1 Kenya has a comparative advantage over Uganda in the production of sugar if it: (1) Is able to produce sugar at a faster rate than Uganda. (2) Produces sugar at a lower opportunity cost than Uganda. (3) Has the absolute advantage in sugar production. (4) Specialises in sugar production.
Multiple choice question:
1 Kenya has a
(1) Is able to produce sugar at a faster rate than Uganda.
(2) Produces sugar at a lower
(3) Has the
(4) Specialises in sugar production.
Q.1.2 An appreciation of the rand against the dollar:
(1) Will worsen the current account balance but improve domestic
(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.
Q.1.3 Which of the following will NOT cause a
dollar?
(2)
(1) A decrease in imports from the United States.
(2) A decrease in exports to the United States.
(3) A decrease in the number of tourists visiting South Africa from the United
States.
(4) An increase in the number of American investors selling their shares in South
African companies and converting the proceeds to dollars.
Q.1.4 Out of 20 million people in the population, 9 million people are in the labour force
and 3 million are unemployed, therefore the
(1) 3 percent.
(2) 15 percent.
(3) 30 percent.
(4) 33,3 percent.
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