Documente Academic
Documente Profesional
Documente Cultură
ECS1601
Semesters 1 and 2
Department of Economics
CONTENTS
1 INTRODUCTION AND WELCOME .................................................................................................... 4
1.1 Tutorial material ........................................................................................................................... 4
2 PURPOSE OF AND OUTCOMES FOR THE MODULE ..................................................................... 4
2.1 Purpose ....................................................................................................................................... 4
2.2 Outcomes .................................................................................................................................... 4
3 CONTACT DETAILS.......................................................................................................................... 5
3.1 Lecturers ...................................................................................................................................... 5
3.2 University ..................................................................................................................................... 6
4 PRESCRIBED BOOK ........................................................................................................................ 6
5 STUDENT SUPPORT SERVICES ..................................................................................................... 7
5.1 Contact with fellow students ......................................................................................................... 7
5.2 myUnisa and your e-tutor ............................................................................................................. 7
5.3 Tutorial support programme ......................................................................................................... 8
6 STUDY PLAN .................................................................................................................................... 8
6.1 Studying Economics 1B ............................................................................................................... 8
6.2 Proposed study programme ......................................................................................................... 10
6.2.1 First semester ..................................................................................................................... 11
6.2.2 Second semester ................................................................................................................ 12
7 ASSESSMENT................................................................................................................................... 13
7.1 Assessment plan .......................................................................................................................... 13
7.2 Assessment of assignments ......................................................................................................... 13
7.3 Assessment of the examination.................................................................................................... 13
7.4 How does this work in practice? ................................................................................................... 13
7.4.1 Semester mark.................................................................................................................... 13
7.4.2 The examination mark......................................................................................................... 14
7.4.3 Final mark ........................................................................................................................... 14
8 ASSIGNMENTS ................................................................................................................................. 14
8.1 General remark ............................................................................................................................ 14
8.2 Submission of assignments .......................................................................................................... 15
8.3 Extension for submitting assignments .......................................................................................... 16
8.4 Feedback on assignments ........................................................................................................... 16
8.5 Unique assignment numbers ........................................................................................................ 16
8.6 Due dates of assignments ............................................................................................................ 16
8.6.1 First semester ..................................................................................................................... 16
8.6.2 Second semester ................................................................................................................ 17
8.7 First semester assignments ......................................................................................................... 18
8.7.1 Assignment 01 .................................................................................................................... 18
8.7.2 Assignment 02 .................................................................................................................... 27
8.7.3 Assignment 03 .................................................................................................................... 33
8.7.4 Assignment 04 .................................................................................................................... 41
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ECS1601/101
8.8 Second semester assignments .................................................................................................... 55
8.8.1 Assignment 01 .................................................................................................................... 55
8.8.2 Assignment 02 .................................................................................................................... 65
8.8.3 Assignment 03 .................................................................................................................... 72
8.8.4 Assignment 04 .................................................................................................................... 80
9 EXAMINATIONS ................................................................................................................................ 90
9.1 Examination period ...................................................................................................................... 90
9.2 Admission to the examination ...................................................................................................... 90
9.3 Transferring of examination .......................................................................................................... 90
9.4 The format of the examination paper ............................................................................................ 91
9.5 Previous examination papers ....................................................................................................... 91
9.6 Final year concession (FI) students .............................................................................................. 91
1.1
Tutorial material
The Department of Despatch should supply you with the following tutorial matter for this module:
Note:
We use tutorial letters to communicate with you. It is therefore important that you read all the
tutorial letters you receive immediately and carefully.
Some of the tutorial matter may not necessarily be available at registration. Tutorial matter that
was not available when you registered will be posted to you as soon as possible, but is also
available on myUnisa. If you did not receive all your study material, please contact the Despatch
Department at despatch@unisa.ac.za.
The 200 series tutorial letters contain the discussions of the assignments and will therefore only
be available after the closing date of the specific assignment.
If you have access to the internet, you can download the study guide and tutorial letters from the
myUnisa webpage.
If you experience any problems accessing the material electronically, please contact the myUnisa
helpdesk at myunisahelp@unisa.ac.za.
2.1
Purpose
Economics 1B introduces students to basic macroeconomic theory and variables and is useful to
students who intend to follow a career (academic or otherwise) in economic analysis or wish to
understand the functioning of a macroeconomic system.
2.2
Outcomes
After you have studied this module, you should be able to
ECS1601/101
More detailed outcomes can be found at the beginning of each learning unit in your study guide.
CONTACT DETAILS
3.1
Lecturers
We are available to assist you with any enquiries concerning the prescribed contents. If you have any
enquiries concerning administrative matters, please contact the correct administrative department.
You may contact the lecturers during weekdays between 08:00 and 16:00 as follows:
Via the Departments Administration Manager, who will redirect your call if necessary
Mr ST Mzangwa 012 433 4661
Email: You are welcome to contact us using the following email address:
First semester students
ECS1601-16-S1@unisa.ac.za
Second semester students
ECS1601-16-S2@unisa.ac.za
By mail: Letters to lecturers should be addressed to:
The Head
Department of Economics
PO Box 392
UNISA
0003
Please note that we expect Unisa personnel and students to communicate in a courteous manner
with each other. If you write an e-mail or a letter, you should start with a proper salutation, e.g. Dear
Ms van Zyl. If you are uncertain whom you are addressing, start with a neutral greeting such as Good
day. Indicate the purpose of your e-mail or letter very clearly. Use a proper form of leave-taking, e.g.
Yours sincerely, Respectfully, Regards etc. When you write your name you may use your first and
last name, e.g. Celia van Zyl or your title and surname, e.g. Mrs van Zyl. This will ensure that we
know how you prefer to be addressed when we reply to you. As we are in the business of education,
we need to ensure that our students get used to communicate in a proper manner at all times.
Therefore e-mails and letters that do not comply with these guidelines will not be answered, even if it
is sent from a cell phone.
Personal visits:
If you are in Pretoria, you are welcome to visit us at our offices. Please contact us to
make an appointment.
3.2
University
If you need to contact the university about matters not related to the content of this module (eg about
to whom you can write for different queries, important telephone and fax numbers, addresses and
details of the times certain facilities are open), please consult the publication my Studies @ Unisa.
Listed below are the email addresses of the administrative departments at Unisa that deal with most
student queries.
For administrative queries, for example registration matters, applications, change of address,
and course exemptions, contact the Department of Student Admission and Registrations, email
address undergrad@unisa.ac.za or econ@unisa.ac.za.
For queries dealing with lost study material and tutorial letters not received, contact the
Department of Despatch, email address despatch@unisa.ac.za.
For all queries regarding assignments, for example results, lost assignments, and problems
regarding unique numbers, contact the Department of Student Assessment Administration,
email address assign@unisa.ac.za.
Direct all examination queries such as dates, transfers, and results, to the Department of
Student Assessment Administration, e-mail address exams@unisa.ac.za and applications for
aegrotat examinations, email address aegrotats@unisa.ac.za.
For enquiries relating to tuition accounts and/or payments, contact the Department of
Finance, email address finan@unisa.ac.za.
Always have your student number at hand when you contact the University.
PRESCRIBED BOOK
The information regarding the prescribed textbook is as follows:
Philip Mohr, Louis Fourie and associates. 2015. Economics (for South African students). Fifth edition.
Pretoria: Van Schaik.
The prescribed book can be obtained from the University's official booksellers (refer to the list of
official booksellers and their addresses listed in the my Studies @ Unisa brochure). If you have
difficulty locating the book at these booksellers, please contact the Prescribed Book Section at
telephone 012 429 4152 or email vospresc@unisa.ac.za.
ECS1601/101
5.1
5.2
A weekly e-mail sent to your myLife address informing you about your study instructions for that
week (you can also find these under the Announcements tab)
Slides on each learning unit that will become available under Additional Resources. These have
been developed to take you through each learning unit and provide additional explanations where
necessary.
A Quiz on each learning unit that contains examples of the types of questions that you may expect
in the exam. You are encouraged to discuss these questions with your fellow students on the
Discussion forum on your e-tutor site once you are linked to an e-tutor. Your e-tutor will also
provide feedback on the discussion forum but only if you initiate the discussion, e.g. by providing
your suggested answer. Until you are linked to an e-tutor you can discuss the quiz questions on the
Discussion Forum on the ECS1601-16-S1 webpage (in the first semester) or to the ECS1601-16S2 webpage (in the second semester). Your lecturers will sporadically provide feedback if
necessary. The purpose of the quizzes is to give you an opportunity to engage with your study
material. Therefore we shall not provide the answers to the quizzes but we are willing to engage in
conversation about the quizzes.
During the semester each student will be allocated to an e-tutor. You will find your e-tutor webpage on
myUnisa. It will be named ECS1601-16-Sy-xxE where the y will be a 1 or a 2, depending on the
semester that you are registered for, and xx refers to your e-tutor group number. E-tutors have been
appointed to help you with any academic problem that you may encounter. You can expect your e-tutor
to provide academic support - if you have any questions about the contents of the module, please
discuss this with your e-tutor and fellow students on the Discussion forum once you are linked.
Should you find that your e-tutor is not providing this services, please contact one of your lectures so that
we can investigate the issue. The discussion forum on the main ECS1601-15-S1 or ECS1601-16-S2
webpage will only be monitored until students are allocated to e-tutor groups.
7
Provision is made on the e-tutor site for a "Discussion forum". This is the place where you can
communicate with your fellow students and with your e-tutor. You can discuss the contents of this
module with your fellow students and if you have problems, help each other. Your e-tutor will monitor
this discussion and also provide answers and insights.
To go to the myUnisa website, start at the main Unisa website, http://www.unisa.ac.za, and then click
on the Login to myUnisa link on the right-hand side of the screen. This should take you to the
myUnisa website. You can also go there directly by typing in http://my.unisa.ac.za.
5.3
STUDY PLAN
6.1
Studying Economics 1B
To study this module, you will need the following material:
You should start by reading Tutorial Letter 101. It deals with the general arrangements relating to this
module such as the prescribed textbook, the assessment system and the assignments.
As a general guideline, you should spend a minimum of 120 (notional) hours on studying this module.
