 |
Based on this information:
(1) Holland should specialise in wine production and should export wine to
France;
(2) Holland has the
consequently will not benefit by trading with France;
(3) France should specialise in wine production and should export wine to
Holland;
(4) Holland should specialise in both cheese and wine production and should export both goods to France.
Q.1.2 News about high levels of criminal activity in South Africa discourages American tourists from visiting South Africa. This decline in the number of tourists from the USA will lead to:
(1) A decrease in the demand for dollars and a subsequent
(2) An increase in the supply of dollars (leftward shift of the supply curve)
causing an appreciation of the rand against the dollar.
(3) A depreciation of the rand against the dollar and a consequent decrease in the rate of inflation.
(4) A depreciation of the rand against the dollar and a consequent rise in the rate of inflation.
Q.1.3 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.
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