ECS1601 Tutorial Letter Breakdown

ECS1601/101/3/2016
Tutorial Letter 101/3/2016

Economics 1B
ECS1601
Semesters 1 and 2
Department of Economics
This tutorial letter contains important information about ECS1601.

Please read it first.
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
2
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
INTRODUCTION AND WELCOME

Welcome to Economics 1B! We hope that you will find this module interesting, mentally stimulating
and rewarding. We shall do our best to make your study of this module successful. You will be well on
your way to success if you start studying early in the semester and keep on working throughout the
semester.
We hope that you will enjoy this module and wish you all the best!
1.1
Tutorial material
The Department of Despatch should supply you with the following tutorial matter for this module:
Tutorial Letter 101

MO 001/3/2016 (this document contains the learning units where the study instructions are
provided)
Tutorial Letters 201 to 204
a CD-ROM (Economics Knowledge Granules)
a DVD(recording of the entire syllabus for ECS1601)
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.
PURPOSE OF AND OUTCOMES FOR THE MODULE
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
explain the functioning of the economy as a whole
ECS1601/101
assess the performance of the economy
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.
For any queries relating to myUnisa, contact myunisahelp@unisa.ac.za.
For any queries relating to myLife email accounts, contact mylifehelp@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
STUDENT SUPPORT SERVICES

For information on the various student support systems and services available at Unisa (eg student
counselling, tutorial support programme and classes, language support), please consult the
publication my Studies @ Unisa.
5.1
Contact with fellow students

You can get the names of other students in your area by contacting the Department of Student
Admission and Registration. For further information, please consult the my Studies @ Unisa
brochure.
5.2
myUnisa and your e-tutor

If you have access to the internet, myUnisa provides you with quick access to resources and
information at the University. The myUnisa learning management system is Unisa's online campus
that will help you to communicate with your lecturers, with other students and with the administrative
departments of Unisa.
Every week as you progress through the study programme the following will be delivered on the
ECS1601-16-S1 webpage (in the first semester) or to the ECS1601-16-S2 webpage (in the second
semester).
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
Tutorial support programme

The University offers face-to-face tutor services (ie classes in a venue) as additional academic
support at specific learning centres. Subject-related tutoring is available to develop and enhance the
learning experience and academic performance of students. For further information consult the
brochure my Studies @ Unisa.
STUDY PLAN
6.1
Studying Economics 1B
To study this module, you will need the following material:
The MO 001/3/2016 which contains the learning units

Tutorial Letter 101
Your prescribed textbook
The DVD (and CD-ROM)
Other tutorial letters that you will receive during the semester
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:
Start each learning unit by reading the Outcomes.

Proceed to the first section under the Contents heading (eg 1.1 Production, income and
spending) and clearly mark the indicated prescribed section(s) in your textbook.
Read the introductory remarks and explanations in the learning unit on the prescribed section. It
tells you how to address the prescribed section.
Now study the prescribed section in the textbook.
Do the activities at the end of the section. Compare your answers to those provided at the end
of the learning unit. Repeat the activities if necessary until you understand the work.
Once you have studied a section, return to the learning unit and repeat the process by
progressing to the next prescribed section.
Complete the check list. Repeat the activities where necessary or contact us if you need help.
Repeat the procedure for the other learning units.
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
Proposed study programme

To help you to work on this module regularly and systematically, a proposed study programme is
provided. The proposed study programme is based on the assumption that first-semester students
commence their studies during the last week of January and second-semester students during the
third week of July. In each semester the period from the last day of registration to the start of the
examination consists of only 15 weeks. Hence, it is critical that you start working as soon as possible
and continue to work regularly and systematically throughout the semester. Try to adhere to the study
programme as far as possible.
10
ECS1601/101
First semester
WEEK
WEEK COMMENCING
ACTIVITY
26 January
Work through learning unit 1 of the study guide.
1 February
8 February
15 February
22 February
22 February
Closing date for Assignment 01.
29 February
Work through sections 6.1 to 6.5 of learning unit 6 of the study

guide.
7 March
Work through sections 6.6 to 6.8 of learning unit 6 of the study

guide.
14 March
14 March
21 March
10
28 March
29 March
11
4 April
Work through learning units 10 and 11 of the study guide.
12
11 April
Revise learning units 1 to 4 of the study guide.
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
Work through learning units 10 and 11 of the study guide.
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
Assessment of the examination

In general, assessment will be done by the module leader, the module team and/or contracted
external markers. The names of examiners will also be indicated on the examination question paper.
For general information and requirements as far as examinations are concerned, see the brochure my
Studies @ Unisa.
Please note that the applications for, and the administration of, remarks of examination scripts are
handled solely by the Examinations department and not academic departments.
7.4
How does this work in practice?
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%
The examination mark

The percentage achieved in the examination is used in the calculation of your final mark.
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
=
=
=
=
(42 x 20%) + (60 x 80%)

(42 x 0,2) + (60 x 0,8)
8,4 + 48
56,4%
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.
14
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
Extension for submitting assignments
NO EXTENSIONS FOR SUBMISSION OF ASSIGNMENTS WILL BE CONSIDERED.
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
Unique assignment numbers

In addition to the general assignment number (eg 01 or 02), each assignment has its own unique
assignment number (eg 102717). Please ensure that you use the correct unique number for the
assignment you want to submit.
8.6
Due dates of assignments
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
Learning units 1 and 2
02
817644
14 March
Learning units 3 to 5
03
661805
29 March
04
680219
18 April
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.
16
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
03
646207
5 September
04
554137
26 September
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
First semester assignments
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
Answer this assignment on the prescribed answer sheet or submit it on myUnisa.

1.1
Which one of the following statements is incorrect?

[1]
[2]
[3]
[4]
[5]
1.2
1.3
Use the following two statements to answer the question:

a.
b.
Investment is a stock variable.

The weekly consumption of beer is a flow variable.
[1]
[2]
[3]
[4]
both a and b are incorrect

a is incorrect and b is correct
both a and b are correct
only a is correct
In the simple circular flow of economic activity, goods and services flow via
[1]
[2]
[3]
[4]
[5]
1.4
factor markets to goods markets.

factor markets from households to firms.
goods markets from households to firms.
factor markets from firms to households.
goods markets from firms to households.
Which of the following statements is incorrect?

[1]
[2]
[3]
[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
What are the payments for the factors of production?

[1]
[2]
[3]
[4]
1.6
Aggregate spending on South African production comprises

[1]
[2]
[3]
[4]
[5]
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
private consumption, government spending, private investment and total savings.

private consumption, government spending, private investment and net exports.
private consumption, government transfers, private investment and net exports.
private consumption, government investment, private savings and net exports.
private consumption, government spending, private investment and spending by foreigners on
South African goods.
Use the following two statements to answer the question:

a.
b.
The factors of production are capital, rent, money and labour.

Net exports are equal to exports plus imports.
[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
exports are leakages from the circular flow.

investment is a leakage from the circular flow.
savings are injections into the circular flow.
imports are injections into the circular flow.
taxes are leakages from the circular flow.
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
1.11 The factor market is where

[1]
[2]
[3]
[4]
households provide resources to firms.

goods and services flow to households.
firms provide resources to households.
households provide goods to business.
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.
1.13 Which of the following statements is incorrect regarding specialisation?

