Assignment 6 for ECS1601 Questions and answers to assist with the assignment. Please note where the marks are allocated 1 as the correct answer and 0 where the answer is incorrect, then refer to applicable notes below the answers.
Started on Tuesday, 7 November 2023, 2:54 PM
State Finished
Completed on Tuesday, 7 November 2023, 3:26 PM
Time taken 31 mins 49 secs
Marks 23.00/25.00
Grade 92.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following statements are correct?
a) South African government raises most of its tax revenue through
personal income tax and value-added tax.
b) Personal income tax in South Africa is a progressive tax.
c) Government should implement restrictive scal policy measures during
a recession.
d) Privatization could improve e ciency, but it might have an adverse
effect on employment.
a. a, b, c
b. b, c, d
c. a, b, d
d. All of the statements are correct.
Value Added Tax (VAT) and Personal Income tax are the largest contributors to
tax revenue; the former is regressive whilst the latter is progressive. The
government would use expansionary scal policy in times of a recession. See
Chapter 3. The arguments for privatization are provided in Box 3-1.
The next question is based on the following information on the labour market
for Country X:
What is the unemployment rate based on the expanded de nition of
unemployment?_____.
a. 20,0%
b. 22,7%
c. 15,5%
d. 38,1%
The unemployment rate based on the expanded de nition can be calculated as
follows:
The expanded de nition of unemployment includes discouraged work-seekers.
Therefore, we add the number of discouraged work-seekers to the number of
unemployed persons:
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