Summary ECS1601 Memo

UNISA Exam Memo May/June 2014 ECS1601

SECTION A (50 MARKS)

Question 1 (2 marks)

 Taxes and
 Savings

Question 2 (2 marks)

 Accommodation Policy and
 Open Market Policy

Question 3 (2 marks)

 Neutrality
 Equity
 Administrative Simplicity

Neutrality-Taxes should have the minimum impact on incentive to work and efficient
allocation of resources.

Question 4 (1 mark)
 Comparative

Question 5 (2 marks)
 Decision Lag
 Implementation Lag

Question 6 (2 marks)
 CPI: is an index of a representative “basket” of consumer goods and services
or the cost of living. The CPI thus represents the cost of the “shopping basket”
of goods and services of a typical or average South African household.

 PPI: measures prices at the level of the first significant commercial transaction
e.g. prices of imported goods are measured at the point where they enter the
country and not where they are sold to consumers


Question 7 (2 marks)


( )




1

, Question 8

8.1 and 8.2 (3 +1 marks)




8.3 (1 mark)
 South African Reserve Bank (SARB)

Question 9

9.1 ( ) (2 marks)
( ) ( ) ( )


9.2 ( ) ( ) (3
marks)

9.3 (2 marks)




2