This document contains ECS2602 assignment 1 semester 2 of 2024 expected questions and answers. the questions have been compiled from assessments done by other students who obtained 80% and above.
This question is based on the following data for country PORTHOS for 2020.
OSCAR DIURA
oscardiura@gmail.com Marginal propensity to consume = 0.5
0844708483 Autonomous consumption = R600 million
For FAC,ECS,MAC,DSC, TAX,STA,FIN,INV, QMI,BNU,
tutoring Investment spending = R40 million
Government spending = R280 million
Taxes = R300 million
An economist Dr Bright Sithole calculated that the gap between the current
equilibrium level of output and income and the full employment level of
income is R110 million.
By how much must government spending increase to reach full employment?
Select one:
A. 110 million
B. 55 million
C. 220 million
D. 770 million
Clear my choice
OSCAR DIURA
oscardiura@gmail.com
0844708483
For FAC,ECS,MAC,DSC, TAX,STA,FIN,INV, QMI,BNU,
tutoring
,Question 19 In our goods market model, an increase in taxes will result in _________
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Marked out of Select one:
1.00
A. an increase in disposable income.
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question B. a decrease in autonomous consumption.
C. an increase in savings.
D. a decrease in government spending.
Clear my choice
, This question is based on the following diagrams. Consider the consumption
functions of country A and country B.
Country A:
Country B:
Which one of the following statements is INCORRECT?
Select one:
A. The consumption function for country B is: C = 1 000 + 0.9YD.
B. In country A, autonomous consumption is higher than in country B.
C. If the disposable income level is R5 000 in both countries, then
consumption spending in country B is higher.
D. In country B, induced consumption is definitely higher than in country A if
the disposable income level is R5 000.
Clear my choice
OSCAR DIURA
oscardiura@gmail.com
0844708483
For FAC,ECS,MAC,DSC, TAX,STA,FIN,INV, QMI,BNU,
tutoring
, Given the following information, calculate the budget balance of the government:
Government spending = 100
Taxation = 80
Exports = 200
Imports = 300
Capital inflows = 60
Capital outflows = 30
Select one:
A. 30
B. –50
C. –100
D. –20
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