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Economics Assignment 2 Answer the Questions

Economics Assignment 2 Solutions

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Economics

 

QUESTION ONE

 

Assume the government of an economy increases the tariff on wheat imports. Examine, with the aid of a diagram, the economic impact this will have on the market for wheat.

 

QUESTION TWO

 

  • Analyse and demonstrate with the aid of a diagram, the main economic phenomenon that supply shocks can lead to in terms of the Phillips Curve model. Provide contemporary examples to enhance your answer.
  • The Covid-19 pandemic has led to many economies experiencing a slowdown in economic activity. Two main types of unemployment can arise as a result of the Covid- 19 pandemic. Determine and discuss these two main types of unemployment.

 

QUESTION THREE

 

Defend the point that the South African Reserve bank would have to increase the money supply in order to keep the interest rate unchanged in the event that nominal income increases. Motivate your answer with the ONE most relevant diagram.

 

QUESTION FOUR

 

Market failure occurs when individuals acting in rational self-interest produce a less than optimal outcome. In terms of this statement, analyse two (2) different types of market failures.

 

This is a research based assignment and requires evidence of research

 

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