[1]
[2]
[3]
[4]
There is an increase in total production of goods and services.

If specialisation is combined with trade, consumers have access to a wider variety of quality
goods and services.
There is an increase in the price of goods and services.
Specialisation happens when a firm produces goods and services it is best at producing, and
exchanges them with those of other firms.
1.14 Which one of the following is the essential function of money?

[1]
[2]
[3]
[4]
[5]
medium of exchange
store of value
factor of production
unit of account
source of income
1.15 Money as a medium of exchange consists of

[1]
[2]
[3]
[4]
coins and notes.

a positive balance on a debit card account.
a positive balance on a cheque account.
all of the above.
1.16 Which of the following is included in the M1 quantity of money?

[1]
[2]
[3]
[4]
[5]
20
gold
stocks
demand deposits
credit cards
all of the above
ECS1601/101
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
Other shortterm and

medium-term
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
Source: South African Reserve Bank Quarterly Bulletin 2015

[1]
[2]
[3]
[4]
[5]
R636 337 million

R833 908 million
R1 132 039 million
R2 049 694 million
R2 512 251 million
1.18 What institution facilitates indirect lending?

[1]
[2]
[3]
[4]
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]
acting as banker and advisor to the government

maintaining financial stability
setting the income tax rate
setting the repo rate
all of the above
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
1.22 Which one of the following statements is incorrect?

[1]
[2]
[3]
[4]
[5]
As interest rates increase, bond prices decrease.

As interest rates decrease, bond prices increase.
There is a positive relationship between interest rate and bond prices.
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.
Use the figure below to answer question 1.23.
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
1.24 The repo rate is

[1]
[2]
[3]
[4]
[5]
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 interest rate level

the income level
the price level
money supply
both options [2] and [4] are correct
1.26 Which of the following statements is incorrect?

[1]
[2]
[3]
[4]
The quantity of money is determined by the interaction of the demand for money and interest
rate.
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)
selling of government stock to increase the liquidity deficit of the banks.

buying of government stock to increase the liquidity deficit of the banks
selling of government stock to contribute to lower interest rates.
buying of government stock to contribute to lower interest rates.
[1]
[2]
[3]
[4]
only (a) and (c) are correct

only (a) and (d) are correct
only (b) and (c) are correct
only (b) and d) are correct
Use the paragraph below to answer questions 1.29 and 1.30.

One of the objectives of the South African Reserve Bank is inflation targeting, and the inflation target for
South Africa is between 3 and 6 per cent. There happens to be an excess demand for goods and services,
which has led to an increase in the general price level, that is, inflation.
1.29 If the inflation rate were above the target, it would be appropriate for the South African Reserve Bank
to
[1]
[2]
[3]
[4]
buy government bonds.

lower the interest rate level.
increase the quantity of money.
do none of the above.
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]
increase income tax rates.

increase the repo rate.
buy Treasury bills in the open market.
buy government bonds.
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]
I have unlimited access to the internet.

Less than 500 MB.
Between 500MB and 1GB.
Between 1GB and 2GB.
More than 2GB.
1.34 The sections of the learning units that I had to study to complete this assignment
[1]
[2]
[3]
[4]
[5]
helped me to work through the textbook systematically.

did not help me to understand the study material in the textbook better.
was totally irrelevant to the assignment questions.
I did not use the learning units at all although I have access to it.
I have not received a study guide.
1.35 Indicate the value being added by the DVD during your completion of this assignment.
[1]
[2]
[3]
[4]
[5]
24
It was very helpful.

It was fairly helpful.
It did not add any value.
I did not use it.
I did not use it as it is not part of the prescribed material.
ECS1601/101
1.36 Indicate the value being added by the CD-ROM during your completion of this assignment.
[1]
[2]
[3]
[4]
[5]

I did not use it.
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.
1.38 Concerning the module website on myUnisa.

[1]
[2]
[3]
[4]
[5]
I am not aware of the website.

I am aware of the website but have not visited it.
I visited the website once but did not find it helpful.
I visit the website regularly and find it helpful.
I visit the website only when I receive an announcement that there is something new.
1.39 Which one of the following best describes your use of the e-tutor site on myUnisa?
[1]
[2]
[3]
[4]
[5]
I did not visit it at all.

I only visited it once or twice.
I visited it occasionally.
I visited it regularly.
I visited it extensively.
1.40 Concerning the discussion forum on the e-tutor webpage on myUnisa:

[1]
[2]
[3]
[4]
[5]
I am not aware of the discussion forum.

I am aware of the discussion forum, but do not use it.
I visited the discussion forum at least once, but did not find it interesting.
I visit the discussion forum regularly and take part.
I would like to take part in the discussion forum, but do not know how to.
1.41 Which one of the following best describes your experience with the services of the e-tutor?
[1]
[2]
[3]
[4]
[5]
I find it extremely helpful.

I find it fairly helpful.
I find it helpful.
I did not find it very helpful.
I did not find it helpful at all.
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]
I am not aware of the Powerpoint slides.

I am aware of the slides but have not used it.
I am aware of the slides and have used it sometimes.
I am aware of the slides and use it regularly.
[1]
[2]
[3]
[4]
[5]

I find it helpful.
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]
I am not aware of the quizzes.

I am aware of the quizzes but have not used it.
I am aware of the quizzes and have used it sometimes.
I am aware of the quizzes and use it regularly.
on myUnisa best?
[1]
[2]
[3]
[4]
[5]

I find it helpful.
1.46 Do you attend the tutor classes offered at the learning centres?
[1]
[2]
[3]
[4]
[5]
26
Yes, the tutorials help me understand the work better.

Yes, but the tutorial did not help me.
No, I prefer to work by myself.
No, there is no tuition available for this module at the learning centre closest to me.
No, for any other reason.
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
of
the
Please answer this assignment on the prescribed answer sheet or by submitting it on myUnisa.
2.1
To whom does the government provide public goods and services?

[1]
[2]
[3]
[4]
2.2
The role of government is threefold. What are the three broad functions of government?
[1]
[2]
[3]
[4]
2.3
participating in the market

changing the repo rate in order to change the interest rate
regulation by means of policies, laws or rules that affect the economy
changing the tax rate and/or structure
Which of the following does not explain rent seeking satisfactorily?

[1]
[2]
[3]
[4]
2.5
allocative, dispersal and stabilisation functions

allocative, dispersal and equitable distribution functions
allocative, equitable distribution and stabilisation functions
equitable distribution, dispersal and stabilisation functions
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.
Which one of the following statements is correct?

[1]
[2]
[3]
[4]
Eskom is an example of a nationalised entity.

Nationalisation will attract foreign direct investment, which will increase foreign reserves.
The transfer of ownership from a private enterprise to the government is called nationalisation.
Nationalising an organisation would increase its efficiency.
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
an increase in the tax rate

a decrease in government spending
a decrease in the interest rate
an increase in the budget deficit
Which of the following correctly states the means by which government spending is financed?
[1]
[2]
[3]
[4]
taxes, borrowing and income from government owned property

taxes, gold reserves and income from private owned property
borrowing, gold reserves and government owned property
taxes, borrowing and gold reserves
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
monetary policy aimed to redistribute income.

monetary policy aimed to encourage economic growth.
fiscal policy aimed to redistribute income.
fiscal policy aimed to encourage economic growth.
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
2.10 Value Added Tax (VAT) is an example of which type of taxes?

