Explain any TWO (2) uses of national income accounting to economists and to policy makers.

Assume an economy which has no government intervention and with only two individuals, Mark and Tom, who produce fish and sugarcane using the resources they have namely labour and capital (assume natural resources to be given). With the aid of well labelled diagrams, use the benchmark model to show a situation where production activities are Pareto optimal in the above mentioned economy.

Consider an economy that produces and consumes only two goods. In the following table are data for two different years. Assume 2015 as the base year.

Year: 2015 2019 Goods Quantity Price Quantity Price Burgers 400 $3 600 $4 Pizzas 400 $4 300 $6

(a) Calculate nominal and real GDP for 2015 and 2019. By what percentage did real GDP increase between 2015 and 2019? What is the annual growth rate of the economy during this period? (b) What is the GDP deflator in 2015 and 2019? By what percentage did prices rise between 2015 and 2019? What is the annual inflation rate based on the GDP deflator? (c) Assume that the typical consumer’s basket of goods is given by the average of the quantities between 2015 and 2019. What is the consumer price index (CPI) in 2015 and 2019? By what percentage did prices rise between 2015 and 2019? During this period, what is the annual inflation rate based on CPI? (d) Is the inflation rate based on GDP deflator lower than the inflation rate based on CPI? Briefly explain to justify your answer.

1a) What is the difference between renewable and nonrenewable energy?

1b) Do current price signals suggest that non-renewable resources are close to depletion?

1c) How can taxes be used to promote renewable energy? What non-tax policies can be used to promote renewable energy?

(Please answer the question based on the movie "The Big Short.". Thank you.)

1.From the movie, what were the major reasons for the 2008 Great Recession?

2. One character specifically blamed a lot of the issues on “big banks”. Do you believe that the big banks are completely responsible for the near economic collapse? Why or why not?

3. What is something that you can personally take away from this movie?

4. What do you think might be the next issue in our economy (not related to COVID 19)?

5. Who was your favorite character and why?

1a) If the current generation does not care about the welfare of the next generation, does this necessarily imply that the current generation will always use all supplies of a non-renewable resource?

1b) What is the potential for increased energy efficiency to reduce future energy demands?

Question 2 [10] TRUE/FALSE QUESTIONS Consider the following list of statements. Each statement is either true or false. You must read each statement carefully and then select the option that you believe is correct as your answer. Write down only the question number and next to the number either “True” or “False”. 2.1. The level or rate of unemployment is a stock concept, that is, it is measured at a particular date. 2.2. The consumer price index (CPI) is an index of the prices of a representative “basket” of consumer goods and services. The CPI thus represents the cost of the “shopping basket” of goods and services of a typical or average South African household. 2.3. A policy in respect of the level and composition of government spending, taxation and borrowing is called fiscal policy. 2.4. When the dollar appreciates (i.e. when the rand depreciates), imports from the United States become more expensive (in rand) in South Africa and South African exports to the United States become cheaper (in dollars) in that country, ceteris paribus. This will tend to dampen imports and stimulate exports (i.e. to improve the balance on the South African current account). 2.5. The way in which changes in the monetary sector are transmitted to the rest of the economy is called the financial transmission mechanism. 2.6. Monetary and fiscal policy (sometimes collectively called supply management) can be expansionary or contractionary. 2.7. Demand-pull inflation occurs when the aggregate supply of goods and services increases while aggregate demand remains unchanged. 2.8. Frictional unemployment (sometimes also called search unemployment) arises because it takes time to find a job or to move from one job to another. 2.9. The Phillips curve was originally regarded as a clear indication that unemployment and inflation could be traded off against each other. In other words, a lower inflation rate could be achieved by trading it off against, or exchanging it, for greater unemployment. 2.10. One complete cycle has four elements: a trough, an upswing or expansion (often called a boom), a peak and a downswing or contraction (often called a recession).

For the following scenarios, determine which curve shifts (AD and/or SRAS and/or LRAS) and in which direction.

(a) A hurricane causes destruction of physical capital along the east coast.

(b) Nominal wages fall

(c) Government spends $2.2 trillion dollars.

What are the human resource issues related to CoronaVirus and how these issues can be mitigated?

Economics (Turkish Economics)

Indicate the main principles of étatism. Also, explain the evolution of the economic policy during the 1923-1930 period

Economics (Turkish Economics)

Explain the targets of the 1st 5 year development plan (1963-1967) and the main principles of the import-substitution industrial strategy. State the economic targets of the 2nd 5 year development plan (1968-1972).?

How do costs vary in response to changes in the quantity of a variable input? In your own words. 250 words

Effects of Fiscal Policy in the Long Run

Suppose that the government suggests cutting both taxes and government purchases by equal amounts. Use the classical model to illustrate graphically what happens to the real interest rate and national saving in response to this balanced-budget change. In addition, state and explain what the long-run effects of this policy would be on private saving (S^p), investment (I), real interest rate (r), and consumption (C).