ASSIGNMENT 03
UNIQUE NUMBER 301297
CLOSING DATE 21 June 2021
LEARNING UNITS 8 to 10
WEIGHT FOR YEAR MARK 30% of year mark
NUMBER OF QUESTIONS 20
Please answer this assignment on the prescribed answer sheet on myUnisa or on hard copy.
Feedback on these questions will be provided on myUnisa under Additional Resources after the
final closing date for the assignment.
For Questions 3.1 to 3.5 you need to indicate whether the statement is true or false. If the statement
is true, choose [1] and if the statement is false, choose [2].
3.1 An example of free riding is when government imposes a tax on companies based on their
carbon emissions.
[1] True
[2] False
3.2 The provision of electricity to households and businesses is a function of local government.
[1] True
[2] False
3.3 Increasing the repo rate in order to ensure price stabilisation in a country forms part of the
regulation function of government.
[1] True
[2] False
3.4 During periods of high inflation it is best to keep your wealth in the form of money.
[1] True
[2] False
3.5 A tariff on imported solar panels is an example of free trade.
[1] True.
[2] False
Questions 3.6 to 3.20 are multiple-choice questions. Only one of the options [1], [2], [3], [4] or [5] is
correct. You have to choose the option that you think is correct.
, 3.6 Which of the following are examples of public goods?
(a) Private security services that provide armed reaction
(b) National defence force
(c) University swimming pool
(d) Clean air
[1] a b c d
[2] a b d
[3] b c
[4] b d
[5] a d
3.7 Which of the following statements regarding the budget of the South African government is
correct?
[1] Less than half of government's non-interest expenditure is financed by tax revenue.
[2] Local government is responsible for the largest part of government expenditure.
[3] An increase in the government deficit will result in an increase in debt-servicing costs
in future.
[4] The government's deficit can only be financed by borrowing from foreigners.
3.8 When Ruben's income increased from R550 000 a year R560 000 a year, the percentage tax
that he had to pay increased from 26,8% to 27% of his total salary. This is an example of the
_____ principle that tax should comply with.
(a) neutrality
(b) equity
(c) administrative simplicity
(d) ability-to-pay
(e) benefit
[1] a e
[2] b d
[3] b
[4] c
[5] a
3.9 The time that elapses from the date on which the Treasury implements a tax on soft drinks that
contain sugar, until the time that consumers start to purchase more sugar-free soft drinks and
fewer soft drinks that contain sugar, is an example of the _____ lag.
UNIQUE NUMBER 301297
CLOSING DATE 21 June 2021
LEARNING UNITS 8 to 10
WEIGHT FOR YEAR MARK 30% of year mark
NUMBER OF QUESTIONS 20
Please answer this assignment on the prescribed answer sheet on myUnisa or on hard copy.
Feedback on these questions will be provided on myUnisa under Additional Resources after the
final closing date for the assignment.
For Questions 3.1 to 3.5 you need to indicate whether the statement is true or false. If the statement
is true, choose [1] and if the statement is false, choose [2].
3.1 An example of free riding is when government imposes a tax on companies based on their
carbon emissions.
[1] True
[2] False
3.2 The provision of electricity to households and businesses is a function of local government.
[1] True
[2] False
3.3 Increasing the repo rate in order to ensure price stabilisation in a country forms part of the
regulation function of government.
[1] True
[2] False
3.4 During periods of high inflation it is best to keep your wealth in the form of money.
[1] True
[2] False
3.5 A tariff on imported solar panels is an example of free trade.
[1] True.
[2] False
Questions 3.6 to 3.20 are multiple-choice questions. Only one of the options [1], [2], [3], [4] or [5] is
correct. You have to choose the option that you think is correct.
, 3.6 Which of the following are examples of public goods?
(a) Private security services that provide armed reaction
(b) National defence force
(c) University swimming pool
(d) Clean air
[1] a b c d
[2] a b d
[3] b c
[4] b d
[5] a d
3.7 Which of the following statements regarding the budget of the South African government is
correct?
[1] Less than half of government's non-interest expenditure is financed by tax revenue.
[2] Local government is responsible for the largest part of government expenditure.
[3] An increase in the government deficit will result in an increase in debt-servicing costs
in future.
[4] The government's deficit can only be financed by borrowing from foreigners.
3.8 When Ruben's income increased from R550 000 a year R560 000 a year, the percentage tax
that he had to pay increased from 26,8% to 27% of his total salary. This is an example of the
_____ principle that tax should comply with.
(a) neutrality
(b) equity
(c) administrative simplicity
(d) ability-to-pay
(e) benefit
[1] a e
[2] b d
[3] b
[4] c
[5] a
3.9 The time that elapses from the date on which the Treasury implements a tax on soft drinks that
contain sugar, until the time that consumers start to purchase more sugar-free soft drinks and
fewer soft drinks that contain sugar, is an example of the _____ lag.
