06/06/2023, 01:11 Assessment 6: Attempt review
Started on Tuesday, 6 June 2023, 1:02 AM
State Finished
Completed on Tuesday, 6 June 2023, 1:10 AM
Time taken 8 mins 29 secs
Marks 19.00/20.00
Grade 95.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
What are the three basic functions of money?
a) Medium of exchange
b) Store of value
c) Barter system
d) Unit of account
a. a and b
b. b and c
c. a, b and d
d. b, c and d
Money. as a unit of account, money as a medium of exchange, money as a store of value.
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,06/06/2023, 01:11 Assessment 6: Attempt review
Question 2
Correct
Mark 1.00 out of 1.00
Which one of the following statements regarding taxes is correct?
a. Taxes which distort relative prices are not neutral.
b.
The aim of taxes is to always change the behaviour of people.
c. Equity in the tax system ensures simplicity and neutrality.
d.
In a good tax system, compliance costs are equal to administration costs.
Your answer is correct.
When taxes distort relative prices, they affect decisions of consumers and investors in the economy and therefore such taxes are then not
neutral. Review the section on taxation in section 3.6.
Question 3
Correct
Mark 1.00 out of 1.00
….…. is an example of a stock variable, while ………… is an example of a flow variable.
a. Balance on savings account; assets
b. Wealth; investment
c. Profit; demand for labour
d. Gold production; unemployment
Wealth is an example of a stock variable, while investment is an example of a flow variable. A stock variable is measured at a specific point
in time. When the total value of your wealth (such as the market value of your house and the balance in your savings account) is measured at
a specific date, say on 31 December 2022, this is an example of a stock variable. A flow variable is measured over a period of time, say 12
months or 5 years. For example, the value of your retirement fund over a 5-year period, is an example of a flow variable.
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,06/06/2023, 01:11 Assessment 6: Attempt review
Question 4
Correct
Mark 1.00 out of 1.00
Which one of the following statements is correct regarding the national budget?
a. It is presented by the Governor of the South Africa Reserve Bank (SARB).
b. It is an instrument of fiscal policy.
c. It is presented biannually.
d. It is an instrument of monetary policy.
The national Budget is an instrument of fiscal policy.
Question 5
Correct
Mark 1.00 out of 1.00
Suppose Katlego owns a jewellery import business. Katlego imports necklaces and other jewellery from the United States. If there is a
depreciation in the Rand against the Dollar, which of the following is correct about Katlego’s business?
a. Katlego would need more Rands to purchase the jewellery and this will cause her to reduce her prices.
b. Katlego would need less Rands to purchase the jewellery and will reduce her prices.
c. Katlego would need less Rands to purchase the jewellery and this will raise her prices.
d. Katlego would need more Rands to purchase the jewellery and will raise her prices.
When the domestic exchange rate depreciates, it implies that more Rands are needed to purchase US-denominated goods and services. As
a consequence, the cost of inputs and final goods in the importing country (assuming the importing country experiences the depreciation)
will increase and this will increase the price of the goods supplied in the domestic market.
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, 06/06/2023, 01:11 Assessment 6: Attempt review
Question 6
Correct
Mark 1.00 out of 1.00
Which one of the following must be considered when the gross domestic product(GDP) is estimated?
a. John purchases shares to the value of R150 000 in Anglo American plc.
b. Peter invests in a 24-month tax-free deposit.
c. A firm buys Mpho, its sales representative, a new car.
d. Patrick, a university student, buys a second-hand car.
e. Anne, a civil pensioner, receives her monthly pension from the government.
Your answer is correct.
GDP is the total value of all final goods and services produced within the boundaries of a country in a particular period (usually one year).
An important aspect of this definition to note is that only final goods and services that are produced during a particular period are included
in the calculation of the GDP. The GDP is therefore concerned with the production of new goods and services(also called current production)
during a specific period. Goods produced during earlier periods and sold during the period under consideration are not included in the GDP
for the latter period. The GDP reflects only production that occurred during the period in question. Thus, Option four, which refers to the
purchase of a second-hand car, made in a previous year of period, will not be included in the estimation of the GDP for this period, as this is
not classified as a new good or part of current production. See pages 82 to 87 in the prescribed book.
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