This includes the time you work through your textbook and study guide, as well as the time you spend
doing assignments and preparing for the examination (it does not include the time used for attending
voluntary discussion classes). Some learning units in the study guide may require more time and
some less, depending on the complexity of the prescribed material. It would be to your advantage to
follow the study programme in this tutorial letter. Please note that the 120 hours allocated to this
module do not include any additional work you may have to do to improve certain skills. Students may
have different abilities and skills. Those with specific learning problems and/or lacking certain skills
(eg language skills) will obviously have to devote more time to this module. For the purposes of this
module, we accept that you can draw and interpret simple graphs, add, subtract, multiply and divide
and that you can read and write well enough to express yourself clearly in English. If this is not the
case, you will have to put in some extra time to improve these skills.
The learning units (or study guide) are the most important learning aids at your disposal. Consult your
learning unit before you start working through the textbook as your learning unit is meant to support
your textbook. It tells you which chapters and subsections of the textbook are prescribed for
examination purposes. Guidelines for studying the prescribed work are also clearly explained. The
learning units will guide you gradually through your textbook. If you work through the learning units
8
ECS1601/101
very thoroughly and complete all the activities in it correctly, you should be able to do the
assignments and pass the examination.
How to use the learning units:
The following steps are suggested:
Your textbook is very important and must be used in conjunction with the learning unit. Without a
textbook, it is not possible to succeed.
We have also compiled a set of slides on each learning unit. This will become available on the
ECS1601-16-S1 (during the first semester) or the ECS1601-16-S2 (during the second semester)
webpages every Monday. These slides will also guide you through the learning unit and explain some
aspects in more detail. These do not replace the study instructions in your learning unit, but will
definitely help you to understand better.
A quiz on each learning unit will also become available on the website at the same. It will contain
short questions and longer discussion-type questions that you can discuss with your fellow students
and your e-tutor on the Discussion forum on the e-tutor webpage once you are linked. Doing these
questions is a good way to practice for the exam and can (like the activity questions) be used to
evaluate if you have mastered a specific learning unit.
Four assignments per semester are included in this tutorial letter. Although examination admission is
obtained by submitting at least one of the two compulsory assignments, you can obtain a good
semester mark through the assignments. We strongly advise you to submit all four assignments.
From past experience we know that a strong correlation exists between the number of assignments
submitted (and passed) and the final mark.
Though the contents of the CD-ROM and the DVD do not cover the full spectrum of the prescribed
material, it does cover most of the "more difficult" areas in a simplified manner. Do take the time to
incorporate them in your study programme.
It takes a lot of discipline and hard work to pass Economics. However, if you follow the instructions in
this tutorial letter carefully and work consistently, you should succeed.
6.2
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ECS1601/101
First semester
WEEK
WEEK COMMENCING
ACTIVITY
26 January
1 February
8 February
15 February
22 February
22 February
29 February
7 March
14 March
14 March
21 March
10
28 March
29 March
11
4 April
12
11 April
13
18 April
18 April
25 April
14
11
Second semester
WEEK
WEEK COMMENCING
11 July
18 July
25 July
1 August
1 August
8 August
15 August
Work through sections 6.1 to 6.5 of learning unit 6 of the study guide.
22 August
Work through sections 6.6 to 6.8 of learning unit 6 of the study guide.
22 August
29 August
5 September
5 September
10
12 September
11
19 September
12
26 September
26 September
12
ACTIVITY
13
3 October
14
10 October
ECS1601/101
ASSESSMENT
7.1
Assessment plan
An integrated assessment system is used for this module. This means that your final mark is based
not only on your examination mark, but also on your performance during the semester.
Your final mark is calculated as follows:
Semester mark x 20% + Examination mark x 80%
In order to pass this module a final mark of 50% is required.
7.2
Assessment of assignments
The multiple-choice questions in Assignments 01 to 04 will be marked electronically in accordance
with mark-reading masters provided to the Assignment section by the module leader. One mark will
be awarded for each correct answer. No marks will be deducted for incorrect answers.
7.3
7.4
Semester mark
Your semester mark is based on your assignment marks. The four assignments that you submit
during the semester contribute towards your semester mark. Different weights are allocated to the
assignments. The first and second assignments contribute 20% each, while the third and the fourth
each contribute 30% to your semester mark.
If an assignment is not submitted or submitted late (for whatever reason), zero marks are awarded for
such assignment, for example:
13
Assignment
Marks achieved
Percentage %
x weight
Total
01
9
20
45
x 0,2
9%
(questions 1.1-1.20)
02
18
20
90
x 0,2
18%
03
not submitted or
submitted after the due date
x 0,3
50
x 0,3
15%
10
20
04
(questions 4.1-4.20)
Semester mark
42%
Final mark
As stated previously, the final mark is calculated as follows:
Semester mark (out of 100) x 20% + Examination mark (out of 100) x 80%
For example:
Suppose your semester mark is 42% and you get 60% in the examination. Your final mark will be
=
=
=
=
Note: Your semester mark will only be considered for purposes of calculating the final mark if you
attain a minimum mark of 40% in the examination (the sub-minimum rule).
ASSIGNMENTS
8.1
General remark
Assignments are seen as part of the learning material for this module. The assignments do not only
provide you with an opportunity to evaluate your understanding of the prescribed material (or to give
you feedback on your readiness for the examination), but they also make a contribution to your
semester mark.
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ECS1601/101
8.2
Submission of assignments
For detailed information and requirements as far as assignments are concerned, see my Studies @
Unisa. Clear guidelines on how to complete a mark-reading sheet are given.
You may submit your assignments either by post, by depositing them in the Unisa assignment boxes
or electronically via myUnisa. Please keep a copy of your completed assignments, especially
Assignments 01 and/or 02, which are compulsory for examination admission. In the event that the
assignment is lost before it can be assessed, you will have the necessary proof.
If you make use of the postal service, your assignments should be addressed to:
The Registrar
PO Box 392
UNISA
0003
Assignment boxes:
Note that the date of receipt appearing on the system (myUnisa) may differ from the date you
deposited your assignment at an Unisa assignment box (eg Pretoria, Johannesburg, Nelspruit). The
date when your assignment eventually reached the Unisa main campus will appear on the system.
The assignment boxes are emptied regularly and the date on which it is received in the box will be
stamped on the assignment envelope. So if your assignment is submitted at any Unisa box on or
before the closing date, it will still be marked and contribute to your semester mark even if the
actual capturing date on the system is after the closing date.
To submit an assignment via myUnisa:
Go to myUnisa.
Log in with your student number and password.
Select the module from the orange bar.
Click on Assignments in the left menu.
Click on the assignment number you want to submit.
Follow the instructions.
If you experience any problems submitting your assignment electronically, please contact the
myUnisa helpdesk at myUnisahelp@unisa.ac.za.
Unfortunately, it is not possible for the University or any lecturer to receive and process assignments
that are transmitted by means of facsimile or email. No assignments submitted by facsimile or email
will be marked.
15
8.3
Late registration, late receipt of study material, illness or operations, pressure of work, accidents,
disasters, labour strikes by personnel of the Post Office or any other unforeseen occurrence are NOT
valid reasons for extension.
All the submission dates are included in this tutorial letter. You should be able to arrange your study
programme in such a way that you can submit as many of the assignments as possible by the due
date.
8.4
Feedback on assignments
If you have not received your assignment results within three weeks of the closing date, please
contact the Assignment Section at assign@unisa.ac.za.
Assignment results will also be available on myUnisa three weeks after the closing date.
The solutions and explanations regarding the assignments will be posted to you in a tutorial letter
(Tutorial Letter 201 to Tutorial Letter 204) after the closing date of the relevant assignment. Please
work through these solutions. The tutorial letters will also be available on myUnisa after the closing
dates of the relevant assignment.
8.5
8.6
First semester
There are four multiple-choice assignments for the first semester. The students who are going to write
the examination in May must complete these assignments.
Assignment
number
Unique
number
Closing date
Content of assignment
01
595956
22 February
02
817644
14 March
Learning units 3 to 5
03
661805
29 March
04
680219
18 April
Learning units 8 to 11
The solutions and explanations regarding the assignments will be posted to you after the closing date
of the relevant assignment. Please work through these solutions.
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ECS1601/101
NOTE: Students registered for the first semester will not receive any answers to the four assignments
set for the second semester.
Second semester
There are four multiple-choice assignments for the second semester. The students who are going to
write the examination in October must complete these assignments.
Assignment
number
Unique
number
Closing date
Content of assignment
01
796619
1 August
02
793480
22 August
Learning units 3 to 5
03
646207
5 September
04
554137
26 September
Learning units 8 to 11
The solutions and explanations regarding the assignments will be posted to you after the closing date
of the relevant assignment. Please work through these solutions.
17
8.7
8.7.1 Assignment 01
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
595956
22 February 2016
Learning units 1 and 2 of the study guide and the relevant chapters of the
prescribed book
46 questions
20% of the semester mark
Through myUnisa or on a mark-reading sheet
1.2
1.3
[1]
[2]
[3]
[4]
In the simple circular flow of economic activity, goods and services flow via
[1]
[2]
[3]
[4]
[5]
1.4
18
The three major flows in the economy are total production, total income and total spending.
There are two sets of markets in a simple economy: goods markets and factor markets.
In the simple circular flow of economic activity, real flows of goods and production factors and
financial flows move in opposite directions.
Firms are buyers in goods markets and sellers in factor markets, while households are buyers in
factor markets and sellers in goods markets.
Firms are the largest purchasers of capital goods.
An entrepreneur is a risk taker in search of profits and does something new with existing
resources.
Capital refers to the tools and equipment used in the production of goods.
Labour includes the efforts, abilities and skills of people in the production of goods and services.
Money is used to produce goods and services.
ECS1601/101
1.5
1.6
1.7
1.8
profit for land, rent for labour, wages for capital and profit for the entrepreneur
rent for land, wages for labour, profit for capital and interest for the entrepreneur
wages for land, interest for labour, rent for capital and profit for the entrepreneur
rent for land, wages for labour, interest for capital and profit for the entrepreneur
[1]
[2]
[3]
[4]
only b is correct
a is incorrect and b is correct
both a and b are correct
both a and b are incorrect
In the circular flow of income and spending, that is, the basic flow of income and spending between
households and firms sup
plemented by the foreign, financial and government sectors
[1]
[2]
[3]
[4]
[5]
1.9
Which one of the following statements is incorrect regarding financial institutions in the circular flow
of income and spending?