[1]
[2]
[3]
[4]
general tax, indirect tax and progressive tax

selective tax, direct tax and progressive tax
selective tax, indirect tax and regressive tax
general tax, indirect tax and regressive tax
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
2.12 Which country has an absolute advantage in producing apples?

[1]
[2]
[3]
[4]
neither country 1 nor country 2

both country 1 and country 2
country 1
country 2
2.13 Which country has a comparative advantage in producing beef?

[1]
[2]
[3]
[4]
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]
the current account

the financial account
unrecorded transactions
a change in gold and foreign reserves
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]
a shift of the supply of the USD curve to the left

a shift of the supply of the USD curve to the right
a shift of the demand for the USD to the left
a shift of the demand for the USD to the right
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]
China starts producing cheaper goods than the United States.

The gold price increases.
More South African tourists visit the United States.
After a crime wave, American tourists cancel their plans to visit South Africa.
2.19 What could the central bank do to lessen the effect of the depreciating rand?
[1]
[2]
[3]
[4]
supply more USD to the market

supply less USD to the market
supply more ZAR to the market
decrease the domestic interest rate
2.20 Which of the following is not a macroeconomic objective?

[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
Toby bought an old bicycle from his friend.

Bernie imported his dream car from Germany.
Tim bought paint to make artwork that he sells.
Amy sold shoes she made to an American tourist
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]
nominal GDP of 2015 = 5 103

real GDP of 2014 = 4 246
real GDP of 2015 = 4 074
nominal GDP of 2014 = 3 940
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
2.24 If GDP is less than GDE (gross domestic expenditure), then

[1]
[2]
[3]
[4]
the country has a surplus on the current account.

exports are less than imports.
the country is consuming less than it is producing.
the country is a net exporter.
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]
The salary of Becca, a Ghanaian teacher, who works in Lagos, Nigeria.

The salary of Johann, a South African engineer, who works in Accra, Ghana.
An American tourist that pays to stay in the Golden Tulip Hotel in Accra, Ghana.
The income of Ching, a Chinese shop keeper in Ghana.
2.26 Which of the following people form part of the labour force?
[1]
[2]
[3]
[4]
A child of 15 years that is willing to work.

A housewife that is not looking for any formal employment.
A terminally ill patient at Pretoria Hospital that is unable to work.
A thirty year old, fit South African citizen looking for work.
2.27 The consumer price index (CPI) is used to calculate

[1]
[2]
[3]
[4]
the real exchange rate.

the interest rate.
the inflation rate.
the gross domestic product.
31
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
Brazil with a Gini coefficient of 0,52

India with a Gini index of 33,3
South Africa with a Gini coefficient of 0,65
China with a Gini index of 37,0
ECS1601/101
8.7.3 Assignment 03
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
661805
29 March 2016
prescribed book
30 questions
3.1
Which of the following statements is NOT correct?

[1]
[2]
[3]
[4]
[5]
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
There is no foreign sector.

Prices are given.
Exchange rates are determined by the income level.
Wages are given.
There are no taxes.
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
Spending may be equal to production and income.

Says law states that supply creates its own demand.
Spending may be greater than production and income.
Keynes stated that aggregate supply determines total production.
Spending may be less than production and income.
its disposable income.

its total wealth.
the number of persons in the household.
its net wealth.
the ratio of wage to non-wage income the household earns.
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]
marginal propensity to consume is -0,67.

marginal propensity to consume is 0,88.
marginal propensity to consume is 0,20.
marginal propensity to save is zero.
marginal propensity to save is 0,12.
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%
Consider the following graph to answer questions 3.6 and 3.7.
3.6
The point labelled A2 represents

[1]
[2]
[3]
[4]
[5]
3.7
The gap labelled W represents

[1]
[2]
[3]
[4]
[5]
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

In a simple Keynesian model without a government and a foreign sector:
[1]
[2]
[3]
[4]
[5]
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.
propensity to consume is 0,6, then the equilibrium level of income is R75 billion.
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.
3.10 The 45-degree line illustrates

[1]
[2]
[3]
[4]
[5]
the level of autonomous consumption.

the level of induced consumption.
the level of investment spending.
the combined level of consumption and investment spending.
all the possible equilibrium points, where the level of aggregate spending equals the level of
total income in the economy.
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
3.11 The value of autonomous spending is

[1]
[2]
[3]
[4]
[5]
15,00 million.
35,00 million.
63,64 million.
80,00 million.
115,00 million.
3.12 The marginal propensity to save is

[1]
[2]
[3]
[4]
[5]
0,75.
3,75.
0,60.
0,40.
0,25.
3.13 The value of the multiplier is

[1]
[2]
[3]
[4]
[5]
1,25.
1,333.
1,538.
1,818.
2,5.
3.14 What will the equilibrium level of income be?

[1]
[2]
[3]
[4]
[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
3.16 Which statement is correct?

[1]
[2]
[3]
[4]
[5]
36
An increase in government spending increases the size of the multiplier.

A decrease in government spending decreases the size of the multiplier.
An increase in government spending decreases the size of the multiplier.
A decrease in government spending increases the size of the multiplier.
An increase in government spending leaves the multiplier unchanged.
ECS1601/101
3.17 In the Keynesian model, government expenditure
[1]
[2]
[3]
[4]
[5]
is undertaken solely to regulate the level of spending.

increases with investment because investment increases the size of the tax base.
is taken to be autonomous because it is subject to government policy.
can be ignored because investment is taken to be the key determinant of income.
is determined by the level of tax revenue.
3.18 In the Keynesian model, tax revenue

[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.
3.19 Which statement is incorrect?

The introduction of taxation in the simple Keynesian model, in the form of a proportional tax,
[1]
[2]
[3]
[4]
[5]
leaves autonomous spending unchanged.

decreases the multiplier.
decreases the equilibrium level of income.
increases the slope of the aggregate spending function.
creates scope for fiscal policy.
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]
R100 billion; 960 billion.

R100 billion; R1 600 billion.
R1 060 billion; R1 600 billion.
R1 540 billion; R2 400 billion
R3 940 billion; R4 800 billion.
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
3.22 Which statement is NOT correct?

[1]
[2]
[3]
[4]
[5]
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.
3.23 In the Keynesian model, exports

[1]
[2]
[3]
[4]
[5]
remain unaffected by changes in output.

increase when income increases.
decrease when income decreases.
depend on the interest rate.
depend on government policy.
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]
the level of autonomous spending

the equilibrium level of income
disposable income
the multiplier
consumption spending by households
3.25 Which one of the following statements is not correct? In the Keynesian model, imports
[1]
[2]
[3]
[4]
[5]
increase and decrease with the level of income.

increase when government spending increases.
increase when taxes decrease.
increase when investment increases.
are always taken as independent of the level of income.
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]
the equilibrium level of income if the economy is closed.

the full employment level of income.
the equilibrium level of income if exports equal imports.
a level of income less than aggregate expenditure.
the level of income where exports equal imports.
3.27 The diagram depicts a situation where _____ at equilibrium (Y1).

