ECS1601 – ASSESSMENT 6 – EXPECTED QUESTIONS AND ANSWERS - 2024
Assessment 6
Started on Saturday, 11 November 2023,
State Finished
Completed on Saturday, 11 November 2023,
Time taken
Marks 22.00/25.00
Grade 88.00 out of 100.00
Question 1
Which one of the following statements is correct regarding the national
budget?
a.
It is presented by the Governor of the South Africa Reserve Bank (SARB).
b.
It is an instrument of fiscal policy.
c.
It is presented biannually.
d.
It is an instrument of monetary policy.
Feedback
The national Budget is an instrument of fiscal policy.
Question 2
Which one of the following will decrease a deficit on the current account for
South Africa?
a.
Farmer Brown imports a tractor from Germany.
b.
A foreign firm buys an existing factory in South Africa.
c.
Susan, a South African resident, receives dividends from a foreign firm.
1
, ECS1601 – ASSESSMENT 6 – EXPECTED QUESTIONS AND ANSWERS - 2024
d.
A Chinese firm buys fewer raw materials from South Africa.
Feedback
See section 5.5 of the textbook. A deficit on the current account exists if exports,
service receipts and income receipts are less than imports, payment for services and
income payments. When Farmer Brown imports a tractor, this is an increase in
imports and consequently the deficit increases. When a foreign firm buys an existing
factory in South Africa, net direct investment increases on the financial account – it
does not influence the current account. When Susan receives dividends from a
foreign firm, income receipts increase and the deficit on the current account declines.
When fewer raw materials are bought from South Africa, exports decline and the
deficit on the current account increases.
Question 3
Which of the following statements is/are incorrect with regard to the main
purpose of economic theory?
a) Economic theory aims to capture every detail of a phenomenon under study.
b) Economic theory explains how the real economy functions.
c) Economic theory aims to predict changes in economic conditions and its impact
on the whole economy.
d) Economic theory serves as an underpinning for the formulation and analysis of
economic policies.
a.
a and b
b.
a and c
c.
a only
d.
a, b, c and d
Feedback
2
Assessment 6
Started on Saturday, 11 November 2023,
State Finished
Completed on Saturday, 11 November 2023,
Time taken
Marks 22.00/25.00
Grade 88.00 out of 100.00
Question 1
Which one of the following statements is correct regarding the national
budget?
a.
It is presented by the Governor of the South Africa Reserve Bank (SARB).
b.
It is an instrument of fiscal policy.
c.
It is presented biannually.
d.
It is an instrument of monetary policy.
Feedback
The national Budget is an instrument of fiscal policy.
Question 2
Which one of the following will decrease a deficit on the current account for
South Africa?
a.
Farmer Brown imports a tractor from Germany.
b.
A foreign firm buys an existing factory in South Africa.
c.
Susan, a South African resident, receives dividends from a foreign firm.
1
, ECS1601 – ASSESSMENT 6 – EXPECTED QUESTIONS AND ANSWERS - 2024
d.
A Chinese firm buys fewer raw materials from South Africa.
Feedback
See section 5.5 of the textbook. A deficit on the current account exists if exports,
service receipts and income receipts are less than imports, payment for services and
income payments. When Farmer Brown imports a tractor, this is an increase in
imports and consequently the deficit increases. When a foreign firm buys an existing
factory in South Africa, net direct investment increases on the financial account – it
does not influence the current account. When Susan receives dividends from a
foreign firm, income receipts increase and the deficit on the current account declines.
When fewer raw materials are bought from South Africa, exports decline and the
deficit on the current account increases.
Question 3
Which of the following statements is/are incorrect with regard to the main
purpose of economic theory?
a) Economic theory aims to capture every detail of a phenomenon under study.
b) Economic theory explains how the real economy functions.
c) Economic theory aims to predict changes in economic conditions and its impact
on the whole economy.
d) Economic theory serves as an underpinning for the formulation and analysis of
economic policies.
a.
a and b
b.
a and c
c.
a only
d.
a, b, c and d
Feedback
2
