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ECS1601 assignment 2
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ECS1601 assignment 2
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8/20/23, 6:18 PM Assessment 1: Attempt reviewCS1601-23-S2 Online assessments Assessment 1
QUIZ
Started on Sunday, 20 August
2023, 5:05 PM
State Finished
Completed on Sunday, 20 August
2023, 6:15 PM
Time taken 1 hour 9 mins
Marks 26.00/40.00
Grade 65.00 out of 100.00
Question 1
Complete
Mark 2.00 out of 2.00
Which one of the following statements is
true about causality and correlation?
a. Causality between two variables
always implies correlation.
b. Causation between two variables
proves correlation.
c. Correlation between variables
occurs when two variables have
a relationship
d. An example of correlation is
when an increase in the value of
imports causes a rise in
economic growth.
Correlation does not imply causation.
Correlation between variables occurs
when two variables have a relationship.
Alt+Q
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=12435350&cmid=622819 1/19
,8/20/23, 6:18 PM Assessment 1: Attempt review
Question 2
Complete
Mark 0.00 out of 2.00
With reference to the circular flow of
goods and services, complete the
following sentence: Suppose that
Reneilwe runs a construction company,
where she uses capital and labour. After
completing projects, the payment for
services will remunerate _______to
________in the ________ market.
a. wages; entrepreneurship; factor
b. wages; labour; goods
c. interest; capital; factor
d. wages; capital; factor
Factors of production are compensated
for their respective factor incomes as per
the circular flow of income. See Section
1.4 of the prescribed book.
Question 3
Complete
Mark 2.00 out of 2.00
Households are confronted with………, but
with ………resources with which to satisfy
those wants.
a. limited wants; limited
b. limited wants; unlimited
c. unlimited wants; limited
d. unlimited wants; unlimited
Households are confronted with
unlimited wants, but with limited
resources to satisfy those wants.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=12435350&cmid=622819 2/19
,8/20/23, 6:18 PM Assessment 1: Attempt review
Question 4
Complete
Mark 0.00 out of 2.00
The National Treasury has announced an
increase in the capital gains tax rate to
45% to increase the funding of social
grants to the poor in South Africa. Which
objective of macroeconomic policy is the
government trying to achieve through this
decision?
a. full employment
b. balance of payments stability
c. equitable income distribution
d. economic growth
Capital gains tax is levied on profits from
real estate (land and buildings) and
financial assets (shares and bonds). In
other words, it is a tax levied on the
profits from selling real estate, on
dividends earned by shareholders in
companies and on interest earned by
bondholders. This tax is targeted at high-
income earners in a society with the
ability to pay. Revenues generated from
capital gains tax are allocated to social
grants for the poor to improve their
welfare. This is meant to reduce the
extent of inequality between the rich and
the poor. Therefore, the South African
government is trying to achieve the
macroeconomic objective of equitable
income distribution. See Section 1.7 on
page 13 of the prescribed book for a
detailed explanation of the five objectives
of macroeconomic policy.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=12435350&cmid=622819 3/19
, 8/20/23, 6:18 PM Assessment 1: Attempt review
Question 5
Complete
Mark 2.00 out of 2.00
South Africa exports gold, diamonds and
platinum to the United States (US) and
the United Kingdom (UK), generating
export income from all three
commodities. Which of the following
statements is correct?
(a) Export income generated from the
sale of gold, diamonds and platinum
abroad is an injection into the circular
flow of income and spending.
(b) When South Africa trades with the US
and the UK, it does not open
opportunities to sell other goods and
services abroad.
(c) If South Africa imports computers
from Dell Technologies in the US, this
constitutes a leakage from the circular
flow of income and spending.
(d) The GDP and the balance of payments
will not be affected by an increase in
imports.
a. a, b, c and d
b. b and d
c. a, b and c
d. a and c
Export income generated from the sale of
gold, diamonds and platinum abroad
represent an injection into the circular
flow of income and spending in the
economy. This is money coming into the
country, particularly an inflow of foreign
exchange into the balance of payments. It
not only boosts national income, but also
increases the amount of foreign reserves
which are important for balance of
payments stability.
When South Africa trades with the US and
the UK, it also presents an opportunity for
the country to sell other items to these
two trading partners. South Africa can
identify the market for intermediate or
final manufactured goods to sell to both
countries as well as to other countries. In
this way, South Africa can generate
export income from selling intermediate
or manufactured items. An additional
stream of foreign income is important for
spreading the risk of income loss across
different markets. This will ensure greater
balance of payments stability.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=12435350&cmid=622819 4/19
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