ECS1601 - ASSESSMENT 2 - Q&A - S2 - 2023

Started on Friday, 8 September 2023,
State Finished
Completed on Friday, 8 September 2023,
Time taken
Marks 19.00/20.00
Grade 95.00 out of 100.00


Question 1
Suppose that Sandile, a South African trader, imports goods from China and
sells them in South Africa. Suppose also that the Rand appreciates against the
Yuan. How would this impact Sandile’s business?

a.
The demand for Chinese goods by Sandile’s business will decrease because imports
from China become more expensive when the Rand appreciates.
b.
The demand for Chinese goods by Sandile’s business will decrease because imports
from China become more expensive when the Yuan depreciates.
c.
The price of goods that Sandile’s business imports will decrease in terms of the
Yuan.
d.
The price of goods that Sandile’s business imports will decrease in terms of
the Rand.

Feedback
The price of goods that Sandile’s business imports will decrease in terms of rand.



Question 2
If two countries have differing opportunity costs of production for two goods,
then

a.




1