[1]
[2]
[3]
[4]
[5]
Financial capital flows into the financial institutions from households and firms.
Financial institutions include banks and insurance companies.
The money, which households and firms provide to financial institutions, is called savings.
The spending by firms on capital equipment is called investment.
The role of financial institutions in the economy is to buy factors of production from households.
1.10 Which of the following is not an injection in the circular flow of income and spending?
[1]
[2]
[3]
[4]
investment
imports
government purchases
exports
19
1.12 In the 2015 budget speech, the Minister of Finance announced an increase in taxes amounting to
R17 billion in the 2015/16 financial year. In the context of the circular flow, this increase in taxes will
be a(n)
[1]
[2]
[3]
[4]
injection.
withdrawal.
saving.
investment.
medium of exchange
store of value
factor of production
unit of account
source of income
20
gold
stocks
demand deposits
credit cards
all of the above
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1.17 Using the table below, what is the M2 for the year 2013?
Monetary aggregates
R million
End of
2012
2013
2014
Banknotes
and coins
in
circulation
Cheque and
transmission
deposits
Other demand
deposits
Long-term
deposits
81 042
87 014
94 193
495 991
549 323
589 439
458 109
495 702
559 118
833 908
917 655
985 605
504 390
462 557
468 507
surplus unit
financial intermediary
the JSE
deficits unit
1.19 Which of the following is not a function of the South African Reserve Bank?
[1]
[2]
[3]
[4]
[5]
1.20 Which one of the following statements is true about the South African Reserve Bank?
[1]
[2]
[3]
[4]
The South African Reserve Bank uses an accommodation policy to drain excess liquidity from
the banking system.
It accepts deposits from individuals.
It is not the only bank that can issue notes.
It is the banker to the government.
1.21 Which one of the following statements about the demand for money is incorrect?
[1]
[2]
[3]
[4]
As the income level increases, the amount of money that individuals hold, decreases.
The quantity of money that people hold is negatively related to the interest rate level.
The income level and the interest rate level affect the quantity of money.
An increase in the interest rate leads to a decrease in the quantity of money created.
21
1.23 If the South African Reserve Bank decides to decrease the repo rate, the quantity of money created
will (ceteris paribus).
[1]
[2]
[3]
decrease
remain the same
increase
22
the rate at which the South African Reserve Bank advances loans to the government.
the best interest rate an investor can obtain on a long-term deposit.
the rate at which banks provide loans to their best clients.
the rate at which the South African Reserve Bank provides loans to other banks.
the rate at which the quantity of money demanded is equal to the quantity of money supplied.
ECS1601/101
1.25 Which of the following variables will not influence the quantity of money that an individual demands?
[1]
[2]
[3]
[4]
[5]
The quantity of money is determined by the interaction of the demand for money and interest
rate.
If interest rates are high, the quantity of money demanded will tend to be low.
If interest rates are low, the quantity of money demanded will tend to be high.
There is a positive relationship between interest rates and the quantity of money.
1.27 Which of the following is not part of the South African Reserve Bank's monetary policy framework?
[1]
[2]
[3]
[4]
[5]
inflation targeting
maintaining price stability
influencing interest rate levels
achieving sustainable economic growth
all of the above form part of the South African Reserve Bank's monetary policy framework
1.28 An open-market policy by the South African Reserve Bank may involve
(a)
(b)
(c)
(d)
[1]
[2]
[3]
[4]
23
1.30 If the South African Reserve Bank wants to decrease the money supply growth in order to curb
inflation, it may
[1]
[2]
[3]
[4]
As part of our drive to improve our service, the need arose to get a clearer picture of our student profiles.
To this end, a set of questions (1.31 to 1.46) were developed, which you must please answer.
1.31 How do you usually access the internet for studying purposes?
[1]
[2]
[3]
[4]
[5]
Laptop
Computer
Smart phone
Tablet
I do not have access.
1.32 Where do you usually access the internet for studying purposes?
[1]
[2]
[3]
[4]
[5]
From work.
From home.
Someone elses home.
Unisa computer laboratory.
Other.
1.33 How much of you data bundle per month do you have available for studying purposes?
[1]
[2]
[3]
[4]
[5]
1.34 The sections of the learning units that I had to study to complete this assignment
[1]
[2]
[3]
[4]
[5]
1.35 Indicate the value being added by the DVD during your completion of this assignment.
[1]
[2]
[3]
[4]
[5]
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ECS1601/101
1.36 Indicate the value being added by the CD-ROM during your completion of this assignment.
[1]
[2]
[3]
[4]
[5]
1.37 Did you make use of other resources on the WWW apart for myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I do not have access to the internet.
No, because of the cost of using the internet.
No, because the printed study material was sufficient for me to understand the work.
No, because I did not have the time to do it.
1.39 Which one of the following best describes your use of the e-tutor site on myUnisa?
[1]
[2]
[3]
[4]
[5]
1.41 Which one of the following best describes your experience with the services of the e-tutor?
[1]
[2]
[3]
[4]
[5]
25
1.42 Which of the following describes your experience with the Powerpoint slides for each learning unit
that are supplied on myUnisa best?
[1]
[2]
[3]
[4]
1.43 Which of the following describes your experience with the Powerpoint slides for each learning unit
that are supplied on myUnisa best?
[1]
[2]
[3]
[4]
[5]
1.44 Which of the following describes your experience with the quiz for each learning unit that are supplied
on myUnisa best?
[1]
[2]
[3]
[4]
1.45 Which of the following describes your experience with the quiz for each learning unit that are supplied
on myUnisa best?
[1]
[2]
[3]
[4]
[5]
1.46 Do you attend the tutor classes offered at the learning centres?
[1]
[2]
[3]
[4]
[5]
26
ECS1601/101
8.7.2 Assignment 02
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
817644
14 March 2016
Learning units 3 to 5 of the study guide and the relevant chapters
prescribed book
30 questions
20% of the semester mark
Through myUnisa or on a mark-reading sheet
of
the
Please answer this assignment on the prescribed answer sheet or by submitting it on myUnisa.
2.1
2.2
The role of government is threefold. What are the three broad functions of government?
[1]
[2]
[3]
[4]
2.3
2.5
Which one of the following is not a way that the government can intervene in the economy?
[1]
[2]
[3]
[4]
2.4
households only
firms only
both households and firms
the local government only
Rent seeking is said to occur when individuals try to empower themselves in the political arena
at the expense of society as a whole.
Government implements a price ceiling on rent.
When unions lobby for higher wages but are not prepared to increase productivity.
When companies form a cartel that agrees to sell their goods at a fixed price.
27
2.6
Which of the following could be expected should government plan to apply an expansionary fiscal
policy?
[1]
[2]
[3]
[4]
2.7
Which of the following correctly states the means by which government spending is financed?
[1]
[2]
[3]
[4]
Use the following quote from an article published by the World Bank in November 2014 to answer
questions 2.8 and 2.9.
Before taxes and social spending the income of the richest 10 per cent in South Africa is more than 1 000
times bigger than the poorest 10 per cent. After taxes and social spending, this gap falls so that the income
of the richest 10 per cent becomes 66 times bigger than the poorest 10 per cent (World Bank 2014).
2.8
This in an example of
[1]
[2]
[3
[4]
2.9
The taxes referred to in the World Bank article satisfy which criterium of a good tax?
[1]
[2]
[3]
[4]
neutrality
horizontal equity
vertical equity
administrative simplicity
2.11 If two countries have different opportunity costs of production for two goods, then
[1]
[2]
[3]
[4]
28
only the country with an absolute advantage in the production of both goods stands to gain from
trade.
each country should specialise in the production of the good for which it has a comparative
advantage.
each country should purchase inputs from the other country in order to gain an absolute
advantage.
in order to become self-sufficient, each country must specialise in the production of both goods
instead of trading with each other.
ECS1601/101
The following table shows the amount of apples and beef two countries produce on average in a month.
Use this information to answer questions 2.12 and 2.13.
APPLES
BEEF
COUNTRY 1
1 600 kg
64 kg
COUNTRY 2
9 000 kg
300 kg
country 2
country 1
neither country 1 nor country 2
both country 1 and country 2
2.14 What does it mean when there is a surplus on a countrys current account?
[1]
[2]
[3]
[4]
The value of a countrys assets is more than the value of its liabilities.
The value of a countrys liabilities is more than the value of its assets.
The value of a countrys exports is more than the value of its imports.
The value of a countrys imports is more than the value of its exports.
2.15 In what account in Botswanas balance of payments will the export of diamonds be recorded?
[1]
[2]
[3]
[4]
2.16 The rand price of the US dollar (USD) increased to R12,02 in March 2015 from R11,53 in February
2015. This means that the South African rand against the dollar and the dollar against the rand.
[1]
[2]
[3]
[4]
appreciated; appreciated
appreciated; depreciated
depreciated; appreciated
depreciated; depreciated
2.17 Which change in the rand-dollar foreign exchange market will cause the ZAR (rand) to appreciate and
the amount of USD traded daily to increase?
[1]
[2]
[3]
[4]
29
2.18 What type of event has to happen for the exchange rate to change from R8:$1 to R9:$1 and the
amount of USD traded daily to increase, as illustrated in the following graph?
[1]
[2]
[3]
[4]
2.19 What could the central bank do to lessen the effect of the depreciating rand?
[1]
[2]
[3]
[4]
price stability
budget surplus
economic growth
equitable distribution of income
2.21 Which of the following transactions could have been included in GDP?
[1]
[2]
[3]
[4]
30
ECS1601/101
2.22 If a country produces only bread, butter and milk, given the following information in the table, which
option regarding nominal GDP and real GDP is correct? (Use 2013 as the base year.)
Loafs of bread
Litres of milk
Bricks of butter
Price
Quantity
Price
Quantity
Price
Quantity
2013
150
12
90
200
2014
161
16
95
220
2015
170
17
102
10
250
[1]
[2]
[3]
[4]
2.23 If GDP at market prices is $500 million, taxes on products are $25 million and subsidies on products
are $10 million, what is the value of GDP at basic prices?
[1]
[2]
[3]
[4]
$535 million
$525 million
$510 million
$485 million
2.25 Which of the following will not be included in the GDP of Ghana but will be included in the GNI of
Ghana?
