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Summary ecs1601 assessment 3 semester 2 2024
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ECS1601 ASSESSMENT 3 SEMESTER2 2024
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Question 1Source: World Bank, World Development Indicators (2019)
The distance between the diagonal and the Lorenz Curve is called the _______________
a.
area of inequality
b.
Gini index
c.
perfectly equal distribution
d.
cumulative percentage of income
Question 2
Source: World Bank, World Development Indicators (2019)
Based on the Lorenz Curve above, which country has the most unequal income distribution?
a.
Sweden
b.
South Africa
c.
India
d.
United States
Question 3
If Country X has a Gini coefficient of 0.7 and Country Y has a Gini coefficient of 0.4, which of the
following is correct?
a.
Both countries have an equal income distribution.
b.
Country X has a higher degree of inequality.
c.
Country Y has a higher degree of inequality.
d.
None of the above.
, Question 4
Which one of the following statements is not the macroeconomic objective used for measuring
the performance of the South African economy and that of other countries?
a.
The South African economy has experienced sluggish economic growth over the past five
years.
b.
The South African economy records the lowest rate of employment.
c.
South Africa records the highest increase in the immortality rate since the Covid-19 pandemic
and the July unrest.
d.
South Africa’s balance of payments has been stable over the past years.
Question 5
One of the main objectives of the South African Reserve Bank (SARB) is to maintain price
stability. Which statement/s is/are correct about the instrument that the SARB uses to achieve
this goal?
a) The SARB will try to maintain the inflation rate between 3 to 6% within the target range.
b) The SARB will ensure that a negative inflation rate is not attained, as this will decrease prices,
which is not desirable because it will discourage production.
c) The SARB will use inflation rate targeting to ensure that the price of the particular product or
service is stable.
a and b
b and c
c
b
a, b and c
Question 6
Suppose the total value of goods and services in South Africa increased from R250 million in
2021 to R350 million in 2022, while the quantity of goods and services produced remained the
same. Which of the following statements is correct?
a.
Nominal GDP increased and real GDP decreased.
b.
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