[1]
[2]
[3]
[4]
[5]
domestic demand exceeds output

exports exceed imports
domestic demand is less than output
aggregate expenditure is less than output
aggregate expenditure exceeds output
Use the data below and answer questions 3.28 to 3.30.
= 5
= 10
= 15
= 12
= 17
6
=
7
=
3
10
=0
3.28 Which one of the following statements is true?

[1]
[2]
[3]
[4]
[5]
When income is zero, private consumption spending is zero.

When income is zero, private investment spending is zero.
When income is zero, total spending is R49 million.
When income is zero, total spending is R25 million.
The slope of the aggregate expenditure curve is 6/7.
3.29 The value of the multiplier is

[1]
[2]
[3]
[4]
[5]
10.
3,3.
2,5.
0,3.
not possible to calculate from the available information.
39
3.30 The value of equilibrium income is

[1]
[2]
[3]
[4]
[5]
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
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
Suppose that Y = C + I + G + X Z. Which of the following can be illustrated by a rightward shift of

the AD curve?
(a)
(b)
(c)
Increased technological innovation and political stability

A boom in major economies such as China, which are South Africas major trading partners
Depreciation of the local currency against the worlds major currencies due to speculation
[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
An increase in the marginal propensity to save

A decrease in the all-share index
An increase in expected inflation
An increase in the repo rate
An increase in personal tax
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

Only a, b and c are correct.
Only a, c and d are correct.
Only b is correct.
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]
Prices are always fixed in both models.

The money stock and interest rates are variables in the AD-AS model.
Only interest rates are flexible in the Keynesian model.
Both models are demand driven; supply adjusts passively.
Wages only vary in the Keynesian model.
Question 4.6 is based on the diagram below:
4.6
42
Which of the following can be illustrated by the shift of the AD curve in the diagram?
(a)
(b)
(c)
Expansionary monetary policy

Contractionary fiscal policy
Demand management policy where taxes increased
[1]
[2]
[3]
[4]
[5]
Only a is correct.
Only b is correct.
Only c is 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.
43
Questions 4.8 and 4.9 are based on the diagrams below:
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.
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
result in a change in only the price level in the economy.

result in a change in the level of output that is larger than the change would be in the Keynesian
model, since prices and wages are flexible.
change the price level and the income level in opposite directions.
change the price level and the income level in the same direction.
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]
All the options are correct.

Only a, b, c and d are correct.
Only b, c and e are correct.
Only a and d are correct.
Only a, d and e are correct.
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]
Expansionary fiscal policy

Expansionary monetary policy
Contractionary fiscal policy
Contractionary monetary policy
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]
neutral policy; unemployment; a current account surplus

policy dilemma; unemployment; a current account surplus
policy dilemma; unemployment; a current account deficit
policy dilemma; full employment; a current account deficit
policy dilemma; full employment; no balance on the current account
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]
Inflation can be defined as a continuous and considerable rise in general prices.

Inflation can be defined as a once-off rise in general prices.
Inflation can be defined as a continuous and small rise in general prices.
Inflation can be defined as a once-off increase in the price of an important commodity, such as
oil.
Use the information in the table below to answer question 4.15:

Consumer price index
December 2012=100
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)
GDP at current prices
2 799 874
2 988 411
GDP at constant prices
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
Question 4.19 is based on the following diagram:
47
4.19 This is an example of inflation, which will production, income and employment. This phenomenon
is called .
[1]
[2]
[3]
[4]
[5]
cost-push; increase; hyperinflation

cost-push; decrease; stagflation
demand-pull; increase; hyperinflation
demand-pull; decrease; stagflation
cost-push; not affect; hyperinflation
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
4.22 Which of the following can result in a reduction of unemployment?

[1]
[2]
[3]
[4]
[5]
48
Reduction in labour intensity of production

Increased immigration
Increased population growth
Increase in demand for exports
Decrease in government spending
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:
Has unemployment in South Africa increased by 60% in the past 19 years?

The official unemployment rate in 1994, as recorded by Statistics South Africa, was approximately 20%.
The most recent 2013 quarterly labour force survey reported an unemployment rate of 24.7%.
It has been argued that Statistics South Africa uses a very narrow definition of unemployment, which includes
only people who are unemployed but actively seeking work. Statistics South Africa says it uses an internationally
accepted definition of unemployment the same definition used by the United Nations International Labour
Organisation (ILO).
In addition, Statistics SA calculates an expanded rate of unemployment, which includes people who do not
have a job and are available to work but have not taken active steps to look for work.
Calculations using the expanded rate put unemployment at 31.5% in 1994 and 35.6% between July and
September 2013.
A recent study conducted by researchers at the University of KwaZulu-Natal suggests that the broader definition
provides a better reflection of the relationship between labour supply and labour demand in the South African
labour market than the strict, or official, rate of unemployment.
But Martin Wittenberg, a professor of economics at the University of Cape Town, argues that both the narrow
and broader definitions have their uses. The broad definition is more useful if one is thinking about the scale of
the social problem, while the narrow definition is more appropriate if you want to do international comparisons.
Source:
post/
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.
4.24 The Phillips curve indicates that .

[1]
[2]
[3]
[4]
lower unemployment can be traded off for higher inflation

lower unemployment can be traded off for lower inflation
higher unemployment can be traded off for higher inflation
unemployment and inflation are not affected by the same variables
49
Questions 4.25 and 4.26 are based on the following diagram:
4.25 Which of the following factors will result in a rightward shift of the Phillips curve as illustrated?
[1]
[2]
[3]
[4]
[5]
Increases in wages and salaries

Decrease in profit margins
Reduction in the costs of imported capital and intermediate goods
Increased productivity
Reduction in natural disasters
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:
4.27 A complete business cycle by definition will include .

[1]
[2]
[3]
[4]
[5]
A-trough, AB-upswing, B-peak, BC-downswing

only A-trough and AB-upswing
only B-peak and BC-recession
only A-trough and B-peak
no troughs
4.28 Which of the following statements is correct?

[1]
[2]
[3]
[4]
The production factor, capital, refers to the availability of savings in a country.

An increase in the capital supply can result from capital widening or capital deepening.
Capital widening refers to the situation when the amount of capital per labourer is increased.
Capital deepening refers to the situation when the capital stock is increased to accommodate an
increasing labour force.
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 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 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]
I did not use the DVD.

I first studied the chapter in the textbook and then watched the DVD.
I first watched the DVD and then studied the chapter in the textbook.
I used the DVD only when I had a problem with a chapter in the textbook.
I watched it occasionally.
4.35 Did you make use of the CD ROM to study for the course?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I do not have sufficient access to a computer.
4.36 Which one of the following best describes your use of the CD ROM?
[1]
[2]
[3]
[4]
[5]
52
I did not use the CD ROM.