[1]
[2]
[3]
[4]
2.26 Which of the following people form part of the labour force?
[1]
[2]
[3]
[4]
2.28 Suppose the people of the country Alfa (currency A) only consume vegetables and meat. In 2015 the
average consumer in Alfa bought 10 kg vegetables (that costs A30 per kilogram) and 5 kg meat (that
costs A50 per kilogram). What was the cost of the typical consumer basket in Alfa?
[1]
[2]
[3]
[4]
A80
A250
A300
A550
2.29 The price of an average basket of goods and services in Alfas neighbouring country Beta (currency
B) are calculated at B150 for 2014, B165 for 2015 and B185 for 2016. What is Betas CPI for 2015 if
2014 is the base year?
[1]
[2]
[3]
[4]
110
90,90
123,33
112,12
2.30 Which of the following countries have the highest inequality? Important: Change all the values to the
same measurement, that is, either change the Gini coefficients to Gini indexes (or vice versa) and
then compare the values.
[1]
[2]
[3]
[4]
32
ECS1601/101
8.7.3 Assignment 03
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
661805
29 March 2016
Learning units 6 and 7 of the study guide and the relevant chapters of the
prescribed book
30 questions
30% of the semester mark
Through myUnisa or on a mark-reading sheet
Please answer this assignment on the prescribed answer sheet or by submitting it on myUnisa.
3.1
3.2
Which assumption is NOT applicable to a simple Keynesian model of a closed economy with no
government sector?
[1]
[2]
[3]
[4]
[5]
3.3
According to the Keynesian model, the factors that influence a households induced consumption are
the marginal propensity to consume and ..
[1]
[2]
[3]
[4]
[5]
3.4
If a households income falls from R20 000 to R17 000 and its consumption falls from R18 000 to R15
000, then its
[1]
[2]
[3]
[4]
[5]
33
3.5
If Nomsa Limited purchases a machine for R1 500 and the interest rate to finance this machine, which
will be replaced after a year, is 10%, the expected increase of sales due to this new machine will be
R1 850. What is the rate of return on this investment?
[1]
[2]
[3]
[4]
[5]
8,00%
10,00%
11,25%
12,12%
18,00%
3.6
3.7
34
autonomous consumption.
autonomous investment.
induced consumption.
equilibrium consumption.
autonomous spending.
autonomous consumption.
investment spending.
induced consumption.
autonomous spending.
none of the above.
ECS1601/101
3.8
3.9
If autonomous consumption is R30 billion, investment spending is R25 billion and the slope of
the consumption function is 0,8, then the equilibrium level of income is R275 billion.
If autonomous consumption is R65 billion, investment spending is R31 billion and the marginal
propensity to consume is 0,75, then the equilibrium level of income is R128 billion.
If investment spending is R45 billion, autonomous consumption is R5 billion and the slope of the
consumption function is 0,9, then the equilibrium level of income is R500 billion.
If autonomous consumption is R10 billion, investment spending is R20 billion and the marginal
propensity to consume is 0,6, then the equilibrium level of income is R75 billion.
If autonomous consumption is R20 billion, investment spending is R30 billion and the marginal
propensity to consume is 0,55, then the equilibrium level of income is R 111 billion.
Which one of the following statements about a simple Keynesian model without a government or
foreign sector is incorrect?
[1]
[2]
[3]
[4]
[5]
The greater the value of the marginal propensity to consume, the greater the value of the
multiplier becomes.
The size of the multiplier depends on the size of the marginal propensity to consume.
If the marginal propensity to consume is 0,75, then a R10 million increase in investment
spending will raise the equilibrium level of income by R7,5 million.
If the marginal propensity to consume is 0,6, then a R100 million increase in investment
spending will raise the equilibrium level of income by R250 million.
The equilibrium level of income can be obtained by multiplying the level of autonomous
spending by the multiplier.
Use a Keynesian model (without a government and foreign sector) to calculate the answers for questions
3.11 to 3.15.
Full employment output
Investment
Autonomous consumption
The marginal propensity to consume
=
=
=
=
R80 million
R20 million
R15 million
0,6.
35
15,00 million.
35,00 million.
63,64 million.
80,00 million.
115,00 million.
0,75.
3,75.
0,60.
0,40.
0,25.
1,25.
1,333.
1,538.
1,818.
2,5.
R45 million
R58 million
R67 million
R75 million
R87,5 million
3.15 If the marginal propensity to save increases by 0,10, what will the equilibrium level of income be?
[1]
[2]
[3]
[4]
[5]
R45 million
R55 million
R65 million
R70 million
R80 million
36
ECS1601/101
3.17 In the Keynesian model, government expenditure
[1]
[2]
[3]
[4]
[5]
does not appear in the aggregate expenditure function because it is always equal to
government expenditure.
is taken into account through its effect on consumption.
reduces equilibrium income because it reduces autonomous spending.
increases aggregate expenditure because government invariably increases its spending when
taxes rise.
is taken to be fixed because government expenditure is taken to be fixed.
3.20 You are given the following information about a model of a closed economy (without a foreign sector).
The autonomous part of consumption is R100 billion. The marginal propensity to consume is equal to
0,8. Investment is R460 billion. Government purchases of goods and services are R400 billion. The
tax rate is equal to 0,25. The equilibrium level of consumption is ________ and the equilibrium level
of income is ________
[1]
[2]
[3]
[4]
[5]
3.21 In a Keynesian model of a closed economy, if autonomous consumption is R100 million, investment
spending is R200 million, government spending is R300 million, the marginal propensity to consume
is 0,8 and the tax rate is 0,25 (or 25%), the equilibrium level of income is
[1]
[2]
[3]
[4]
[5]
R4 000 million.
R3 000 million.
R2 000 million.
R1 500 million.
R1 200 million.
37
Government can increase the equilibrium level of income by increasing government spending.
Government can reduce the equilibrium level of income by increasing taxes.
Government can increase the equilibrium level of income by decreasing taxes.
Government can reduce the equilibrium level of income by increasing government spending.
Government can reduce the equilibrium level of income by decreasing government spending.
3.24 Which of the following will not be affected by a change in the tax rate in the Keynesian model?
[1]
[2]
[3]
[4]
[5]
3.25 Which one of the following statements is not correct? In the Keynesian model, imports
[1]
[2]
[3]
[4]
[5]
Consider the following diagram, which depicts the Keynesian model of an open economy with a government,
and answer questions 3.26 and 3.27.
38
ECS1601/101
3.26 Y0 represents
[1]
[2]
[3]
[4]
[5]
= 5
= 10
= 15
= 12
= 17
6
=
7
=
3
10
=0
10.
3,3.
2,5.
0,3.
not possible to calculate from the available information.
39
40
R7,5 million.
R9 million.
R62,5 million.
R75 million.
not possible to calculate from the available information.
ECS1601/101
8.7.4 Assignment 04
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
680219
18 April 2016
Learning units 8 to 11 of the study guide and the relevant chapters of the
prescribed book
45 questions
30% of the semester mark
Through myUnisa or on a mark-reading sheet
Please answer this assignment on the prescribed answer sheet or by submitting it on myUnisa.
4.1
Ceteris paribus, which of the following will NOT be illustrated by a leftward shift of the AD curve?
[1]
[2]
[3]
[4]
[5]
4.2
4.3
[1]
[2]
[3]
[4]
[5]
Only a is correct.
Only c is correct.
Only a and b are correct.
Only b and c are correct.
All the statements are correct.
Which of the following policies can counter an adverse supply shock in the economy?
[1]
[2]
[3]
[4]
[5]
4.4
Fiscal policies
Monetary policies
Both fiscal and monetary policies
Incomes policy
No policy can be used as a counter-measure
Which of the following effects are responsible for the downward slope of the AD curve?
(a)
(b)
(c)
(d)
Wealth effect
Interest rate effect
International trade effect
Substitution effect
41
[1]
[2]
[3]
[4]
[5]
4.5
When comparing key assumptions in the Keynesian model and the AD-AS model, which one of the
following statements is correct?
[1]
[2]
[3]
[4]
[5]
4.6
42
Which of the following can be illustrated by the shift of the AD curve in the diagram?
(a)
(b)
(c)
[1]
[2]
[3]
[4]
[5]
Only a is correct.
Only b is correct.
Only c is correct.
Only a and b are correct.
All the statements are incorrect.
ECS1601/101
Question 4.7 is based on the following diagrams:
Figure A
4.7
Figure B
Based on the above diagrams, which of the following statements is/are correct?
(a)
(b)
(c)
Figure A shows increased productivity across the economy while figure B indicates production
costs increase.
Figure A shows improved weather conditions while figure B shows decreased productivity.
Figure A shows an oil price increase while figure B shows wage reduction.
[1]
[2]
[3]
[4]
[5]
Only a is correct
Only b is correct.
Only c is correct.
Only a and b are correct.
All the statements are correct.
43
4.8
Assuming fixed prices and wages and that there is a change in interest rate, which of the following
statements is/are correct?
(a)
4.9
(b)
(c)
The change in investment due to a change in interest rate equals the increase in autonomous
aggregate expenditure.
The change in the level of income will be the same as the change in investment.
There will be no multiplier effect as prices and wages are fixed.
[1]
[2]
[3]
[4]
[5]
Only a is correct.
Only b is correct.
Only c is correct.
Only b and c are correct.
None of the above is correct.
Assuming flexible prices and wages and a relatively elastic AS curve, a change in investment due to a
change in interest rate will ..
[1]
[2]
[3]
[4]
44
ECS1601/101
4.10 Suppose that the central bank reduces the repo rate. What will happen in the AD-AS model?
(a)
(b)
(c)
(d)
(e)
Investment decreases
Aggregate demand increases
Consumption increases
Income decreases
Prices increase
[1]
[2]
[3]
[4]
[5]
4.11 Given a relatively inelastic investment function, which of the following policies will be most successful
to stimulate the economy during a recession?
[1]
[2]
[3]
[4]
Consider the following scenario as illustrated by the diagram below and answer questions 4.12 and 4.13:
4.12 The illustrated scenario is referred to as a _________ and at 0 there is________ and ______ on the
balance of payments.
[1]
[2]
[3]
[4]
[5]
45
4.13 Under the scenario depicted above, in case of an open economy, what could remedy the situation?
[1]
[2]
[3]
[4]
Demand management policies and capital inflows would remedy the situation.
