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ECS1601 ASSIGNMENT 08 SEMESTER 2 2024 One of the objectives of the South African Reserve Bank is in ation targeting, and the in ation target for South Africa is between 3 and 6 per cent. There happens to be an excess demand for goods and services, which€2,73
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ECS1601 ASSIGNMENT 08 SEMESTER 2 2024 One of the objectives of the South African Reserve Bank is in ation targeting, and the in ation target for South Africa is between 3 and 6 per cent. There happens to be an excess demand for goods and services, which
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Cours
Economics IB (ECS1601)
Établissement
University Of South Africa (Unisa)
Book
Economics for South African Students
ECS1601 ASSIGNMENT 08 SEMESTER 2 2024
One of the objectives of the South African Reserve Bank is in ation targeting, and the in ation target for South Africa is
between 3 and 6 per cent. There happens to be an excess demand for goods and services, which has led to an increase in
the general ...
Started on Saturday, 9 November 2024, 10:05 AM
State Finished
Completed on Saturday, 9 November 2024, 10:28 AM
Time taken 23 mins 12 secs
Marks 29.00/29.00
Grade 10.00 out of 10.00 (100%)
Question 1
Correct
Mark 1.00 out of 1.00
Which one of the following statements describe a leakage from the circular flow of
income and spending in South Africa?
Select one:
a. Investment by a Lesotho beer company in a new brewery in South Africa
b. Defence expenditure by South African government, via contracts with local
companies.
c. The sale of fruit exports to the European Union
d. A decision by a major supermarket chain to sell chicken from Brazil
Question 2
Correct
Mark 1.00 out of 1.00
Which one of the following statements regarding stock and flow variables is
correct?
Select one:
a. Household income is an example of a stock variable.
b. Changes in the level of employment do not come about through flows.
c. Monthly saving is a flow variable that contributes to a stock variable.
d. Government spending is an example of a stock variable.
,Question 3
Correct
Mark 1.00 out of 1.00
A News Website headline reads: “SARB Reduces Repo Rate for Third Time This
Year.” This headline indicates that the SARB is most likely trying to…
Select one:
a. decrease the cost of credit.
b. increase the SARB current market rates.
c. increase the liquidity deficit of the private banks.
d. decrease inflationary pressures in the economy.
Question 4
Correct
Mark 1.00 out of 1.00
An open-market policy by the South African Reserve Bank may involve …
(a) selling of government bonds to increase the liquidity deficit of the banks.
(b) buying of government bonds to increase the liquidity deficit of the banks.
(c) selling of government bonds to contribute to lower interest rates.
(d) buying of government bonds to contribute to lower interest rates.
Select one:
a. only (a) and (c) are correct
b. only (b) and (c) are correct
c. only (b) and d) are correct
d. only (a) and (d) are correct
Question 5
Correct
Mark 1.00 out of 1.00
Which of the following could be expected should government plan to apply an
expansionary fiscal policy?
Select one:
a. an increase in the tax rate
b. a decrease in the interest rate
c. a decrease in government spending
d. an increase in the budget deficit
, Question 6
Correct
Mark 1.00 out of 1.00
Neutrality of taxes means that…
Select one:
a. the tax burden is spread equally amongst taxpayers.
b. taxes have a minimum distortionary effect on relative prices.
c. people pay taxes according to their ability to pay.
d. administration costs of a tax system are kept as low as possible.
Question 7
Correct
Mark 1.00 out of 1.00
In the country Kingdom, rich people pay a larger percentage of their income towards
tax than poor people. This type of tax satisfies which criteria for a good tax?
Select one:
a. Administrative simplicity
b. Horizontal equity
c. Vertical equity
d. Neutrality
Question 8
Correct
Mark 1.00 out of 1.00
A depreciation of the rand against the US dollar Will lead to a decrease in
Select one:
a. the price of imported goods in South Africa
b. the number of tourists from the USA visiting South Africa
c. the price of petrol in South Africa
d. the price of South African products sold in the USA
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