I first studied the chapter in the textbook and then used the CD ROM.
I first used the CD ROM and then studied the chapter in the textbook.
I used the CD ROM only when I had a problem with a chapter in the textbook.
I used the CD ROM occasionally.
ECS1601/101
4.37 Did you make use of video clips on myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I was unable to download and view the video clips.
No, because it is not part of the prescribed material.
4.38 Did you make use of the discussion forum on myUnisa?

[1]
[2]
[3]
[4]
[5]
Yes.
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 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.
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.
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.
4.45 If access to the internet is a prerequisite to study this module

[1]
[2]
[3]
[4]
54
I would not be able to do the module.

I would be able to spend up to one hour per week on-line.
I would be able to spend one to two hours per week on-line.
I would be able to spend more than two hours per week on-line.
ECS1601/101
8.8
Second semester assignments
8.8.1 Assignment 01
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
796619
1 August 2016
prescribed book
46 questions
Answer this assignment on the prescribed answer sheet or submit it on myUnisa.

1.1
The three major flows in any economy are

[1]
[2]
[3]
[4]
[5]
1.2

[1]
[2]
[3]
[4]
[5]
1.3
Flows can only change as a result of stocks.

A stock has a time dimension and it can be measured over a period.
A stock has a time dimension and it can thus only be measured at a particular moment.
A flow has a time dimension and it can be measured over a period.
Income and production are examples of stock variables.
The two major markets in the circular flow of income and expenditure are the
[1]
[2]
[3]
[4]
[5]
1.4
income, spending and saving.

income, government spending and consumption.
spending, production and investment.
production, income and spending.
production, exports and government spending.
foreign exchange market and factor market.

goods market and factor market.
goods market and services market.
public market and private market.
factor market and production market.
Which one of the following statements on the factors of production is true?

[1]
[2]
[3]
[4]
[5]
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.
In the circular flow of income and spending, financial institutions

[1]
[2]
[3]
[4]
[5]
56
wages, rent, natural resources and household consumption.

investment, government spending, household consumption and exports.
natural resources, entrepreneurship, capital and money.
wages, rent, interest and profit.
natural resources, entrepreneurship, labour and capital.
In the circular flow of income and spending, government

[1]
[2]
[3]
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
The different components of income are

[1]
[2]
[3]
[4]
[5]
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
1.11 The labour market is an example of a

[1]
[2]
[3]
[4]
[5]
factor market.
goods market.
foreign exchange market.
financial market.
money market.
1.12 Which one of the following statements is false?

[1]
[2]
[3]
[4]
[5]
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]
increase government spending to firms.

decrease government spending to firms.
increase spending on public goods and services.
increase taxes received from households.
increase consumer spending on goods and services by promoting the goods market.
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
1.15 Which one of the following statements is true?

[1]
[2]
[3]
[4]
[5]
Properties of money include durability, divisibility and intrinsic value.

Iron and copper make good coins today, due to the scarce nature of these resources.
Certificates of deposit were the first form of paper money.
Fiduciary money refers to money that is completely backed by gold.
Due to South Africas abundance of gold, South African paper money is backed by gold held at
the South African Reserve Bank
1.16 The most comprehensive measure of money is equal to

[1]
[2]
[3]
[4]
[5]
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
Other shortterm and

mediumterm
deposits
919 270
M2
2 051 308
Longterm
deposits
462 557
Source: South African Reserve Bank Quarterly Bulletin, December 2014. Statistical tables.
[1]
[2]
[3]
[4]
[5]
R87 014 million

R549 323 million
R636 337 million
R2 513 865 million
R1 132 039 million
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]
To formulate and implement fiscal policy

To maintain financial stability
To finance government expenditure
To provide public goods and services
To act as a banker to foreign countries that wish to borrow funds
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.

[1]
[2]
[3]
[4]
[5]
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.

[1]
[2]
[3]
[4]
[5]
As interest rates increase, bond prices decrease.

As interest rates decrease, bond prices increase.
There is a positive relationship between interest rates and bond prices.
59
1.23 The figure below indicates that
[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.

[1]
[2]
[3]
[4]
[5]
The only important rate in the economy is the repo rate.

The interbank lending rate is an example of an interest rate that is used in the South African
economy.
Interest rates can generally be thought of as the price that consumers pay for loans.
Interest rates in an economy generally tend to move in harmony.
Interest rates are the rates that banks earn on funds lent.
1.25 The independent money supply curve

[1]
[2]
[3]
[4]
[5]
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.
1.27 Which one of the following statements on monetary policy is incorrect?

[1]
[2]
[3]
[4]
[5]
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.

[1]
[2]
[3]
[4]
[5]
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.
Use the information below to answer questions 1.29 and 1.30:

After the implementation of a new government policy to increase spending on infrastructure, the
employment levels within the country are at an all-time high. As a result, the country is currently
experiencing inflation levels of 7% per annum.
1.29 How would the South African Reserve Bank approach monetary policy in terms of its inflationtargeting mandate?
[1]
[2]
[3]
[4]
[5]
Implement policy aimed at increasing the levels of inflation.

Implement policy aimed at decreasing the levels of inflation.
Implement policy aimed at keeping the inflation levels constant.
Refrain from implementing policy, as it cannot control the levels of inflation.
Advise government on the type of fiscal policy that can help with the inflation levels.
1.30 Which tool would the South African Reserve Bank use to achieve these targets?
[1]
[2]
[3]
[4]
[5]
Decrease the repo rate.

Increase the repo rate.
Keep the repo rate constant.
Wait to see what government will do about it.
Advise the government to increase income taxes.
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]
I have unlimited access to the internet.

Less than 500 MB.
Between 500MB and 1GB.
Between 1GB and 2GB.
More than 2GB.
1.34 The sections of the learning units that I had to study to complete this assignment
[1]
[2]
[3]
[4]
[5]
helped me to work through the textbook systematically.

did not help me to understand the study material in the textbook better.
was totally irrelevant to the assignment questions.
I did not use the learning units at all although I have access to it.
I have not received a study guide.
1.35 Indicate the value being added by the DVD during your completion of this assignment.
[1]
[2]
[3]
[4]
[5]

I did not use it.
1.36 Indicate the value being added by the CD-ROM during your completion of this assignment.
[1]
[2]
[3]
[4]
[5]
62

I did not use it.
ECS1601/101
1.37 Did you make use of other resources on the WWW apart for myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
1.38 Concerning the module website on myUnisa.

[1]
[2]
[3]
[4]
[5]
I am not aware of the website.

I am aware of the website but have not visited it.
I visited the website once but did not find it helpful.
I visit the website regularly and find it helpful.
I visit the website only when I receive an announcement that there is something new.
1.39 Which one of the following best describes your use of the e-tutor site on myUnisa?
[1]
[2]
[3]
[4]
[5]
I did not visit it at all.

I only visited it once or twice.
I visited it occasionally.
I visited it regularly.
I visited it extensively.
1.40 Concerning the discussion forum on the e-tutor webpage on myUnisa:

[1]
[2]
[3]
[4]
[5]
I am not aware of the discussion forum.

