Exam (elaborations)
ECS1500 assignment 6 2024 | Due 9 September 2024
- Course
- Economics 1500 (ECS1500)
- Institution
- University Of South Africa (Unisa)
ecs1500 assignment 6 2024 Sept
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Started on Saturday, 24 August 2024, 12:45 AMState Finished
Completed on Saturday, 24 August 2024, 12:56 AM
Time taken 11 mins 45 secs
Marks 38.00/40.00
Grade 95.00 out of 100.00
Feedback Excellent work! You seem to understand the content of Learning Units 8, 9 and 10 well. Please
read the feedback provided for each question carefully and make sure you agree with the
explanations provided. Note that you are allowed to submit 3 attempts for this assessment and that
the marks for the best attempt will contribute towards your final credits.
Question 1
Correct
Mark 2.00 out of 2.00
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Question text
The exchange rate between the rand and the Chinese yuan is currently R2,12 = 1 yuan. Dynamic
Producers imports computer equipment from China. The price of one central processing unit is
550 yuan. What will the price of a central processing unit be in rand?
Select one:
a.
R550,00
b.
R212,00
c.
R1 166,00
d.
R259,43
Feedback
Your answer is correct.
The answer is R1 166,00.
The price of one Chinese yuan is equal to R2,12.
The price of 550 yuan is therefore equal to 550 x R2,12 = R1 166.
The correct answer is: R1 166,00
Question 2
Correct
Mark 2.00 out of 2.00
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Question text
The question below is based on the following information:
,The balance on the current account is ____________ million.
Select one:
a.
R378
b.
R240 515
c.
–R79 640
d.
R3 976 968
Feedback
Your answer is correct. Well done!
The correct answer is –R79 640.
The balance on the current account can be calculated as follows:
The correct answer is: –R79 640
,Question 3
Correct
Mark 2.00 out of 2.00
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Question text
A phrase often used by our government and in the media is "radical economic transformation".
To what does this phrase refer?
Select one:
a.
encouraging job creation and a more equitable income distribution.
b.
reducing regulation related to business, that is decreasing bureaucracy.
c.
supporting small business ventures as opposed to large business ventures.
d.
ensuring that land is distributed away from big farmers to small farmers.
e.
changing from a capitalist to a socialist economy.
Feedback
Your answer is correct
Different persons have different views on what this means. However, economists have to provide
the information to make sure that decisions are taken that will ensure that this outcome comes
about. Therefore, it is important that you understand what this phrase refers to.
If the economy changes from a capitalist to a socialist economy, this would imply a radical
economic change. However, if we read the speeches of politicians and ministers that are
advocating radical economic transformation it is clear that a total move away from capitalism
towards socialism is not on the cards. This is, in the author's opinion, a good thing, as several
countries in the world that experimented with socialism showed us that this is not a policy that
results in economic growth and an increase in welfare of the whole population. Therefore,
changing from a capitalist to a socialist economy is the not the correct answer.
Part of a policy of radical economic transformation should definitely be to encourage small
business and to limit the red tape and other regulation that hinders establishment of small
business ventures. However, this should never be at the expense of large business. Large
businesses, such as mines and international motor manufacturing companies, employ large
numbers of persons and play an important role in our economy. Some products and services
cannot be provided by smaller businesses, as it may not be cost effective to do so. Therefore,
radical economic transformation should encourage small business, but not at the cost of large
business. Decreasing regulation related to business should be part of radical economic
transformation; however, that is not all that radical economic transformation should entail.
Similar to large companies, large farmers play an important role in providing employment
opportunities and a stable supply of fresh produce in a country. Establishing small farmers can
contribute to creation of job opportunities and more equal land distribution, but it should not
happen at the expense of large farmers in such a way that it results in a loss of job opportunities
and a decrease in fresh produce in the country.
, Radical economic transformation should be aimed at creating employment opportunities and a
more equal income distribution, which will result in a higher standard of living for all in the
country.
The correct answer is: encouraging job creation and a more equitable income distribution.
Question 4
Correct
Mark 2.00 out of 2.00
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Question text
Which of the following statements is/are correct?
(1) Financial instruments are issued in secondary markets.
(2) Short-term financial instruments are issued in the money market.
(3) Trading on the financial markets only takes place in the JSE building in Johannesburg.
Select one:
a.
only 1 is correct
b.
only 3 is correct
c.
only 2 and 3 are correct
d.
only 1 and 2 are correct
e.
only 1 and 3 are correct
f.
only 2 is correct
g.
1, 2 and 3 are all correct
h.
No option is correct
Feedback
Incorrect. Financial instruments are issued in primary markets and, when these previously issued
instruments are traded again, we say that they trade in the secondary market. Option 1 is not
correct.
Short-term financial instruments are issued in the money market, while long-term financial
instruments are issued in the capital market. Option 2 is correct.
Trading on the financial market is not restricted to a particular space or building, but can take
place anywhere as long as the transaction is properly recorded and comply with all legal
regulation. Trading on the JSE stock exchange takes place on a computer system and is also
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