ECONOMICS

QUESTION 1Various possible answers are provided for each question. Choose the correct answer and only write down the letter next to the question Ex 1 A.1.1 Which ONE of the following is not a method of calculating national income?A expenditure methodB output method C income method D taxation method1.2 Technological development is essential for future economic growth because itA accelerates the economic growth rateB increases the competitiveness of industriesC leads to further inventions, innovations and scientific discoveriesD all the above-mentioned1.3 An increase in the following would likely lead to a decrease in national income: A consumption expenditureB plant and equipment investmentC importsD residential construction1.4 Which ONE of the following is not a wage system?A incentiveB pieceC olace34D Time1.5 Which of the following would be considered a transfer payment?A payment for a train journeyB monthly instalments on a carC social security paymentsD payment for a room in a hotel1.6 GOP is the market value of all final goods and services produced in a …A given period of timeB given period of time after deduction of indirect business taxesC given period of time after deduction of depreciationD given period of time excluding exports1 .7 The most general scale used to measure inflation is the … index.A consumer’sB consumer’s price C production price D selling price1.8 Stagflation occurs where pricesA drop in an economic recessionB rise in an economic revivalC rise ion an economic recessionD drop in an economic revival1.9 Macro-economics …A studies the functioning of the economy in its entiretyB offers explanations for variations in economic processes over time35C measures economic processes over time0 involves all of these1.10 The national income is a measure of ::A income earned in producing the GOPB earned and unearned incomes received in a given period of timeC income earned in producing the GOP less transfer payments0 income earned in producing the GOP minus indirect business taxes1.11 Consumers will tend to buy more of the product when: A its price is reducedB their income riseC the prices of competing products rise0 all the above-mentioned1.12 The following factors influence the supply of labour: (i) labour force(ii) pension age(iii) risk factor involved in various occupations(iv) MIP of labourA (i), (ii) and (iv) B (i) and (ii)C (i) , (ii) and (iii)0 (iii and (iv)1.13 Which of the following is not a method to combat unemployment?A economic growthB unemployment insurance36C inward industrializationD legal tender1.14 An increase in supply means that …A there has been an increase in demand B the supply curve has shifted to the right C there has been a decrease in demand D none of the above-mentioned1 .15 Which of the following is NOT a production factor?A profitsB labourC machineryD knowledge1.16 The position of those workers who find themselves temporarily between jobs,is referred to as. … UnemploymentA frictionalB Structural C seasonal D cyclical1.17 The most important restriction(s) on trade unions is/are….A prohibition on party political activitiesB prohibition on strikesC that certain occupations are excludedD all the above-mentioned371.18 The components of money are :(i) notes and coins (ii) saving deposits (iii) call money(iv) deposits at call at acceptance banksA (i) ,(ii),(iii)8 (i) , (ii) C (iii),(iv) D ((i), (iii)1.19 Which of the following categories of taxes provide the largest percentage of tax revenues?A individual income tax8 excise taxesC property taxesD employment taxes1.20 Which instrument is used to determine economic growth?A CPIX8 LFSC GOPD PPI (20 X1 =20) (20)38QUESTION 2Use the information in the table below and answer the questions that follow:Wages Workers demanded Workers suppliedR 100 200 100R200 150 150R300 100 200R400 50 250(a) Draw the demand and supply curve of labour. (12)QUESTION33.1 Use the following information and do the necessary calculations:GOP@ market pricesNet factor payments to foreign countriesIndirect taxesProvision for depreciationSubsidiesR296 667R 8 182R 35 120R 47 007R 5 8303.1 .1 GNP @ market price3.1.2 NNP@ market price3.1.3 NNI(1) (1) (1)3.2 Answer QUESTON 3.2.1 and QUESTION 3.2.2 with reference to the following information:Consumer spending 80 000Investment spending 120 000Government spending 35 000Net foreign spending ( X-M) -25 000Provision for depreciation 8 000Net factor payments to foreign countries 12 000Indirect taxes 13 000Subsidies 8 0003.2.1 The GDE at market price3.2.2 GOP at factor cost(1) (1)(5)QUESTION 4Name the FIVE macro economic objectives as well as the instruments used to measure it. (10)QUESTION 55.1 Discuss the FOUR types of unemployment. (5X4= 20)5.2 Complete the following:The demand for labour is always a ( a) … demand. The demand for labour is determined by the (b) … of the final product and the (c) … of labour.(3) (23)••QUESTION 6Choose the concepts in COLUMN A to match the description from COLUMN B.Writeonly the letter (a-j) next to the question number in the answer book, for example 6.1 (a)COLUMN A6.1 postponed payments6.2 transactional motive6.3 demand for money6.4 precautionary motive6.5 speculative motive6.6 supply of money6.7 component of money6.8 SARB6.9 deflation6.10 expansionary policyQUESTION 77.1 Complete the following:COLUMN B A) call depositsB) influenced by government transactions•C) creditD) banker of the stateE) to cool down economyF) need to hold moneyG) influenced by income and price levelH) savings depositI) related to the store function of moneyJ) policy to stimulate the economy{10x 1 = 10)(10)7.1.1 Visible exports -?.. … = trade balance7.1.2 Visible balance+ invisible balance =?. ……{2 x1 = 2)41 ••7.2 The following figures are those of a countries balance of payments:Net gold exports R 185 000Goods exports R 315 000Visible imports R 170 000Services receipts R 30 000Net transfers R 20 000Capital transfer account -R 120 000Balance on financial account R 80 000Unrecorded transactions R 5 000Use the given information to determine the following7.2.1 Balance of trade7. 2.2 Balance on current account7.2.3 Change in net gold and foreign reservesQUESTION 88.1 Who is the Minister of Finance?8.2 Differentiate between the fiscal and monetary policy(1) (1)(3 X 1 =3) (5)(1) (2)8.3 Differentiate between economic growth and economic development in table form (8)8.4 Differentiate between comparative and absolute advantage (4) (15)