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ECS1601 Assignment 8 Year Module Distinction Guaranteed
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Assessment 8: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=235ECS1601-24-Y_ASS8 Introduction Assessment 8
QUIZ
Started on Saturday, 9 November 2024, 10:00 AM
State Finished
Completed on Saturday, 9 November 2024, 10:36 AM
Time taken 35 mins 38 secs
Marks 29.00/29.00
Grade 10.00 out of 10.00 (100%)
Question 1
Correct
Mark 1.00 out of 1.00
Which one of the following statements describe a leakage from the circular �ow of
income and spending in South Africa?
Select one:
a. Investment by a Lesotho beer company in a new brewery in South Africa
b. Defence expenditure by South African government, via contracts with local
companies.
c. The sale of fruit exports to the European Union
d. A decision by a major supermarket chain to sell chicken from Brazil
Question 2
Correct
Mark 1.00 out of 1.00
In the circular �ow of income and spending in South Africa,______households in the
goods market becomes______�rms.
Select one:
a. income to; income to.
b. spending by; income to.
c. income to; spending by.
d. spending by; spending by.
1 of 12 2024/11/09, 10
,Assessment 8: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=235
Question 3
Correct
Mark 1.00 out of 1.00
Suppose the SARB increases repo rate in an attempt to decrease in�ation. As a result,
the….
Select one:
a. price of interest-bearing securities or bonds in South Africa will increase.
b. cost of borrowing charged by banks will decrease.
c. quantity of money supply will increase by percentage increase of repo rate.
d. creation of money will slow down as demand for loans declines.
Question 4
Correct
Mark 1.00 out of 1.00
An open-market policy by the South African Reserve Bank may involve …
(a) selling of government bonds to increase the liquidity de�cit of the banks.
(b) buying of government bonds to increase the liquidity de�cit of the banks.
(c) selling of government bonds to contribute to lower interest rates.
(d) buying of government bonds to contribute to lower interest rates.
Select one:
a. only (a) and (c) are correct
b. only (b) and (c) are correct
c. only (b) and d) are correct
d. only (a) and (d) are correct
Question 5
Correct
Mark 1.00 out of 1.00
Which one of the following can lead to government failure?
Select one:
a. A decision by the government to decrease proportional income tax.
b. A municipal councillor’s decision to hire more unproductive workers to
attract votes.
c. Provision of public goods.
d. A decision by the South African Reserve Bank to applying expansionary
monetary policy.
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,Assessment 8: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=235
Question 6
Correct
Mark 1.00 out of 1.00
Which one of the following statements regarding government failure is correct?
Select one:
a. Rent-seeking behaviour implies that the interests of interest groups come
only after the interests of society at large
b. The idea that a government is not subject to competition prevents
government from falling
c. Government might fail due to actions of vote-seeking politicians
d. Government may fail due to the actions of bureaucrats who put the interest
of the general public �rst
Question 7
Correct
Mark 1.00 out of 1.00
A tax such as VAT would generally be viewed as …
Select one:
a. progressive, because most goods consumed by poor households are zero
rated
b. regressive, because low-income households spend a greater proportion
of their income on goods that attract VAT
c. regressive, because the VAT burden increases as household income rises
d. progressive, because the consumption expenditure of the rich is greater than
that of the poor
Question 8
Correct
Mark 1.00 out of 1.00
The foreign exchange rate is the rate at which
Select one:
a. the services of one country trade for the currency of another country
b. one country's goods trade for those of another country
c. one country's currency trades for Stiver provided by another country
d. the currency of one country trades for the goods of another country
e. currencies of different countries are exchanged
3 of 12 2024/11/09, 10
,Assessment 8: Attempt review https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=235
Question 9
Correct
Mark 1.00 out of 1.00
The rand (R) price of United States dollar ($) increased from R7 = $1 in 2010 to R14 =
$1 in 2019. Based on this statement, which of the following is true?
Select one:
a. The dollar has weakened.
b. The rand has depreciated.
c. The rand has appreciated.
d. Less units of rands are needed to buy a single unit of dollar.
Question 10
Correct
Mark 1.00 out of 1.00
The exchange rate is $0,50 = R5,00 If a car sells for $16 000, then its cost in Rands
would be
Select one:
a. R64 000
b. R160 000
c. R12 800
d. R16 000
e. R80 000
Question 11
Correct
Mark 1.00 out of 1.00
Which of the following statements about nominal GDP is true?
Select one:
a. it accounts for price changes
b. it accounts for in�ation
c. it grows when prices rise and output is constant
d. it is measured at base year prices
4 of 12 2024/11/09, 10
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