Exam (elaborations)

Ecs1601 Assignment 3 2024 (complete answers) due date 13 August 2024 distinction guaranteed

3 purchases

Course
Economics IB (ECS1601)

Institution
University Of South Africa (Unisa)

[Show more]

Preview 4 out of 60 pages

View example

Uploaded on August 10, 2024
Number of pages 60
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

ecs1601 assignment 3 2024 complete answers

ExpectviewTutors Member since 4 year 934 documents sold

ECS 1601
ASSIGNMENT 3
DUE DATE: 13 August 2024

Use this document as a guide to learn, compare and reference

,EXPECTVIEW TUTORS EXPECTVIEW TUTORS EXPECTVIEW TUTORS

EXPECTVIEW TUTORS EXPECTVIEW TUTORS

EXPECTVIEW TUTORS EXPECTVIEW TUTORS EXPECTVIEW TUTORS

EXPECTVIEW TUTORS EXPECTVIEW TUTORS

EXPECTVIEW TUTORS EXPECTVIEW TUTORS EXPECTVIEW TUTORS

EXPECTVIEW TUTORS 0665387925 EXPECTVIEW TUTORS

EXPECTVIEW TUTORS EXPECTVIEW TUTORS EXPECTVIEW TUTORS

EXPECTVIEW TUTORS EXPECTVIEW TUTORS

EXPECTVIEW TUTORS EXPECTVIEW TUTORS EXPECTVIEW TUTORS

EXPECTVIEW TUTORS EXPECTVIEW TUTORS

, Started on Saturday, 10 August 2024, 1:47 PM
State Finished
Completed on Saturday, 10 August 2024, 2:06 PM
Time taken 19 mins 23 secs
Marks 17.00/18.00
Grade 94.44 out of 100.00

Question 1 If GDP at constant prices increases from R900 000 to R990 000, it means that …
Correct
Mark 1.00 out of a. production has increased by 10%.
1.00
b. production has increased by 5% and prices increased by 5%.
Flag
question c. nominal GDP increased by 10%
d. prices increased by 10% during the year.

See section 5.1 of the textbook under the heading Measurement under current prices and constant prices. GDP at constant prices
measures the actual production that has taken place. Price increases are excluded from calculating GDP at constant. What we do know is
that the production has increased by R90 000, which is an increase of 10%.

Question 2 If GDP is greater than GDE,
Correct
Mark 1.00 out of a. the country has a deficit in the current account.
1.00
b. exports are greater than imports.
Flag
question c. taxes are more than government expenditure.
d. the country is consuming more than it is producing.

See section 5.2 on the difference between GDP and GDE. In this case, the difference lies in the fact that the contribution of the foreign
sector is positive to GDP (i.e X>Z).

Question 3 Which statement(s) regarding the national accounts is/are correct?
Correct
Mark 1.00 out of a) Fixed capital formation refers to the purchase of capital goods such as buildings, machinery, and equipment.
1.00 b) GDP at market prices = C + I + G + X – Z.
c) Gross domestic expenditure (GDE) does not include spending on imported goods and services.
Flag
question d) GNI at market prices = GDP at market prices – net primary income payments._____.

a. a, b, c and d
b. a, b and d
c. c
d. None of the above.

Fixed capital formation refers to spending on buildings, machinery and equipment used to facilitate economic activity. Fixed capital
formation forms part of the investment expenditure in the national accounts. Refer to section 5.2 on page 93 of the prescribed textbook.
GDP at market prices is calculated by adding consumption, investment, and government expenditure (C + I + G) to net exports (X – Z). Refer
to section 5.2 on page 94 of the prescribed textbook. Gross Domestic Expenditure (GDE) includes import expenditure (Z). Refer to section
5.2 on pages 94 and 95 of the prescribed textbook. Primary income payments are deducted from GDP at market prices. Refer to section 5.2
on page 92 of the prescribed textbook.

Question 4 Which of the following statements are correct examples of final goods and intermediate goods?
Incorrect
Mark 0.00 out of a) Thabo buys cake and milk for breakfast at the local supermarket.
1.00 b) Sne is a baker and buys milk, flour, sugar and so on to make delicious scones, which she sells to the community.
c) Sibusiso, a farmer, buys seed to plant vegetables.
Flag
question
a and b
b and c
b
c

, a, b and c

Final goods are sold to the consumer and the intermediate goods are sold to be used as part of the production process.

Question 5 One of the main objectives of the South African Reserve Bank (SARB) is to maintain price stability. Which statement/s is/are correct about
Correct the instrument that the SARB uses to achieve this goal?
Mark 1.00 out of
1.00 a) The SARB will try to maintain the inflation rate between 3 to 6% within the target range.
b) The SARB will ensure that a negative inflation rate is not attained, as this will decrease prices, which is not desirable because it will
Flag
question discourage production.
c) The SARB will use inflation rate targeting to ensure that the price of the particular product or service is stable.

a and b
b and c
c
b
a, b and c

Price stability refers to the general stability for all products or services, not an increase in a particular product or service. Some products
may become more expensive, for example, when demand for the product increase due to it being in fashion. This does not form part of
inflation but is due to market forces.

Question 6 Suppose the total value of goods and services in South Africa increased from R250 million in 2021 to R350 million in 2022, while the
Correct quantity of goods and services produced remained the same. Which of the following statements is correct?
Mark 1.00 out of
1.00
a. Nominal GDP increased and real GDP decreased.
Flag
question b. Nominal GDP is unchanged and real GDP increased.
c. Nominal GDP increased and real GDP is unchanged.
d. Nominal GDP decreased and real GDP is unchanged.

Nominal GDP can be due to an increase in the price level and /or an increase in real production. While real GDP the effect of inflation is
excluded form the real value.

Question 7 The table below contains hypothetical information about an economy that produces mangos and oranges. Suppose the base year is 2005.
Correct Use the information to answer the question bellow.
Mark 1.00 out of
1.00

Flag
question

What is the value of nominal GDP in 2006?

a. R800
b. R1 460

c. R1 060
d. R1 200

Your answer is correct.
Refer to section 5.2 of the textbook. The calculation is given as: Nominal GDP in 2006 = (R3 x 120) + (R12 x 70) = R360 + R840 = R1 200.

Question 8 Which of the following is likely to shift the consumption schedule upwards?

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ExpectviewTutors. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R50,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Start selling

Seller

Exam (elaborations) ·

Exam (elaborations)

Ecs1601 Assignment 3 2024 (complete answers) due date 13 August 2024 distinction guaranteed

Document information

Subjects

Connected book

More summaries for

Written for

Seller

Reviews received

Content preview

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Quick and easy check-out

Focus on what matters

Frequently asked questions

What do I get when I buy this document?

Satisfaction guarantee: how does it work?

Who am I buying this summary from?

Will I be stuck with a subscription?

Can Stuvia be trusted?

Recently viewed by you

Exam (elaborations) ·

Bar Exam Questions and Answers Rated A+