Neutral policy measures and capital inflows would remedy the situation.
Income policies would remedy the situation.
No policy can remedy the situation.
4.14 Which of the following statements provides the best definition of inflation?
[1]
[2]
[3]
[4]
Month
2013
2014
January
100,3
105,4
February
101,3
106,3
March
102,5
107,0
April
102,9
107,8
May
102,6
107,8
June
102,9
108,1
July
104,0
109,2
August
104,3
109,5
September
104,8
109,9
October
105,0
110,3
November
105,1
110,8
December
105,4
110,9
4.15 What is the inflation rate on an annual average basis for 2014?
(Hint: Round the answer to two digits after the decimal.)
[1]
[2]
[3]
[4]
[5]
46
0,05%
4,99%
5,22%
5,40%
10,90%
ECS1601/101
4.16 Given the following GDP figures for a hypothetical economy, calculate inflation for 2013.
2012
(R million)
2013
(R million)
2 799 874
2 988 411
2 300 745
2 410 383
[1]
[2]
[3]
[4]
[5]
1,29%
1,57%
1,65%
1,88%
2,38%
4.17 Which of the following statements is/are true with regards to the distribution effect of inflation?
(a)
(b)
(c)
Inflation distributes income and wealth from the young to the elderly.
The government benefits more from inflation than the private sector.
Inflation tends to hurt the rich far more than the poor and vulnerable.
[1]
[2]
[3]
[4]
Only a is correct.
Only b is correct.
Only c is correct.
None of the statements is correct.
4.18 Suppose there is reduction in interest rates in the economy. This may cause inflation and may
result in in production, income and employment.
[1]
[2]
[3]
[4]
cost-push; increases
cost push; decreases
demand-pull; increases
demand-pull; decreases
47
4.19 This is an example of inflation, which will production, income and employment. This phenomenon
is called .
[1]
[2]
[3]
[4]
[5]
4.20 When measuring unemployment, which of the following statements is/are true?
(a)
(c)
According to the strict definition, unemployed refers to persons over 15 years old who are not
paid or self-employed, who were available for paid employment or self-employment seven days
before the interview and actively sought paid employment and self-employment four weeks
preceding the interview.
The expanded or broad definition excludes persons who have the mere desire to find work,
which implies it excludes discouraged workers.
There is no difference between the strict and expanded definition of unemployment.
[1]
[2]
[3]
[4]
[5]
Only a is correct.
Only b is correct.
Only c is correct.
All the options are correct.
None of the alternatives [1], [2], [3] or [4] is correct.
(b)
4.21 Thabo graduated and has now resigned from his parliamentary job as a messenger to find a better
position. Thabos nephew, Thato, is employed every year for four months in a food processing
factory. Thabos mother worked in the hospitality industry and has been laid off due to a decrease in
tourists, which is attributed to a recessionary phase in the economy. How would each persons type of
unemployment be classified?
Thabo
Thato
Thabos mother
[1]
Frictional
Cyclical
Seasonal
[2]
Frictional
Seasonal
Cyclical
[3]
Structural
Seasonal
Cyclical
[4]
Frictional
Cyclical
Structural
[5]
Frictional
Cyclical
Seasonal
48
ECS1601/101
Question 4.23 is based on the following extract from a webpage from the website AfricaCheck that was
published on 28 November 2013:
http://africacheck.org/reports/is-sa-worse-off-now-than-19-years-ago-the-facts-behind-that-facebook-
4.23 Based on the information in the extract, which of the following statements is correct?
[1]
[2]
[3]
[4]
[5]
According to the strict definition, unemployment increased by 60% between 1994 and 2013.
According to the strict definition, unemployment decreased from 1994 to 2013.
The official unemployment rate in South Africa is lower than the unemployment rate based on
the expanded definition.
According to the expanded definition, unemployment increased by 35,6% in 2013.
According to the expanded definition, unemployment decreased from 1994 to 2013.
49
4.25 Which of the following factors will result in a rightward shift of the Phillips curve as illustrated?
[1]
[2]
[3]
[4]
[5]
4.26 The phenomenon illustrated above, which shows a rise in inflation accompanied by an increase in
unemployment, is called
[1]
[2]
[3]
[4]
[5]
50
hyperinflation.
stagflation.
demand-pull inflation.
inflation targeting.
None of the above.
ECS1601/101
Question 4.27 is based on the following diagram:
4.29 Which of the following is NOT a supply factor that affects economic growth?
[1]
[2]
[3]
[4]
[5]
Natural resources
Labour
Capital
Entrepreneurship
Exports
4.30 Which of the following is a demand factor that affects economic growth?
[1]
[2]
[3]
[4]
[5]
Natural resources
Labour
Capital
Entrepreneurship
Exports
51
As part of our drive to improve our service, the need arose to get a clearer picture of our students use of
additional support resources. To this end, a set of questions (4.31 to 4.45) was developed, which you must
please answer.
4.31 Did you attend the tutor classes offered by Unisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because of work commitments.
No, because of transport costs and/or transport problems to the regional centre.
No, because there are no tutorial classes in my region.
No, because the printed study material is sufficient for me to understand the work.
4.32 Did you make use of private tuition (Damelin, Varsity College, Boston and others)?
[1]
[2]
[3]
[4]
[5]
No.
Yes, and I paid less than R1 000 for the tuition.
Yes, and I paid between R1 000 and R2 500 for the tuition.
Yes, and I paid between R2 500 and R5 000 for the tuition.
Yes, and I paid more than R5 000 for the tuition.
4.33 Did you make use of the DVD to study for the course?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because it is not part of prescribed material.
No, because I have not sufficient access to a DVD machine.
No, because the printed study material was sufficient for me to understand the work.
No, because I did not have the time to use it.
4.34 Which one of the following best describes your use of the DVD?
[1]
[2]
[3]
[4]
[5]
4.35 Did you make use of the CD ROM to study for the course?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because it is not part of prescribed material.
No, because I do not have sufficient access to a computer.
No, because the printed study material was sufficient for me to understand the work.
No, because I did not have the time to use it.
4.36 Which one of the following best describes your use of the CD ROM?
[1]
[2]
[3]
[4]
[5]
52
ECS1601/101
4.37 Did you make use of video clips on myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I do not have access to the internet.
No, because I was unable to download and view the video clips.
No, because the printed study material was sufficient for me to understand the work.
No, because it is not part of the prescribed material.
Yes.
No, because I do not have access to the internet.
No, because I did not know about it.
No, because it is too unstructured.
No, because it contains too little discussion on module content.
4.39 Did you make use of the learning unit notes under additional resources on myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I did not know about it.
No, because I do not have access to the internet.
No, because I was unable to download it.
No, because I do not think it is important.
4.40 Did you make use of past exam papers which are posted on myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I did not know about it.
No, because I do not have access to the internet.
No, because I was unable to download it.
No, because I do not think it is important.
4.41 Did you read the tutorial letter containing information about the examination?
[1]
[2]
[3]
[4]
[5]
Yes.
No, I did not receive it.
No, I did not have time yet.
No, I shall look at it closer to the examination.
No, from past experience I know the content in the tutorial letter is not very useful.
4.42 Did you read the weekly communication that was sent to your myLife email address?
[1]
[2]
[3]
[4]
[5]
Yes.
No, I did not activate my myLife email address.
No, I do not have weekly access to the internet.
No, I do not have access to the internet.
No, I did not have time to read it.
53
4.43 Did you make use of other resources on the world-wide web?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I do not have access to the internet.
No, because of the cost of using the internet.
No, because the printed study material was sufficient for me to understand the work.
No, because I did not have the time to do it.
4.44 If you have made use of the DVD, CD ROM and video clips, which one did you find the most useful in
your studies?
[1]
[2]
[3]
[4]
the DVD
the CD ROM
the video clips
Not applicable, since I did not use all of them.
54
ECS1601/101
8.8
8.8.1 Assignment 01
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
796619
1 August 2016
Learning units 1 and 2 of the study guide and the relevant chapters of the
prescribed book
46 questions
20% of the semester mark
Through myUnisa or on a mark-reading sheet
1.2
1.3
The two major markets in the circular flow of income and expenditure are the
[1]
[2]
[3]
[4]
[5]
1.4
Money is the most important factor of production, as one cannot afford any of the other factors
of production without it.
All natural resources are renewable and can thus be re-used at different stages of the
production process.
Labour includes gold miners, civil servants, bank tellers and fleet managers.
Entrepreneurship is classified under labour as a factor of production, as entrepreneurs are
usually referred to as managers and are part of the organisations labour force.
Capital refers to the available financial resources that a business has for investment purposes.
55
1.5
Which one of the following statements on the remuneration of the factors of production is true?
[1]
[2]
[3]
[4]
[5]
1.6
In the circular flow of income and spending in South Africa, ________ firms in the factor market
becomes ________ households, while ________ households in the goods market becomes
________ firms. Expenditure by foreigners on South African products constitutes ________ the
circular flow.
[1]
[2]
[3]
[4]
[5]
1.7
[4]
[5]
injects government spending into the factor market and collects taxes from the goods market.
withdraws taxes from firms and households.
provides public goods and services to the factor market and receives labour from the goods
market.
withdraws government spending by providing it to firms and withdraws taxes from households.
provides public goods and services to households and withdraws taxes from the goods market.
56
1.9
income to; spending by; income to; spending by; a leakage from
income to; income to; spending by; spending by; an injection into
spending by; income to; spending by; income to; an injection into
spending by; spending by; income to; income to; a leakage from
production of; spending by; production of; income to; a leakage from
1.8
The remuneration for capital is profit, as the business aims to earn a profit on its financial
investments.
The remuneration for labour is rent, as workers are able to pay their rent with the money they
earn.
The remuneration for entrepreneurship is a salary, as entrepreneurs are also rewarded for their
efforts.
The remuneration for money is interest, as businesses deposit their money into interest-bearing
accounts.
The remuneration for natural resources is rent, as natural resources consist of all gifts of nature.
act as an intermediary between those who have surplus funds and those who have deficit
funds.
are not always useful, as households generally spend all their available funds.
create an injection into the flow by collecting savings from participants with surplus units only;
therefore, there is no need to provide funds to deficit units.
generally exist to collect investment spending and transform it into savings.
do not provide the goods market with any services at all.