I am aware of the discussion forum, but do not use it.
I visited the discussion forum at least once, but did not find it interesting.
I visit the discussion forum regularly and take part.
I would like to take part in the discussion forum, but do not know how to.
1.41 Which one of the following best describes your experience with the services of the e-tutor?
[1]
[2]
[3]
[4]
[5]

I find it helpful.
[1]
[2]
[3]
[4]
I am not aware of the Powerpoint slides.

I am aware of the slides but have not used it.
I am aware of the slides and have used it sometimes.
I am aware of the slides and use it regularly.
63
[1]
[2]
[3]
[4]
[5]

I find it helpful.
on myUnisa best?
[1]
[2]
[3]
[4]
I am not aware of the quizzes.

I am aware of the quizzes but have not used it.
I am aware of the quizzes and have used it sometimes.
I am aware of the quizzes and use it regularly.
on myUnisa best?
[1]
[2]
[3]
[4]
[5]

I find it helpful.
1.46 Do you attend the tutor classes offered at the learning centres?
[1]
[2]
[3]
[4]
[5]
64
Yes, the tutorials help me understand the work better.

Yes, but the tutorial did not help me.
No, I prefer to work by myself.
No, there is no tuition available for this module at the learning centre closest to me.
No, for any other reason.
ECS1601/101
8.8.2 Assignment 02
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
793480
22 August 2016
prescribed book
30 questions
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
Which of the following is not a way of financing government expenditure?

[1]
[2]
[3]
[4]
2.3
foreign borrowing
taxes from households and firms
domestic borrowing
borrowing from government itself
The public sector in South Africa comprises _________ .

[1]
[2]
[3]
[4]
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]
Government receives taxes from firms and spends only on households.

Government receives taxes from both households and firms and in return provides both roleplayers with public goods.
The government purchases factors from the goods market and goods from the factor market.
The government produces goods which are sold in the factor market to both firms and
households.
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
Which of the following does not form part of fiscal policy?

[1]
[2]
[3]
[4]
2.7
expansionary monetary policy

contractionary monetary policy
expansionary fiscal policy
contractionary fiscal policy
Fiscal policy refers to movements in..... aimed at influencing..

[1]
[2]
[3]
[4]
2.9
a change in value-added tax

a change in the repo rate
a change in personal income tax
a change in the administration of national pensions
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
the changing of all street names to indigenous names

the process of the change of ownership from private enterprise to government
the process of the change of ownership from government to the private sector
the transference of ownership of your small Toyota Corolla to your younger sibling
government spending; the interest rate level

taxes and government spending; the rate of inflation
government spending and taxes; aggregate output
the interest rate level and government borrowing; the deficit of the government
Which one of the following correctly indicates the appropriate policy action for government?
[1]
[2]
[3]
[4]
In order to stimulate economic activity, government increases the tax rate.

In order to dampen down or reduce economic activity, government increases its spending.
In order to stimulate economic activity, government reduces the tax rate.
In order to dampen down or reduce economic activity, government decreases the tax rate.
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]
Decrease government expenditure; larger budget surplus

Increase government expenditure; larger budget surplus
Increase government expenditure; larger budget deficit
Decrease government expenditure; larger budget deficit
2.11 Neutrality of a tax system implies that _________ .

[1]
[2]
[3]
[4]
66
taxes should have a significant effect on relative prices

taxes should have minimal effect on relative prices
taxes should be convenient
the tax burden must be spread as fairly as possible
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.
2.13 A primary factor driving international trade is _____ .

[1]
[2]
[3]
[4]
the need for political allies

factor endowment or natural resource differences
taste and preferences
geographical proximity of trading partners
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.
2.15 South Africa has a comparative advantage in the production of _____ .

[1]
[2]
[3]
[4]
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
2.17 Which of these statements is correct?

[1]
[2]
[3]
[4]
The exchange rate is a price.

The exchange rate cannot be seen as a price because it is not determined by demand and
supply.
If more South African rands are needed to buy one British pound sterling this month than last
month, then the rand is said to have appreciated against the pound sterling.
If fewer South African rands are needed to buy one pound sterling this month than last month,
then the rand is said to have depreciated against the pound sterling.
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)
2015 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]
depreciated, depreciated and depreciated

appreciated, appreciated and appreciated
depreciated, appreciated and appreciated
appreciated, depreciated and appreciated
2.19 In the South African foreign exchange market, ______ .

[1]
[2]
[3]
[4]
an appreciation of the rand relative to the US dollar will result in

South African exports to the US
an appreciation of the rand relative to the US dollar will result in
South African imports from the US
a depreciation of the rand relative to the US dollar will result in
exports to the US
a depreciation of the rand relative to the US dollar will result in
imports from the US
2.20 The quantity of South African rand supplied will increase if _______ .
[1]
[2]
[3]
[4]
68
the interest rate in South Africa rises

South African imports from the US increase
there is an expectation of a future appreciation of the rand
fewer South Africans travel overseas
an increase in the amount of

an increase in the amount of
a decrease in South African
an increase in South African
ECS1601/101
2.21 If the interest rate on South African assets increases, _____ .
[1]
[2]
[3]
[4]
the quantity of dollars supplied will increase

the quantity of dollars supplied will decrease
the supply of dollars will increase
the supply of dollars will decrease
Use the figure below of a hypothetical foreign exchange market to answer question 2.22.
Rand per dollar
D3
D2
D1
uantity of dollars per day
2.22 The shift in the demand curve from D2 to D3 can be attributed to _______ .
[1]
[2]
[3]
[4]
an increase in South African tourists to the US

an expectation of a decrease in value of the US dollar
a decrease in the purchase of American assets by South African investors
a decrease in the purchase of South African assets by American investors
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
QUANTITY OF GOOD B=50
QUANTITY OF GOOD C=50
2013 prices
R2
R2
R2
2014 prices
R6
R10
R20
2.27 The consumer price index (CPI) for 2014 is ______ .

[1]
[2]
[3]
[4]
20
300
600
1800
2.28 Gross domestic product (GDP) measures ______ .

[1]
[2]
[3]
[4]
income and expenditure in an economy within a given time period

total value of all final goods and services produced in an economy over a period of time
total value of intermediate and final goods and services produced in an economy over a period
of time
total value of all sales in an economy over a given time period
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
purchase of the Kia Rio

purchase of the Ford Ranger
sale of the Ford Figo
all of the sales and purchases above
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]
whether economic welfare has changed

whether real production has changed
which sector of the economy is growing faster
whether goods are more expensive in the current year
71
8.8.3 Assignment 03
Unique number:
Closing date:
Content:
Questions:
Weight:
To submit:
646207
5 September 2016
prescribed book
30 questions
3.1
Which one of the following statements is true?

[1]
[2]
[3]
[4]
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.
Which of the following statements is/are correct?

In the simple Keynesian model, the assumption that the economy consists of households and firms
has which implication(s)?
3.3
(a)
(b)
(c)
Total spending consists of consumption and investment spending.

Total spending consists of only consumption spending.
Total spending consists of only investment spending.
[1]
[2]
[3]
[4]
[5]

Only a is correct.
Only b is correct.
Only c is correct.
None of the above is correct.
Which one of the following is NOT a characteristic of a consumption function?

[1]
[2]
[3]
[4]
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
Consumption has a positive relationship with income.

