Ask Question, Ask an Expert


Ask Macroeconomics Expert

problems are based on the table below, which describes the process by which a loaf of bread is made available to a consumer as a final good.

Price (R) of a loaf of bread
Farmer sells wheat to miller 0,70
Miller sells flour to baker 1,05
Baker sells bread to grocer 1,90
Grocer sells bread to consumer 2,25

problem1) Money financing of the government deficit

a. occurs when government borrows from central bank.
b. occurs when the central bank buys securities from the government.
c. occurs when any banking institution buys securities from the government.
d. is a way of reducing the supply of money.
e. leaves the government with the ongoing obligation to pay interest.

problem2) Which of the following is likely to lead to the increase in inflation?

a. An increase in taxes
b. Monetary and credit policies that reduce private consumption
c. More efficient public activities
d. An increase in money-financed spending
e. None of the above.

problem3) If government spending is higher than present government revenue, this is called as

a. a deficit on the current account of the balance of payments.
b. the budget deficit.
c. the public debt.
d. money financing.
e. good fiscal management.

problem4) The South African income tax system is

a. regressive.
b. a flat-rate tax.
c. proportional.
d. progressive.
e. indirect.

problem5) Which of the following will be classed as the expansionary fiscal policy?

a. An increase in the money supply
b. A reduction in the number of goods exempted from VAT
c. An increase in government taxation
d. An increase in government expenditure
e. An increase in the VAT rate

problem6) Which of the following is recorded on a financial (capital) account of balance of payments?

a. A group of South Africans spends three weeks touring Europe
b. A monetary gift from Canadian citizens to their relatives in South Africa
c. A German firm pays R5 million dividends to the holders of its shares in South Africa
d. An American firm sells its shares in a South African construction firm
e. A group of German tourists visits the Kruger National Park in South Africa for two weeks

problem7) Which of the following summarises transactions involving the country’s international exchange of goods, services, current transfers and income?

a. Current account
b. Financial account
c. Balance of payments
d. Gold standard
e. Balance of trade

problem8) Which of the following will most probably contribute to deficit (or reduce the surplus) on the South African current account?

a. A depreciation of the rand
b. A Malaysian company invests in a South African oil company
c. An increase in transfers from Italian citizens to their South African relatives
d. A decline in imports
e. An increase in mine workers’ transfer of earnings to Mozambique

problem9) The foreign exchange rate is the rate at which

a. one country’s goods trade for those of another country.
b. the currency of one country trades for the goods of another country.
c. currencies of different countries are exchanged.
d. one country’s currency trades for silver provided by another country.
e. the services of one country trade for currency of another country.

problem10) Assume that euro/US dollar exchange rate changes from 1,3 euros per dollar to 1,1 euros per dollar. Then

a. the euro has depreciated against the dollar.
b. this will increase the demand for Eurozone goods by the United States.
c. this will lead to a decline in exports by the United States to the Eurozone.
d. the euro has appreciated against the dollar.
e. the dollar has appreciated against the euro.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M93035

Have any Question? 

Related Questions in Macroeconomics

Economists have long argued that due to moral hazard

Economists have long argued that, due to moral hazard problems, that "bailing out" firms such as banks (the S&L crisis), brokerage firms (Bear Stearns, Drexal Burnham...) and nations (Perhaps Greece in the future and the ...

Money and the prices in the long run and open

Money and the Prices in the Long Run and Open Economies Develop a 2,100-word economic outlook forecast that includes the following: Analyze the history of changes in GDP, savings, investment, real interest rates, and une ...

Question on labor economics in a set of 3 diagrams for the

Question on labor economics In a set of 3 diagrams for the US labor market that each have the number of Americans hired(Nb) the horizontal axes and relative wages of blacks and on the vertical axes (Wb/Ww), illustrate th ...

Suppose ralph and ed have the only store that sells toilet

Suppose Ralph and Ed have the only store that sells toilet bowls in northern Maine. Their nearest competitor is 211 miles away, and these two men have a reputation for producing high-quality toilet bowls. Graphically ill ...

Question 1 collusionassume a market for a homogenous good

Question 1. Collusion Assume a market for a homogenous good with the following demand curve: Q = 1000 - 10P where Q represents total industry output. There are two firms competing in the market, with constant and identic ...

1 1.

1. Describe three factors that help to influence our nation's focus on natural or man-made disasters. 2. Define Mitigation and Preparedness. Compare and contrast the ideas of each, and give examples to highlight your sta ...

Calculate the missing data graph thenbspmarginal revenue

Calculate the missing data, graph the Marginal Revenue Product (MRP) curve, and answer the questions.  The MRP = marginal revenue product is calculated as MP x Price = MRP.   Daily Demand for Workers in a Perfect Competi ...

A competitive firm in a perfectly competitive market

A competitive firm in a perfectly competitive market produces and sells hats. Last year, it produced and sold 1,000 hats at the equilibrium price of $10. It incurred average variable costs of $6 and earned total economic ...

Assignmentidentify government policies on

Assignment Identify government policies on competition Explain concepts of microeconomics Describe supply and demand from a microeconomics perspective Explain market influences such as consumers, products, and profits on ...

A college student has two options for meals eating at the

A college student has two options for meals : eating at the dining hall for $6 per meal, or eating a Cup O'soup for $1.50 per meal. His weekly food budget is $60. Draw the budget constraint showing the trade-off between ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen