Category: Economics

4Let’s assume that you have read an announcement from TAMUCT today. It says in the announcement that TAMUCT will provide a JD degree scholarship that covers all the tuition- and study-related expenses plus the stipend of $200,000 per year (throughout the period of JD program) to a student who pursues JD degree after his or her graduation from TAMUCT. The only restriction is that the student applying for this scholarship needs to be admitted to the top 10 law schools in the US by the end of this semester. Although you are smart, and the scholarship is financially lucrative, you are not motivated to apply for this scholarship because you believe it is impossible to prepare for the law school exam and receive an admission from one of the top 10 law schools in the U.S. by the end of this semester (less than a month left). This is a good example of lacking motivation when the level of q, is low.identityexpectancyInstrumentalityvalence

1.
United States is at full employment. When the Fed cuts the quantity of money, other things remaining the same, explain the effect of the cut in the quantity of money on aggregate demand in the short run.
A. decreases the quantity of real GDP demanded but aggregate demand does not change
B. increases the quantity of real GDP demanded but aggregate demand does not change
C. increases aggregate demand
D. decreases aggregate demand

The Moloto Road is a major transport route that links Pretoria and Mpumalanga province. The road has been in a poor condition for many years, with numerous accidents occurring as a result of potholes and other hazards. However, in 2020, the South African government announced a major investment of R4.5 billion to upgrade the road, including widening it to four lanes and improving safety features such as lighting and fencing. The upgraded Moloto Road is expected to improve transport links between Pretoria and Mpumalanga, which will in turn promote economic growth in the rural areas along the route. This is because businesses will have better access to markets, while people will have better access to services and job opportunities.
1.1. How is the upgraded Moloto Road expected to promote economic growth in the rural areas along its route? Provide at least three specific examples of how businesses and people in these areas will benefit (25)

➤ Why does Susannah’s marginal benefit matter in this conflict?
Susannah’s marginal benefit ($15) measures how much she values a scent-free environment. It exceeds Yuri’s gain from wearing after-shave, creating a negative externality. That gap explains why an efficient outcome may require rules, compensation, or bargaining to align private incentives with social welfare.

Read the case study below and answer ALL the questions in this section.
The Need for Digital Technologies in Education
The globalisation of education has necessitated the application of digital technologies. Online platforms are available for conducting classes, sharing resources, doing the assessment and managing the day-to-day activities of academic institutions. However, the use of these platforms was not always proactive. The COVID-19 Pandemic forced the institutions to adopt the online teaching mode to sustain the education system. Developed countries were well equipped to deal with this crisis. However, developing countries worked hard to meet this requirement. Digital technologies have emerged as the saviour of education during that critical time.
Source: (Haleem, 2022)
QUESTION 1 (25 Marks) Discuss in detail ANY FIVE (5) ways in which Information and Communication Technology (ICT) has positively impacted higher education.

➤ How well does GDP account for changes in product quality?
Statistical agencies use hedonic pricing and quality-adjusted indices to reflect better cars, electronics, and services. These methods improve measurement but often miss subtle improvements, network effects, or new-product utility. As a result, GDP can still over- or understate real output and living standards when quality changes rapidly.

Suppose the estimated supply function for avocados is given by QS = 48 + 15p – 10pf , where pf is the price of fertilizer. The estimated demand for avocados is given by Qd = 233 – 40p + 5pt , where pt is the price of tomatoes per pound.
Solve for the initial equilibrium price and quantity of avocados when the price of fertilizer, pf , is equal to $0.90 per lb. and the price of tomatoes, pt, is equal to $0.80 per lb.
Solve for the initial equilibrium price and quantity of avocados if the price of fertilizer, pf , increases to $2.00 per lb. and the price of tomatoes, pt, remains $0.80 per lb.
Use these equilibrium values from parts a. and b. to solve for the price elasticity of demand for avocados.
Given your calculations, are avocados elastic, inelastic or unit-elastic? How have total expenditures on avocados changed as a result of the change in the price of fertilizer?