Consumption is positive regardless of the amount of income.
When income increases, the increase in consumption is less than the increase in income.
Consumption has an inverse relationship with income.
100 + 0,35Y
100 + 0,65Y
-100 + 0,35Y
-100 + 0,65Y
ECS1601/101
3.5
Which of the following statements is/are true in the Keynesian model?

(a)
(b)
(c)
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]

Only a and c are correct.
Only b and c are correct
3.6

(a)
(b)
(c)
(d)
A > Y shows excess demand.

A > Y shows excess supply.
Y > A shows excess demand.
Y > A shows excess supply.
[1]
[2]
[3]
[4]

Only a and d are correct.
Only b and d are correct.
73
Questions 3.7 and 3.8 are based on the following information:

The saving function is S = -1000 + 0,25Y and autonomous investment spending = 100.
3.7
What is the aggregate spending equation?

[1]
[2]
[3]
[4]
3.8
What is the equilibrium level of income?

[1]
[2]
[3]
[4]
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
Which of the following statement(s) is/are true?

(a)
(b)
(c)
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.
Questions 3.11 to 3.15 are based on the diagram below:
3.11 What function may be illustrated by A?

[1]
[2]
[3]
[4]
the consumption function

the saving function
aggregate expenditure
the investment function
3.12 What function may be illustrated by B?

[1]
[2]
[3]
[4]
the consumption function

the saving function
aggregate expenditure
the investment function
3.13. Suppose in the aforementioned diagram, C = 1 500 + 0,9Y.

The marginal propensity to save will be_______ and multiplier will be_______
[1]
[2]
[3]
[4]
0,9; 10.
0,1; 1,11.
0,1; 10.
0,9; 1,11.
3.14 Given the above, what is the saving function?

[1]
[2]
[3]
[4]
[5]
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]
The multiplier effect will stay the same.

The multiplier effect will decrease.
The multiplier effect will increase.
The change in the multiplier will be ambiguous.
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]
It will become flatter.

It will become steeper.
It will stay the same.
Consumption and taxes are not related.
3.18 Again suppose an endogenous tax variable in our model, what will happen to the size of the
multiplier?
[1]
[2]
[3]
[4]
It will remain the same.

It will increase.
It will decrease.
The size of the multiplier and the tax rate are not related.
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]

It will shift upwards.
It will shift downwards.
The slope becomes flatter.
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]

It will increase.
It will decrease.
3.25 Given the following information for a small open economy:

C = R1 000 + 0,2Yd
The government spending is R300
The proportional tax rate is 28%
Exports are R100
Z = R20 + 0,1Y
Investment is R200
Calculate the multiplier and equilibrium level of income.
(Note: Round the multiplier off to two digits after the decimal before calculating the equilibrium income
level and round the equilibrium income level off to the closest full rand.)
[1]
[2]
[3]
[4]
1,05 and R1 659 respectively

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]
It reduces the multiplier.

It reduces the equilibrium income level, ceteris paribus.
It leaves autonomous spending unchanged.
It has the same effect as a decrease in government spending.
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]
It decreases the aggregate spending.

It increases the multiplier.
It raises the equilibrium level of income.
It decreases the multiplier.
Questions 3.28 to 3.30 are based on the following diagram and the information provided below:
Government spending = R500

Exports = R300
Autonomous consumption = R200
Autonomous imports = 0
Investment expenditure = R100
Marginal propensity to consume = 0,6
Marginal propensity to import = 0,1
Proportional tax rate = 0,25
3.28 Autonomous expenditure () is equal to
[1]
[2]
[3]
[4]
[5]
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
prescribed book
45 questions
4.1

(a)
(b)
(c)
(d)
[1]
[2]
[3]
[4]
[5]
4.2
an increase in total production and an increase in the price level

a decrease in total production and an increase in the price level
a decrease in total production and a decrease in the price level
an increase in total production and a decrease in the price level
If income is below the full-employment level, what would be the result of an expansionary fiscal
policy?
[1]
[2]
[3]
[4]
80
a downward shift of the AS curve and a leftward shift of the AD curve.

an upward shift of the AS curve and a rightward shift of the AD curve.
a downward shift of the AS curve and a rightward shift of the AD curve.
an upward shift of the AS curve and leftward shift of the AD curve.
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
Prices are variable in the AD-AS model.

An upward shift of the AS curve and a rightward shift of the AD curve will definitely increase
production and income.
Stagflation refers to a situation of high unemployment combined with a low inflation rate.
When the AS curve is very steep, a rightward shift of the AD curve will lead to an increase in
production and income with little or no increase in the price level.
an increase in total production and a decrease in the price level

a decrease in total production and an increase in the price level
a decrease in total production and a decrease in the price level
an increase in total production and an increase in the price level
ECS1601/101
4.5

[1]
[2]
[3]
[4]
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.

A leftward shift of the AD curve could be caused by ...
4.7
(a)
(b)
(c)
(d)
an increase in government spending and a decrease in taxes.

an increase in net exports.
a deterioration in weather conditions.
an increase in the interest rate.
[1]
[2]
[3]
[4]
[5]
a, b and c
only a and b
only a and c
only b and c
only d

An upward/leftward shift of the AS curve could be caused by ...
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

[1]
[2]
[3]
[4]
A contractionary monetary policy will lead to an increase in investment spending.

There is an inverse (negative) relationship between the interest rate and investment spending.
Monetary policy in South Africa is conducted by the SARB.
An increase in investment spending will increase aggregate demand.
81
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
4.10 Which of the following statements is/are correct?

(a)
(b)
(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
4.11 Which one of the following statements is correct?

[1]
[2]
[3]
[4]
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.

[1]
[2]
[3]
[4]
82
A situation in which growth is constrained by a deficit on the current account is referred to as a

balance of payments constraint.
South Africa follows a policy of autarky, meaning it is closed to international trade.
Exports are exogenous whilst imports are endogenous.
A current account surplus implies that exports are larger than imports.
ECS1601/101
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 19-9 (a)
Figure 19-10

(a)
(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)

[1]
[2]
[3]
The definition of inflation does not attempt to identify its causes.

Inflation is a continuous and considerable rise in prices.
A once-off increase in the price of oil is called inflation.

[1]
[2]
[3]
[4]
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

(a)
(b)
(c)
(d)
[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

[1]
[2]
[3]
[4]
Demand-pull inflation creates a situation known as stagflation.

Cost-push inflation is described as too much money chasing too few goods.
Cost-push inflation is triggered by an increase in consumption spending.
An earthquake can trigger cost-push inflation.

(a)
(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)

[1]
[2]
[3]
[4]
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
(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

[1]
[2]
[3]
[4]
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.

(a)
(b)
(c)
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

(a)
(b)
(c)
[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

[1]
[2]
[3]
[4]
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.

[1]
[2]
[3]
[4]
A recession is represented by the upswing section of the business cycle.

All recessions last for the same amount of time and are identical in terms of severity.
Upswings and downswings always last for the same period of time.
Economic growth is not stable.

[1]
[2]
[3]
[4]
Eskoms load shedding programme is a supply side constraint to economic growth.