ECS1601/101
1.10 Which of the following is a leakage from the circular flow of income and spending in South Africa?
[1]
[2]
[3]
[4]
[5]
defence expenditure by the South African government, via contracts with local military suppliers
government purchases of textbooks for state-run schools
the sale of export fruit to the European Union
investment by South African Breweries in a new brewery in South Africa
a decision by a major supermarket chain to sell Danish beer
factor market.
goods market.
foreign exchange market.
financial market.
money market.
Without exchange, specialised producers cannot satisfy their wants from their own production.
The division of labour takes place in production processes where each stage of the process is
performed by an individual worker or groups of workers.
Workers who specialise in the production process will only do so in parts of the process where
they have an absolute advantage.
The three main economic activities are production, consumption and exchange.
A person should specialise where the opportunity costs are the lowest.
1.13 If the Minister of Finance wanted to withdraw funds from the economy using the flows of income,
spending and production, you would advise him to
[1]
[2]
[3]
[4]
[5]
1.14 Money overcomes the problem of a double coincidence of wants inherent in the barter system
through its function as a
[1]
[2]
[3]
[4]
[5]
medium of exchange.
unit of account.
standard of deferred payment.
store of value.
financial intermediary.
57
M2 plus all short-term and medium-term deposits of the domestic private sector with monetary
institutions.
M1 plus all short-term and medium-term deposits of the domestic private sector with monetary
institutions.
M2 plus all long-term deposits of the domestic private sector with monetary institutions.
M2 plus all medium-term deposits of the domestic private sector with monetary institutions.
M1 plus all medium-term deposits of the domestic private sector with monetary institutions.
1.17 Based on your answer to question 16, use the table below to find the total comprehensive measure of
money for the year 2013.
Monetary aggregate
R million
End of
2013
Banknotes and
coins in
circulation
87 014
Cheque and
transmission
deposits
549 323
M1A
636 337
Other
demand
deposits
495 702
M1
1 132 039
M2
2 051 308
Longterm
deposits
462 557
Source: South African Reserve Bank Quarterly Bulletin, December 2014. Statistical tables.
[1]
[2]
[3]
[4]
[5]
1.18 Which of the following statements is true regarding the financial sector?
[1]
[2]
[3]
[4]
[5]
58
In most countries, governments are generally net borrowers and therefore not included among
surplus units.
Financial intermediaries make direct financing possible by acting as a link between surplus and
deficit units.
In South Africa, household savings are low and therefore, commercial banks generally do not
grant loans to big businesses.
Most transactions in the South African financial market involve goods, as South Africa has an
abundance of natural resources.
Entrepreneurs who need funds to start up a business are not classified as deficit units by the
government, and are thus encouraged to raise their own funds.
ECS1601/101
1.19 Which one of the following is a function of the South African Reserve Bank?
[1]
[2]
[3]
[4]
[5]
1.20 The function of the South African Reserve Bank as bank supervisor entails
[1]
[2]
[3]
[4]
[5]
providing approval to banks when they apply to provide personal loans to their clients.
reducing interbank settlement risks by reducing the potential for settlement default by one or
more banks.
making, issuing and destroying banknotes and coins.
achieving a sound, efficient banking system in the interest of depositors of banks and the
economy as a whole.
formulating an exchange rate policy.
The opportunity cost of holding money balances is the interest that could have been earned if
the money had been used to purchase interest-bearing assets instead.
Anyone who wishes to enter into transactions in a monetary economy has to hold money as a
medium of exchange.
The quantity of money demanded for transaction purposes depends on the level of income.
The demand for money as an asset is also called the speculative demand for money.
The quantity of money demanded for speculative purposes is negatively related to the interest
rate.
59
[1]
[2]
[3]
[4]
[5]
both the interest rate and the level of income are important in determining the demand for
money, which is inversely related to the interest rate.
only the interest rate is important in determining the demand for money, and therefore, the
demand for money curve is negatively sloped.
an increase in the level of income in the economy will result in a movement along the curve, as
indicated by the change in equilibrium from E0 to E1.
the position of the demand curve for money is determined by the demand for passive balances,
which is determined by the level of income.
the demand for money is not a function of income, as the South African Reserve Bank can
provide people with loans should they have a shortage of income, and therefore, income is not
indicated on the graph.
60
is determined by the South African Reserve Bank, as this institution has the authority to print
and distribute money.
is determined by the government, as they have the authority to make fiscal decisions.
does not exist.
is determined by commercial banks that provide loans to clients.
is an upward-sloping curve independent of money demand.
ECS1601/101
1.26 The quantity of money in an economy is
[1]
[2]
[3]
[4]
[5]
determined by the interaction between the cost of credit and the demand for money.
fixed by the South African Reserve Bank.
dependent on the money supplied.
determined by the Minister of Finance.
decided jointly by the Reserve Bank and the government, as it has important implications for
inflation targeting.
Monetary policy in South Africa is implemented by the South African Reserve Bank (SARB).
The key decision-making unit is the Monetary Policy Committee of the SARB.
The key instrument of monetary policy is the repurchase rate (repo rate).
The SARBs main objective is to control the growth of the money stock.
The SARB pursues a formal inflation target, set by the Minister of Finance, in conjunction with
the SARB.
In South Africa, money is created exclusively by the South African Reserve Bank.
The stock of money consists largely of bank deposits and banks create these deposits by
making loans.
Money creation by banks is constrained by the demand for bank loans.
The South African Reserve Bank uses changes in interest rates as an attempt to regulate the
rate at which new money is created.
The stock (quantity) of money in the economy is essentially determined by the interaction of the
interest rate and the demand for money. There is no independent supply of money.
1.30 Which tool would the South African Reserve Bank use to achieve these targets?
[1]
[2]
[3]
[4]
[5]
61
As part of our drive to improve our service, the need arose to get a clearer picture of our student profiles.
To this end, a set of questions (1.31 to 1.46) were developed, which you must please answer.
1.31 How do you usually access the internet for studying purposes?
[1]
[2]
[3]
[4]
[5]
Laptop
Computer
Smart phone
Tablet
I do not have access.
1.32 Where do you usually access the internet for studying purposes?
[1]
[2]
[3]
[4]
[5]
From work.
From home.
Someone elses home.
Unisa computer laboratory.
Other.
1.33 How much of you data bundle per month do you have available for studying purposes?
[1]
[2]
[3]
[4]
[5]
1.34 The sections of the learning units that I had to study to complete this assignment
[1]
[2]
[3]
[4]
[5]
1.35 Indicate the value being added by the DVD during your completion of this assignment.
[1]
[2]
[3]
[4]
[5]
1.36 Indicate the value being added by the CD-ROM during your completion of this assignment.
[1]
[2]
[3]
[4]
[5]
62
ECS1601/101
1.37 Did you make use of other resources on the WWW apart for myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I do not have access to the internet.
No, because of the cost of using the internet.
No, because the printed study material was sufficient for me to understand the work.
No, because I did not have the time to do it.
1.39 Which one of the following best describes your use of the e-tutor site on myUnisa?
[1]
[2]
[3]
[4]
[5]
1.41 Which one of the following best describes your experience with the services of the e-tutor?
[1]
[2]
[3]
[4]
[5]
1.42 Which of the following describes your experience with the Powerpoint slides for each learning unit
that are supplied on myUnisa best?
[1]
[2]
[3]
[4]
63
1.43 Which of the following describes your experience with the Powerpoint slides for each learning unit
that are supplied on myUnisa best?
[1]
[2]
[3]
[4]
[5]
1.44 Which of the following describes your experience with the quiz for each learning unit that are supplied
on myUnisa best?
[1]
[2]
[3]
[4]
1.45 Which of the following describes your experience with the quiz for each learning unit that are supplied
on myUnisa best?
[1]
[2]
[3]
[4]
[5]
1.46 Do you attend the tutor classes offered at the learning centres?
[1]
[2]
[3]
[4]
[5]
64
ECS1601/101
8.8.2 Assignment 02
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
793480
22 August 2016
Learning units 3 to 5 of the study guide and the relevant chapters of the
prescribed book
30 questions
20% of the semester mark
Through myUnisa or on a mark-reading sheet
Please answer this assignment on the prescribed answer sheet or submit it on myUnisa.
2.1
The policy that comprises the composition and level of public expenditure, taxation and borrowing is
commonly referred to as _______.
[1]
[2]
[3]
[4]
2.2
2.3
foreign borrowing
taxes from households and firms
domestic borrowing
borrowing from government itself
2.4
monetary policy
government policy
taxation policy
fiscal policy
central government, the South African Reserve Bank, local government and public corporations
central government, regional government, local government and public corporations
the treasury, central government, local government and public corporations
the South African Reserve Bank, the treasury, central government and local government
Which of the following correctly explains the interaction between government, households and firms in
an economy?
[1]
[2]
[3]
[4]
65
2.5
In the past two years, the issue of nationalisation versus privatisation has become significant in
political debates in South Africa. In this context, what does nationalisation refer to?
[1]
[2]
[3]
[4]
2.6
2.7
2.9
At the end of February 2015, the Minister of Finance announced in the budget speech that income tax
rate would increase by 1 percent. This planned policy is an example of __________ .
[1]
[2]
[3]
[4]
2.8
Which one of the following correctly indicates the appropriate policy action for government?
[1]
[2]
[3]
[4]
2.10 In the event of a recession, what will be the appropriate fiscal policy action and how does this affect
the budget deficit/surplus?
[1]
[2]
[3]
[4]
ECS1601/101
2.12 Which one of the following statements regarding government failure is correct?
[1]
[2]
[3]
[4]
Government may fail due to the actions of bureaucrats who put the interest of the general public
first.
Government might fail due to actions of vote-seeking politicians.
The idea that a government is not subject to competition prevents government from failing.
Rent-seeking behaviour implies that the interests of interest groups come only after the interests
of society at large.
Answer questions 2.14 and 2.15 below based on the information in the following table, where the numbers
represent the number of units of each good produced.
South Africa
Botswana
Grapes
Textiles
2.14 South Africa has an absolute advantage in the production of __________ while Botswana has an
absolute advantage in the production of _________.
[1]
[2]
[3]
[4]
grapes, textiles.
textiles, grapes.
South Africa does not have an absolute advantage in the production of grapes or textiles.
