1 DISCUSSION OF ASSIGNMENT 02/2018..........................................................................1
Dear Student
In this tutorial letter, we provide you with the answers to the multiple-choice
questions in Assignment 02, with brief explanations where necessary. In
most cases, however, we merely refer you to the prescribed textbook and/or
the study guide. If you have any questions about the answers that are
provided, please discuss this with your fellow students and your e-tutor on
the e-tutor website.
1 DISCUSSION OF ASSIGNMENT 02/2018
All references, unless otherwise indicated, are to the prescribed textbook:
Mohr, P and associates 2015. Economics for South African students, fifth
edition. Van Schaik (Pretoria)
2.1 The correct option is [3]. Refer to section 15.1.
2.2 This question was removed. Refer to the announcement about
assignment two on myUnisa.
.
2.3 This question was removed. Refer to the announcement about
assignment two on myUnisa.
2.4 This question was removed. Refer to the announcement about
assignment two on myUnisa.
2.5 The correct option is [3]. The transfer of ownership from a private
enterprise to the government is called nationalization. Privatization
refers to the transfer of state-owned business to private ownership.
, 2.6 The correct option is [2]. Demand management involves a change in
fiscal policy and monetary policy. Thus, option [1], [3] and [4] are
incorrect options.
2.7 The correct option is [3]. Refer to section on Neutrality on page 293.
Use the following information to answer questions 2.8 and 2.9
John earned R 100 000, 00 in 2016 on which he paid R10 000, 00
personal income tax. In 2017, he earned R 200 000, 00 on which
he paid R 20 000, 00 personal income tax.
2.8 The correct option is [2]. The personal income tax paid by John was
10% in 2016 and 2017. Thus, it was the same at all levels of income.
This is an example of a proportional tax. Refer to the section on
different types of taxes.
2.9 The correct option is [4]. The amount of VAT that John will pay cannot
be determined with the given information. VAT is an indirect tax, which
is levied on goods and services. To calculate how much he paid, we
need information on John’s consumption spending.
2.10 This question was removed. Refer to the announcement about
assignment two on myUnisa.
2.11 The correct option is [1]. Refer to the section 16.2.
2.12 The correct option is [1]. Country 1 or 2 produce the same quantity of
flour with the same resources. Therefore, no country is more efficient
in producing flour than the other.
2.13 The correct option is [2]. Country 1 has a comparative advantage
because its opportunity cost to produce flour is lower than that of
country 2.
Dear Student
In this tutorial letter, we provide you with the answers to the multiple-choice
questions in Assignment 02, with brief explanations where necessary. In
most cases, however, we merely refer you to the prescribed textbook and/or
the study guide. If you have any questions about the answers that are
provided, please discuss this with your fellow students and your e-tutor on
the e-tutor website.
1 DISCUSSION OF ASSIGNMENT 02/2018
All references, unless otherwise indicated, are to the prescribed textbook:
Mohr, P and associates 2015. Economics for South African students, fifth
edition. Van Schaik (Pretoria)
2.1 The correct option is [3]. Refer to section 15.1.
2.2 This question was removed. Refer to the announcement about
assignment two on myUnisa.
.
2.3 This question was removed. Refer to the announcement about
assignment two on myUnisa.
2.4 This question was removed. Refer to the announcement about
assignment two on myUnisa.
2.5 The correct option is [3]. The transfer of ownership from a private
enterprise to the government is called nationalization. Privatization
refers to the transfer of state-owned business to private ownership.
, 2.6 The correct option is [2]. Demand management involves a change in
fiscal policy and monetary policy. Thus, option [1], [3] and [4] are
incorrect options.
2.7 The correct option is [3]. Refer to section on Neutrality on page 293.
Use the following information to answer questions 2.8 and 2.9
John earned R 100 000, 00 in 2016 on which he paid R10 000, 00
personal income tax. In 2017, he earned R 200 000, 00 on which
he paid R 20 000, 00 personal income tax.
2.8 The correct option is [2]. The personal income tax paid by John was
10% in 2016 and 2017. Thus, it was the same at all levels of income.
This is an example of a proportional tax. Refer to the section on
different types of taxes.
2.9 The correct option is [4]. The amount of VAT that John will pay cannot
be determined with the given information. VAT is an indirect tax, which
is levied on goods and services. To calculate how much he paid, we
need information on John’s consumption spending.
2.10 This question was removed. Refer to the announcement about
assignment two on myUnisa.
2.11 The correct option is [1]. Refer to the section 16.2.
2.12 The correct option is [1]. Country 1 or 2 produce the same quantity of
flour with the same resources. Therefore, no country is more efficient
in producing flour than the other.
2.13 The correct option is [2]. Country 1 has a comparative advantage
because its opportunity cost to produce flour is lower than that of
country 2.