The discovery of crude oil in South Africa could contribute to economic growth.
Capital widening is when the ratio of capital to labour in the economy increases.
To encourage growth, government could endeavour to reduce the obstacles (as far as possible)
to entrepreneurship.

[1]
[2]
[3]
[4]
86
Domestic demand consists of imports and exports.

Labour is a demand factor which influences economic growth.
Import substitution played a significant role in the initial growth of the South African
manufacturing sector.
The labour force in South Africa is highly skilled.
ECS1601/101
[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 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 I have not sufficient access to a DVD machine.
4.34 Which one of the following best describes your use of the DVD?
[1]
[2]
[3]
[4]
[5]
I did not use the DVD.

I first studied the chapter in the textbook and then watched the DVD.
I first watched the DVD and then studied the chapter in the textbook.
I used the DVD only when I had a problem with a chapter in the textbook.
I watched it occasionally.
4.35 Did you make use of the CD ROM to study for the course?
[1]
[2]
[3]
[4]
[5]
Yes.
No, because I do not have sufficient access to a computer.
87
4.36 Which one of the following best describes your use of the CD ROM?
[1]
[2]
[3]
[4]
[5]
I did not use the CD ROM.

I first studied the chapter in the textbook and then used the CD ROM.
I first used the CD ROM and then studied the chapter in the textbook.
I used the CD ROM only when I had a problem with a chapter in the textbook.
I used the CD ROM occasionally.
4.37 Did you make use of video clips on myUnisa?

[1]
[2]
[3]
[4]
[5]
Yes.
No, because I was unable to download and view the video clips.
No, because it is not part of the prescribed material.
4.38 Did you make use of the discussion forum on myUnisa?

[1]
[2]
[3]
[4]
[5]
Yes.
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.
4.40 Did you make use of past exam papers which are posted on myUnisa?
[1]
[2]
[3]
[4]
[5]
Yes.
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.
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.
4.45 If access to the internet is a prerequisite to study this module

[1]
[2]
[3]
[4]
I would not be able to do the module.

I would be able to spend up to one hour per week on-line.
I would be able to spend one to two hours per week on-line.
I would be able to spend more than two hours per week on-line.
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
Admission to the examination

TO BE ADMITTED TO THE EXAMINATION, YOU MUST SUBMIT AT LEAST ASSIGNMENT 01
OR ASSIGNMENT 02 BEFORE THE DUE DATE.
For students to fully benefit from formative tuition and assessment, the management of the University
decided to introduce compulsory assignments in all modules. You are therefore required to submit a
compulsory assignment to obtain admission to the examination. For this module, you can submit
either Assignment 01 or Assignment 02 before the due date for examination admission purposes.
Please ensure that your compulsory assignment reaches the University before the due date late
submission will result in your not being admitted to the examination.
Although examination admission can be obtained by submitting either Assignment 01 or Assignment
02, we strongly advise you to do all four assignments as they contribute towards your semester mark.
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.
90
ECS1601/101
9.4
The format of the examination paper

You will receive a partial fill-in examination paper plus a mark-reading sheet. This implies
that you must complete the first section of the exam on the examination paper. The second
section of the paper must be completed on the mark-reading sheet. The examination paper
plus the mark-reading sheet are handed to the invigilator.
The main features of the exam paper are:
(i)
It will be a two-hour examination paper counting 100 marks.
(ii)
The use of a non-programmable calculator is permissible.
(iii)
The paper will consist of two sections: Section A and Section B.
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
Previous examination papers

Copies of previous exam papers are available on myUnisa. Please note that the solutions to these
papers are not made available. Do not call us for the solutions the process of battling with a
question, the engagement with the prescribed material and eventually being able to state the answer
in your own words are important steps in your preparation for the exam. If you look carefully you
should be able to find the answers. However, should you get stuck on some of the questions, do not
hesitate to contact us for assistance.
Working through old examination papers only is a recipe for failure the key to success is to work
consistently during the semester, do all the assignments and work through ALL the activities in the
study guide.
9.6
Final year concession (FI) students

The my Studies @ Unisa brochure contains important information on the final year concession
procedure to assist students with one or two modules outstanding. The Department of Examination
Administration (DEA) will inform all students who qualify for a final year (FI) concession by sms/email.
Please note that the Economics Department does not identify the FI students. If you are of the opinion
that you qualify for this concession, you should contact the examinations department to confirm this
(exams@unisa.ac.za).
91

ECS1601 Tutorial Letter Breakdown

Enviado por

Dados do documento

Descrição original:

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

ECS1601 Tutorial Letter Breakdown

Enviado por

Direitos autorais:

Formatos disponíveis

ECS1601/101/3/2016

Tutorial Letter 101/3/2016

This tutorial letter contains important information about ECS1601.

INTRODUCTION AND WELCOME

Tutorial Letter 101

PURPOSE OF AND OUTCOMES FOR THE MODULE

explain the functioning of the economy as a whole

assess the performance of the economy

For any queries relating to myUnisa, contact myunisahelp@unisa.ac.za.

For any queries relating to myLife email accounts, contact mylifehelp@unisa.ac.za.

STUDENT SUPPORT SERVICES

Contact with fellow students

myUnisa and your e-tutor

Tutorial support programme

The MO 001/3/2016 which contains the learning units

Start each learning unit by reading the Outcomes.

Proposed study programme

Work through learning unit 1 of the study guide.

Work through learning unit 2 of the study guide.

Work through learning unit 3 of the study guide.

Work through learning unit 4 of the study guide.

Work through learning unit 5 of the study guide.

Closing date for Assignment 01.

Work through sections 6.1 to 6.5 of learning unit 6 of the study

Work through sections 6.6 to 6.8 of learning unit 6 of the study

Work through learning unit 7 of the study guide.

Closing date for Assignment 02.

Work through learning unit 8 of the study guide.

Work through learning unit 9 of the study guide.

Closing date for Assignment 03.

Work through learning units 10 and 11 of the study guide.

Revise learning units 1 to 4 of the study guide.

Revise learning units 5 to 7 of the study guide.

Closing date for Assignment 04.

Revise learning units 8 to 11 of the study guide.

Work through learning unit 1 of the study guide.

Work through learning unit 2 of the study guide.

Work through learning unit 3 of the study guide.

Work through learning unit 4 of the study guide.

Closing date for Assignment 01.

Work through learning unit 5 of the study guide.

Closing date for Assignment 02.

Work through learning unit 7 of the study guide.

Work through learning unit 8 of the study guide.

Closing date for Assignment 03.

Work through learning unit 9 of the study guide.

Work through learning units 10 and 11 of the study guide.

Revise learning units 1 to 4 of the study guide.

Closing date for Assignment 04.

Revise learning units 5 to 7 of the study guide.

Revise learning units 8 to 11 of the study guide.

Assessment of the examination

How does this work in practice?

The examination mark

(42 x 20%) + (60 x 80%)

Extension for submitting assignments

NO EXTENSIONS FOR SUBMISSION OF ASSIGNMENTS WILL BE CONSIDERED.

Unique assignment numbers

Due dates of assignments

Learning units 1 and 2

Learning units 6 and 7

Learning units 1 and 2