Botswana does not have an absolute advantage in the production of grapes or textiles.
grapes
textiles
grapes and textiles
neither grapes nor textiles
2.16 According to the theory of comparative advantage, a necessary condition for a country to export a
good is that _______ .
[1]
[2]
[3]
[4]
the country can produce it using less labour than its trading partners
the wage rate in producing the good is lower in the country compared to its trading partners
the country has an absolute advantage in producing the good compared to its trading partners
the cost of producing the good relative to other goods, is lower compared to that of the countrys
trading partners
67
Use the table below showing the exchange rates between various currencies and the South African rand to
answer question 2.18.
2014 exchange rate (per South
African rand)
Botswana pula
0,99
1,11
Namibian dollar
3,56
4,23
Ghanaian cedi
Currency
2.18 Between 2014 and 2015, the rand __________against the pula and ________ against the Ghanaian
cedi and __________ against the Namibian dollar.
[1]
[2]
[3]
[4]
2.20 The quantity of South African rand supplied will increase if _______ .
[1]
[2]
[3]
[4]
68
ECS1601/101
2.21 If the interest rate on South African assets increases, _____ .
[1]
[2]
[3]
[4]
Use the figure below of a hypothetical foreign exchange market to answer question 2.22.
D3
D2
D1
2.22 The shift in the demand curve from D2 to D3 can be attributed to _______ .
[1]
[2]
[3]
[4]
2.23 Assume that the rand-dollar exchange rate is above the equilibrium exchange rate. One would expect
that there will be a ___________ of dollars and the exchange rate will __________ to the equilibrium
level.
[1]
[2]
[3]
[4]
surplus, fall
surplus, rise
shortage, fall
shortage, rise
2.24 Which of the following cannot be found under the balance of payments accounts?
[1]
[2]
[3]
[4]
current account
capital transfer account
national budget
unrecorded transactions
69
2.25 In the balance of payment account, records of payments for imported goods and services as well as
of exported goods and services are recorded in the _________ .
[1]
[2]
[3]
[4]
capital account
current account
import account
export account
2.26 Last year in the Zamunda Kingdom, 50 million people worked, and 10 million people were looking for
employment but did not find anything. A further 8 million people were not looking for work and did not
get paid. 35 million people are under the age of 16 years. According to the strict definition, the
unemployment rate in Zamunda last year was ___________ .
[1]
[2]
[3]
[4]
16,7%
20%
55,5%
80%
Use the table below showing a representative basket of goods used to calculate the CPI to answer the
question that follows.
QUANTITY OF GOOD A=50
2013 prices
R2
R2
R2
2014 prices
R6
R10
R20
20
300
600
1800
2.29 In 2013, Mr Joubert bought a used 2012 Kia Rio from his colleague for his wife. In addition, he bought
a new 2013 South African produced Ford Ranger for himself and sold the 2008 Ford Figo he was
using to his brother-in-law. Which of these purchases will be included in the GDP in 2013?
[1]
[2]
[3]
[4]
70
ECS1601/101
2.30 In Economics, it is important that the distinction between real and nominal GDP be made in order to
determine ______ .
[1]
[2]
[3]
[4]
71
8.8.3 Assignment 03
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
646207
5 September 2016
Learning units 6 and 7 of the study guide and the relevant chapters of the
prescribed book
30 questions
30% of the semester mark
Through myUnisa or on a mark-reading sheet
Please answer this assignment on the prescribed answer sheet or by submitting it on myUnisa.
3.1
3.2
A = Y implies that spending is equal to production and income but disequilibrium exists.
A > Y implies that the level of production and income will increase.
A < Y implies that the level of production and income will increase.
A > Y implies that the level of production and income will decrease.
3.3
(a)
(b)
(c)
[1]
[2]
[3]
[4]
[5]
3.4
Given an autonomous spending of R100 and a marginal propensity to save of 0,35, what is the
consumption function?
[1]
[2]
[3]
[4]
72
100 + 0,35Y
100 + 0,65Y
-100 + 0,35Y
-100 + 0,65Y
ECS1601/101
3.5
An investment decision involves the cost of capital goods, the interest rate and expected
revenue.
Investment is inversely related to the interest rate.
Investment is also related to expectations and the level of national income.
[1]
[2]
[3]
[4]
[5]
3.6
[1]
[2]
[3]
[4]
73
3.8
3.9
A = 1 000 + 0,25Y
A = 1 000 + 0,75Y
A = 1 100 + 0,25Y
A = 1 100 + 0,75Y
Y = 1 000/0,25
Y = 1 000/0,75
Y = 1 100/0,25
Y = 1 100/0,75
The multiplier is the ratio between a change in income and a change in autonomous spending.
The multiplier is the ratio between a change in income and a change in induced spending.
Mathematically, the multiplier is expressed as 1/ [1-c] = Y/
[1]
[2]
[3]
[4]
74
ECS1601/101
3.10 Which of the following factors will be illustrated by the upward shift of the aggregate spending curve?
[1]
[2]
[3]
[4]
If all households increase their marginal propensity to consume and this is the paradox of thrift.
If all households reduce their saving at every income level and this is the paradox of thrift.
If an individual household reduces its saving rate and this is regarded as the paradox of thrift.
If all households increase their marginal propensity to save and this is the paradox of thrift.
0,9; 10.
0,1; 1,11.
0,1; 10.
0,9; 1,11.
S = 0,1Y
S = -1 500 + 0,1Y
S = 1 500 + 0,9Y
S = 1 500 + 0,1Y
S = -1 500 + 0,9Y
75
3.15 Suppose autonomous investment increases from 100 to 200 in the diagram, what will the change in
national income be?
[1]
[2]
[3]
[4]
220
1 000
1 500
2 220
3.16 Suppose government spending (with no taxes) is introduced to the simple Keynesian model, what
would happen to the multiplier effect?
[1]
[2]
[3]
[4]
3.17 Suppose taxes are introduced as an endogenous variable in our model, what will happen to the slope
of the consumption function?
[1]
[2]
[3]
[4]
3.18 Again suppose an endogenous tax variable in our model, what will happen to the size of the
multiplier?
[1]
[2]
[3]
[4]
3.19 Given a consumption function C = 1 000 + 0,4Y with a proportional income tax rate of 40%, what is
the multiplier? Round off your answer to two digits after the decimal.
[1]
[2]
[3]
[4]
1,32
1,70
2,50
2,78
3.20 Given the following functions: C = 1 000 + 0,4Y, = 400 and = 100, suppose there is a change in
government expenditure from R400 to R500 but the proportional income tax rate remains 40%. What
will the equilibrium level of income Y be? (Hint: Round off the answer in question 19 to two digits after
the decimal to obtain the answer for question 3.20.)
[1]
[2]
[3]
[4]
76
2 112
2 000
1 848
1 452
ECS1601/101
3.21 Suppose the government implements an expansionary fiscal policy to finance e-toll gantries.
Required Y = R1 000, the marginal propensity to consume is 50% and the proportional tax rate is
40%. What is the size of the multiplier? Round off you answer to two digits after the decimal.
[1]
[2]
[3]
[4]
1,00
1,32
1,43
2,50
3.22 How much will government expenditure have to change to reach the required change in equilibrium
income given the information in question 3.21?
[1]
[2]
[3]
[4]
R699
R800
R1 000
R1 200
3.23 Suppose sanctions are imposed on a small open economy which leads to a decrease in autonomous
imports. What will happen to the aggregate expenditure curve if exports remain unchanged?
[1]
[2]
[3]
[4]
3.24 Suppose the sanctions mentioned in question 3.23 also decreased the marginal propensity to import,
how will the size of the multiplier be affected?
[1]
[2]
[3]
77
3.26 Which one of the following is not true with regard to an increase in proportional tax in the Keynesian
model?
[1]
[2]
[3]
[4]
3.27 Which one of the following is true with regard to an increase in government expenditure in the
Keynesian model?
[1]
[2]
[3]
[4]
Questions 3.28 to 3.30 are based on the following diagram and the information provided below:
78
R200.
R300.
R500.
R800.
R1 100.
ECS1601/101
3.29 What is the equilibrium level of income Y* in the given model?
(Hint: If you use the multiplier to calculate the equilibrium income level, round it off to three digits after
the decimal. Round the final answer off to the closest full rand.)
[1]
[2]
[3]
[4]
[5]
R1 598
R1 692
R1 757
R1 800
R2 000
3.30 Is the government running a budget deficit or surplus and by how much (round it off to the closest full
rand)?
[1]
[2]
[3]
[4]
[5]
a deficit of R77
a surplus of R77
a deficit of R126
a surplus of R126
a deficit of R423
79
8.8.4 Assignment 04
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
554137
26 September 2016
Learning units 8 to 11 of the study guide and the relevant chapters of the
prescribed book
45 questions
30% of the semester mark
Through myUnisa or on a mark-reading sheet
Please answer this assignment on the prescribed answer sheet or by submitting it on myUnisa.
4.1
[1]
[2]
[3]
[4]
[5]
4.2
If income is below the full-employment level, what would be the result of an expansionary fiscal
policy?
[1]
[2]
[3]
[4]
80
If income is below the full-employment level, what would be the result of a contractionary monetary
policy?
[1]
[2]
[3]
[4]
4.4
a, b, c and d
only a and d
only b and c
only b and d
only a
A contractionary fiscal policy combined with an increase in the oil price will cause ...
[1]
[2]
[3]
[4]
4.3
ECS1601/101
4.5
4.6
The Keynesian model can be used to study the impact of changes in monetary policy.
The AD-AS model can be used to study the impact of changes in the general level of wages on
production, income, employment and inflation.
Interest rates are given in the AD-AS model.
The interaction of aggregate supply and aggregate demand determines the level of economic
activity in the Keynesian model.
4.7
(a)
(b)
(c)
(d)
[1]
[2]
[3]
[4]
[5]
a, b and c
only a and b
only a and c
only b and c
only d
4.8
(a)
(b)
(c)
(d)
a decrease in wages.
an increase in investment spending.
a deterioration of weather conditions.
an increase in the price of oil.
[1]
[2]
[3]
[4]
[5]
a, b, c and d
only a and b
only b and d
only c and d
only c
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4.9
Which of the following chain of events correctly represents the monetary transmission mechanism,
assuming fixed prices?
