29 Questions
Who is credited with the phrase 'By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it'?
Adam Smith
What is the main idea behind Karl Marx's 'The Communist Manifesto'?
The history of mankind is the history of class struggle
What did Karl Marx predict would happen in England?
A proletarian revolution would occur
Who is the Convener of the ECO1010F course?
Corné van Walbeek
What is the name of Karl Marx's book that critiques capitalism?
Das Kapital
What is the term used to describe the ruling class in Marxist theory?
Bourgeoisie
What is the purpose of the course outline document?
To provide an overview of the course structure and assessments
What is Professor Corné van Walbeek's research focus?
Economics of Excisable Products
What is recommended for students to achieve success in the course?
Work consistently and attend lectures
Who is the Head Tutor of the ECO1010F course?
Keratiloe Dube
When did Professor Corné van Walbeek start working at UCT?
2000
What is the opportunity cost of going to watch the rugby?
R220
What is the economic cost of going to watch the rugby?
R470
What is the net benefit of attending the rugby?
R300
What is the decision rule when deciding between alternatives?
Take the action if the total benefit is greater than the economic cost
What is economic rent?
The benefit from choosing the best option
What is the formula for economic rent?
Net benefit from option taken - net benefit from next best option
What is the economic rent of going to the rugby in the given example?
R80
Why does specialization increase productivity of labour?
Because we become better at producing things when we each focus on a limited range of activities
What is required for people to specialize?
A way to acquire the other goods they need
What is the comparative advantage of Greta in terms of production?
Wheat
What type of society uses markets to acquire goods?
Capitalist society
What does Greta have in the production of both crops?
Absolute advantage
What is the rate of exchange between wheat and apples in the trade?
1 ton of wheat = 40 apples
What is the rationale for trade between Greta and Carlos?
Because Carlos has comparative advantage in wheat
What is the result of trade between Greta and Carlos?
Total output between the two of them will increase
What is the absolute advantage of Greta in terms of production?
Both apples and wheat
What percentage of her time did Greta choose to spend producing apples at the outset?
40%
What is the comparative advantage of Carlos in terms of production?
Apples
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