economics 8

QUESTION 1

Various 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 method

B output method C income method D taxation method

1.2 Technological development is essential for future economic growth because it

A accelerates the economic growth rate

B increases the competitiveness of industries

C leads to further inventions, innovations and scientific discoveries

D all the above-mentioned

1.3 An increase in the following would likely lead to a decrease in national income: A consumption expenditure
B plant and equipment investment

C imports

D residential construction

1.4 Which ONE of the following is not a wage system?

A incentive

B piece

C olace

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D Time

1.5 Which of the following would be considered a transfer payment?

A payment for a train journey

B monthly instalments on a car

C social security payments

D payment for a room in a hotel

1.6 GOP is the market value of all final goods and services produced in a …

A given period of time

B given period of time after deduction of indirect business taxes

C given period of time after deduction of depreciation

D given period of time excluding exports

1 .7 The most general scale used to measure inflation is the … index.

A consumer’s

B consumer’s price C production price D selling price

1.8 Stagflation occurs where prices

A drop in an economic recession

B rise in an economic revival

C rise ion an economic recession

D drop in an economic revival

1.9 Macro-economics …

A studies the functioning of the economy in its entirety

B offers explanations for variations in economic processes over time

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C measures economic processes over time

0 involves all of these

1.10 The national income is a measure of ::

A income earned in producing the GOP

B earned and unearned incomes received in a given period of time

C income earned in producing the GOP less transfer payments

0 income earned in producing the GOP minus indirect business taxes

1.11 Consumers will tend to buy more of the product when: A its price is reduced
B their income rise

C the prices of competing products rise

0 all the above-mentioned

1.12 The following factors influence the supply of labour: (i) labour force
(ii) pension age

(iii) risk factor involved in various occupations

(iv) MIP of labour

A (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 growth

B unemployment insurance

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C inward industrialization

D legal tender

1.14 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-mentioned

1 .15 Which of the following is NOT a production factor?

A profits

B labour

C machinery

D knowledge

1.16 The position of those workers who find themselves temporarily between jobs,is referred to as. … Unemployment

A frictional

B Structural C seasonal D cyclical

1.17 The most important restriction(s) on trade unions is/are….

A prohibition on party political activities

B prohibition on strikes

C that certain occupations are excluded

D all the above-mentioned

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1.18 The components of money are :

(i) notes and coins (ii) saving deposits (iii) call money
(iv) deposits at call at acceptance banks

A (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 tax

8 excise taxes

C property taxes

D employment taxes

1.20 Which instrument is used to determine economic growth?

A CPIX

8 LFS

C GOP

D PPI (20 X1 =20) (20)

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QUESTION 2

Use the information in the table below and answer the questions that follow:

Wages Workers demanded Workers supplied
R 100 200 100
R200 150 150
R300 100 200
R400 50 250

(a) Draw the demand and supply curve of labour. (12)

QUESTION3

3.1 Use the following information and do the necessary calculations:

[email protected] market prices

Net factor payments to foreign countries

Indirect taxes

Provision for depreciation

Subsidies

R296 667

R 8 182

R 35 120

R 47 007

R 5 830

3.1 .1 GNP @ market price

3.1.2 [email protected] market price

3.1.3 NNI

(1) (1) (1)

3.2 Answer QUESTON 3.2.1 and QUESTION 3.2.2 with reference to the following information:

Consumer spending 80 000

Investment spending 120 000

Government spending 35 000

Net foreign spending ( X-M) -25 000

Provision for depreciation 8 000

Net factor payments to foreign countries 12 000

Indirect taxes 13 000

Subsidies 8 000

3.2.1 The GDE at market price

3.2.2 GOP at factor cost

(1) (1)
(5)

QUESTION 4

Name the FIVE macro economic objectives as well as the instruments used to measure it. (10)

QUESTION 5

5.1 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)

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QUESTION 6
Choose the concepts in COLUMN A to match the description from COLUMN B.Write

only the letter (a-j) next to the question number in the answer book, for example 6.1 (a)

COLUMN A

6.1 postponed payments

6.2 transactional motive

6.3 demand for money

6.4 precautionary motive

6.5 speculative motive

6.6 supply of money

6.7 component of money

6.8 SARB

6.9 deflation

6.10 expansionary policy

QUESTION 7

7.1 Complete the following:

COLUMN B A) call deposits
B) influenced by government transactions
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C) credit

D) banker of the state

E) to cool down economy

F) need to hold money

G) influenced by income and price level

H) savings deposit

I) related to the store function of money

J) policy to stimulate the economy

{10x 1 = 10)

(10)

7.1.1 Visible exports -?.. … = trade balance

7.1.2 Visible balance+ invisible balance =?. ……

{2 x1 = 2)

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7.2 The following figures are those of a countries balance of payments:

Net gold exports R 185 000

Goods exports R 315 000

Visible imports R 170 000

Services receipts R 30 000

Net transfers R 20 000

Capital transfer account -R 120 000

Balance on financial account R 80 000

Unrecorded transactions R 5 000

Use the given information to determine the following

7.2.1 Balance of trade

7. 2.2 Balance on current account

7.2.3 Change in net gold and foreign reserves

QUESTION 8

8.1 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)