This document serves as a guide to help reflect on my review of Assessment 6 for ECS1601. This is purely for reflection purposes and shows my decisions on the answers to the assessment as well as the marks I obtained for each answer.
Started on Monday, 5 June 2023, 7:55 PM
State Finished
Completed on Monday, 5 June 2023, 8:26 PM
Time taken 31 mins 18 secs
Marks 17.00/20.00
Grade 85.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
An increase in the national income will…
a. shift the money demand curve to the left.
b. increase the demand for passive balances.
c. shift the demand curve for passive balances to the right.
d. shift the demand curve for active balances to the right.
Refer to section 14.6 and table 14-1. The demand for money is not a function for the interest rate level only, but also of the national income
level. When national income increases, people and firms will increase their money demand for a transactional purpose. As a result, the
demand for active money balances increases and shifts the curve to the right.
The correct answer is: shift the demand curve for active balances to the right.
Question 2
Correct
Mark 1.00 out of 1.00
Value-Added Tax (VAT) is an example of a/an … tax
a. ad valorem
b. direct
c. excise duty
d. specific
Ad valorem is tax, which the amount is based on the value of the transaction or property and the charge is levied as a percentage of the
value of the item imposed and not the item’s quantity. For example, VAT in South Africa is levied at 15% regardless of the quantity of the
item.
The correct answer is: ad valorem
, Question 3
Correct
Mark 1.00 out of 1.00
MENU
In the circular flow of income and spending, government…
Dashboard / Courses / UNISA / 2023 / Semester 1 / ECS1601-23-S1 / Online assessments / Assessment 6
a. injects government spending into the factor market and collects taxes from the goods market.
b. withdraws taxes from firms and households.
c. provides public goods and services to the factor market and receives labour from the goods market.
d. withdraws government spending by providing it to firms and withdraws taxes from households.
e. provides public goods and services to households and withdraws taxes from the goods market
In the circular flow of production, income and spending, the government does inject government spending into the factor market, although
taxes are only collected from households and firms. Public goods and services are only provided to households and firms while labour is
received from the factor market.
The correct answer is: withdraws taxes from firms and households.
Question 4
Correct
Mark 1.00 out of 1.00
Which of the following are the criteria for a good tax system?
a. neutrality, transparency and equity
b. equality and administrative simplicity
c. effectiveness, equity and transparency
d. equity, neutrality and administrative simplicity
A good tax system is comprised of the elements of equity (Fairness), neutrality and administrative simplicity. See section 3.6 in the textbook.
The correct answer is: equity, neutrality and administrative simplicity
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller economicfactswarehouse. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.69. You're not tied to anything after your purchase.
