ECS1601 ASSESSMENT 3 OF 2024 EXPECTED QUESTIONS AND SOLUTIONS
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Course
Economics IB (ECS1601)
Institution
University Of South Africa (Unisa)
THIS DOCUMENT CONTAINS CAREFULLY WORKED OUT AND EXPLAINED ECS1601 ASSESSMENT 3 OF 2024 EXPECTED QUESTIONS AND SOLUTIONS. USE IT CAREFULLY TO SCORE ABOVE 80%
Started on Tuesday, 6 August 2024, 9:28 PM
State Finished
Completed on Tuesday, 6 August 2024, 9:47 PM OSCAR THE TUTOR
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Grade 100.00 out of 100.00 STA tutorials
Question 1 The next question is based on the information in the table below:
Correct The South African consumer price index (all urban areas) 2018 and 2019 (December
Mark 1.00 out
2016 = 100)
of 1.00
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question
Source: South African Reserve Bank, Quarterly Bulletin, December 2020
Which category of goods had the highest percentage change between 2018 and
2019?
a. Food and non-alcoholic beverages
b. Housing and utilities
c. Household contents and services
d. Clothing and footwear
By using the same formula to calculate the percentage change for each item,
housing and utilities show the highest percentage change:
,Question 2 If the newspaper reports that “the construction sector was responsible for 1,2% of
Correct the GDP growth”, then this implies that the GDP has been measured according to
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the
of 1.00
Flag a. expenditure method.
question
b. production method.
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d. nominal prices method. +27737560989
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The measurement of GDP used in this instance is production method, as it looks at
the value added by the sector. The statement does not discuss the respective
expenditures of the sector.
Question 3 If Country X has a Gini coefficient of 0.7 and Country Y has a Gini coefficient of 0.4,
Correct which of the following is correct?
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of 1.00
a. Both countries have an equal income distribution.
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question
b. Country X has a higher degree of inequality.
c. Country Y has a higher degree of inequality.
d. None of the above.
Country X has a higher degree of inequality. Country X has an income distribution
which is relatively more unequal than that of Country Y. Since the Gini coefficient of
0.7 for Country X is higher than that of Country Y, which is 0.4, it means that there is
a higher degree of inequality in Country X than in Country Y.
,Question 4 Which of the following statements are correct examples of final goods and
Correct intermediate goods?
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of 1.00 a) Thabo buys cake and milk for breakfast at the local supermarket.
b) Sne is a baker and buys milk, flour, sugar and so on to make delicious scones,
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question which she sells to the community.
c) Sibusiso, a farmer, buys seed to plant vegetables.
a and b
b and c
b
c
a, b and c
Final goods are sold to the consumer and the intermediate goods are sold to be
used as part of the production process.
Question 5 Which of the following statements regarding GDP is correct?_____.
Correct
Mark 1.00 out a. It is the total value of all intermediate goods and services produced in a
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year.
Flag b. Only the total value of all final goods and services produced within the
question
boundaries of a country is used to calculate GDP.
c. GDP includes the value of goods and services provided to countries
outside of South Africa.
d. The price of a laptop at a store is not included in the calculation of GDP.
The value of intermediate goods and services is not used in the calculation of GDP.
The total value of all final goods and services is used to calculate GDP in order to
avoid the problem of double counting. GDP only refers to the final goods and
services produced within the boundaries of South Africa in a particular period,
usually one year. Transactions between South Africa and the rest of the world are
recorded in the balance of payments. A laptop is a final good. Therefore, by the
time it arrives at the store for sale to the consumer, it includes the manufacturing,
packaging, transport, and distribution costs.
Question 6 Use the following table to calculate the GDP in Economy A:
Correct Item Value (R ‘000)
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of 1.00 Intermediate inputs 32 000
, Flag Labour cost 36 000
question
Profits 20 000
Which of the following is correct?
i. The total value added is equal to R 88 000.
ii. The GDP in the economy will be R 68 000.
iii. The correct way to calculate the GDP is through the income approach, which is
R 56 000.
a. (i) and (ii) are correct.
b. (ii) and (iii) are correct.
c. (i) is correct.
d. (i) and (iii) are correct.
See Section 5.1 of the prescribed book.
Question 7
The following question is based on the table below, which shows the GDP at
Correct current prices of country A for the years 1 and 2.
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of 1.00
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question
Which of the following statements are correct?
a. The increase in GDP from year 1 to year 2 can be the result of an increase in the
general price level.
b. The increase in GDP from year 1 to year 2 can be the result of an increase
in production.
c. From the given information, it is impossible to tell whether the 10% increase in
GDP from year 1 to year 2 represents economic growth.
a. All the statements are correct.
b. a and b
c. b and c
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