[1]
[2]
[3]
[4]
i I A Y
i I A Y
i I A Y
i I A Y
(c)
[1]
[2]
[3]
[4]
[5]
When it is assumed that prices and wages are not fixed, the multiplier increases in size.
Investment spending can change due to a change in the interest rate, but other factors may also
cause a shift of the investment curve, resulting in a change in investment without a prior change
in the interest rate level.
A decrease in the interest rate will lead to an increase in production and income as well as a
decrease in prices in the AD-AS model.
a, b and c
only a and b
only b and c
only a
only b
Monetary and fiscal policies are collectively known as supply management policies.
The lags associated with monetary and fiscal policy make these policies more effective.
The implementation lag is shorter for monetary policy than for fiscal policy.
In practice, fiscal and monetary policies are conducted independently of one another.
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Question 4.13 refers to figure 19-9 (a) and figure 19-10 on page 375 of Mohr, P and associates. 2015.
Economics for South African students. 5th edition. Pretoria: Van Schaik.
Figure 19-10
(d)
At point YB there is a deficit on the current account and the level of production and income is at
the full employment level.
An increase in exports would shift the exports curve upwards in figure 19-9 (a) and move point
YB closer to point Yf in figure 19-10.
If there is an inflow of foreign capital, South Africa can afford to move to a point to the right of YB
in figure 19-10.
At point Y0 in figure 19-10 there is a current account deficit but no unemployment.
[1]
[2]
[3]
[4]
a, b, c and d
only a and b
only b and c
only c and d
(b)
(c)
Capital and intermediate goods are excluded from the CPI but included in the PPI.
PPI relates to the cost of living.
An inflation rate of 3% implies that the cost of goods and services increases by 3% monthly.
To calculate the implicit GDP deflator, divide the real GDP by the nominal GDP and multiply by
100 to get a percentage.
83
[1]
[2]
[3]
[4]
[5]
Inflation benefits lenders at the expense of borrowers, which means that the young benefit at
the expense of the elderly and government benefits at the expense of the private sector.
Lenin said that inflation is the best way to destroy capitalism because it causes friction in society
and encourages speculative activity at the expense of productive activity.
Expectations about inflation can be inflationary.
How the inflation rate of the domestic economy compares with that of its trading partners does
not affect trade.
a, b, c and d
only a and b
only b and c
only c
only b and d
(d)
The AS curve is vertical at the level of full employment because the total available workforce is
employed.
Both cost-push and demand-pull inflation result in a lower level of total production and income.
At the full employment level of total production and income, a contractionary fiscal policy will
shift the AD curve to the right and cause inflation.
If the profit margin is inflexible, higher wage demands can be inflationary.
[1]
[2]
[3]
[4]
[5]
a, b, c and d
only a and b
only a and d
only a
only b and d
(b)
(c)
84
The unemployment rate is measured by dividing the number of unemployed persons by the
number of people working.
According to the strict definition of unemployment, a person who did not actively seek work in
the four weeks preceding the interview, is not unemployed.
The expanded definition is the official measurement of unemployment used by Statistics SA.
The informal sector is measured in the expanded definition of unemployment.
ECS1601/101
4.20 Which of the following statements is/are correct?
(a)
(b)
(c)
Higher unemployment has social costs, for example it could lead to increased criminal activity.
A person who has been unemployed for too long might lose their skills and become
unemployable.
Social welfare programmes place a financial burden on society.
[1]
[2]
[3]
[4]
a, b and c
only a and b
only a and c
only b
4.21 Frank was laid off from his job because of a recession. He is ... unemployed. Susan works at a surf
shop in Durban, but only for three months a year; for the rest of the year she is ... unemployed.
[1]
[2]
[3]
[4]
[5]
structurally; seasonally
cyclically; frictionally
structurally; frictionally
cyclically; seasonally
cyclically; structurally
South Africas unemployment problem stems from the demand side only.
In general, labour legislation in South Africa protects the employer at the expense of the
employee.
The informal sector comprises of only illegal behaviour.
Demand-deficit unemployment can be overcome by increasing aggregate demand, but it is not
sufficient to overcome South Africas employment problem.
According to Statistics SA the unemployment rate for the first quarter of 2014 was 25,2%. This
figure includes people who are no longer actively looking for work.
South Africa has a serious unemployment problem which has led to social unrest.
A decrease in the foreign demand for South African exports could result in job losses.
[1]
[2]
[3]
[4]
a, b and c
only a and b
only b and c
only c
4.24 According to the Phillips curve, a(n) ... in the inflation rate will be accompanied by a(n) ... in the
unemployment rate.
[1]
[2]
[3]
increase; increase
increase; decrease
decrease; decrease
85
[1]
[2]
[3]
[4]
According to the Phillips curve, a decrease in aggregate demand will lead to an increase in
unemployment and a decrease in inflation.
The Phillips curve indicates that there is an inverse relationship between inflation and
unemployment.
Many economists argue that the long-run Phillips curve is vertical, which means there is no
long-run trade-off between unemployment and inflation.
a, b and c
only a and b
only b and c
only b
Real GDP per capita is calculated by dividing real GDP by the population.
Nominal GDP is measured at current prices.
The costs of pollution are taken into account when calculating GDP.
Despite criticisms against it, GDP is still the best available measure of economic activity.
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ECS1601/101
4.30 Which one of the following statements is correct?
[1]
[2]
[3]
[4]
An increase in any one of the supply factors is sufficient to increase economic growth.
South Africa primarily exports capital goods.
Government spending can be raised indefinitely to increase economic growth.
The export of minerals and metals helped the early South African economy to grow.
As part of our drive to improve our service, the need arose to get a clearer picture of our students use of
additional support resources. To this end, a set of questions (4.31 to 4.45) was developed, which you must
please answer.
4.31 Did you attend the tutor classes offered by Unisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because of work commitments.
No, because of transport costs and/or transport problems to the regional centre.
No, because there are no tutorial classes in my region.
No, because the printed study material is sufficient for me to understand the work.
4.32 Did you make use of private tuition (Damelin, Varsity College, Boston and others)?
[1]
[2]
[3]
[4]
[5]
No.
Yes, and I paid less than R1 000 for the tuition.
Yes, and I paid between R1 000 and R2 500 for the tuition.
Yes, and I paid between R2 500 and R5 000 for the tuition.
Yes, and I paid more than R5 000 for the tuition.
4.33 Did you make use of the DVD to study for the course?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because it is not part of prescribed material.
No, because I have not sufficient access to a DVD machine.
No, because the printed study material was sufficient for me to understand the work.
No, because I did not have the time to use it.
4.34 Which one of the following best describes your use of the DVD?
[1]
[2]
[3]
[4]
[5]
4.35 Did you make use of the CD ROM to study for the course?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because it is not part of prescribed material.
No, because I do not have sufficient access to a computer.
No, because the printed study material was sufficient for me to understand the work.
No, because I did not have the time to use it.
87
4.36 Which one of the following best describes your use of the CD ROM?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I do not have access to the internet.
No, because I was unable to download and view the video clips.
No, because the printed study material was sufficient for me to understand the work.
No, because it is not part of the prescribed material.
Yes.
No, because I do not have access to the internet.
No, because I did not know about it.
No, because it is too unstructured.
No, because it contains too little discussion on module content.
4.39 Did you make use of the learning unit notes under additional resources on myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I did not know about it.
No, because I do not have access to the internet.
No, because I was unable to download it.
No, because I do not think it is important.
4.40 Did you make use of past exam papers which are posted on myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I did not know about it.
No, because I do not have access to the internet.
No, because I was unable to download it.
No, because I do not think it is important.
4.41 Did you read the tutorial letter containing information about the examination?
[1]
[2]
[3]
[4]
[5]
88
Yes.
No, I did not receive it.
No, I did not have time yet.
No, I shall look at it closer to the examination.
No, from past experience I know the content in the tutorial letter is not very useful.
ECS1601/101
4.42 Did you read the weekly communication that was sent to your myLife email address?
[1]
[2]
[3]
[4]
[5]
Yes.
No, I did not activate my myLife email address.
No, I do not have weekly access to the internet.
No, I do not have access to the internet.
No, I did not have time to read it.
4.43 Did you make use of other resources on the world-wide web?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I do not have access to the internet.
No, because of the cost of using the internet.
No, because the printed study material was sufficient for me to understand the work.
No, because I did not have the time to do it.
4.44 If you have made use of the DVD, CD ROM and video clips, which one did you find the most useful in
your studies?
[1]
[2]
[3]
[4]
the DVD
the CD ROM
the video clips
Not applicable, since I did not use all of them.
89
EXAMINATIONS
For general examination guidelines, please refer to the my Studies @ Unisa brochure.
9.1
Examination period
This module is offered in a semester period of approximately 15 weeks. This means that if you are
registered for the first semester, you will write the examination in May/June 2016 and the
supplementary examination will be written in October/November 2016. If you are registered for the
second semester, you will write the examination in October/November 2016 and the supplementary
examination will be written in May/June 2017.
During the semester, the Examination Section will provide you with information regarding the
examination in general, examination venues, examination dates and examination times.
9.2
9.3
Transferring of examination
If you should apply to transfer your examination to the following examination period, you must take
note that the transfer is subject to examination admission in the semester you are registered for. In
other words, you must gain admission to the exam before your exam can be transferred. Your exam,
including your semester mark, is transferred. Thus, in the next exam period you will not get the
opportunity to submit assignments or to improve your semester mark.
Furthermore, if an examination is transferred, it is deemed to be your second and final examination
opportunity for the academic period. Should you not write the deferred examination, or obtain a fail
mark in the deferred examination, you will have no alternative but to re-register for this module.
An examination may only be deferred once per academic period. Students who qualified for a
supplementary examination are not allowed to transfer their examination to the following examination
period.
Contact the Department of Student Assessment Administration if you want to transfer your
examination to the following examination period.
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ECS1601/101
9.4
(ii)
(iii)
Section A consists of definitions and short questions in which you are generally asked to name or list
a number of factors/determinants/categories, distinguish between two concepts or explain an
economic concept (possibly with the aid of a diagram). Section A carries a total of 50 marks.
Section B consists of multiple-choice questions and carries a total of 50 marks.
A final mark (semester mark + examination mark) of 50% is required to pass this module.
9.5
9.6
91