8.6.2 Assignment 02 (semester 1)
Assignment 02
Unique number 604137
Closing date 23 March 2021
Learning units 3 to 5 of the Study guide and the relevant
Content chapters of the prescribed book
Questions 30 questions
Weight 20% of the semester mark
To submit Through myUnisa or on a mark-reading sheet
2.1 An appropriate government intervention in the economy …
[1] is to encourage a monopolistic market that satisfies the aggregate demand for goods
and services by the public.
[2] is to get involved in the economic sectors where the private sector is producing
goods and services more efficiently.
[3] involves measures to correct market failure and provision of public goods and
services.
[4] has to do with taking income from those with low incomes and providing income to
those with higher incomes.
2.2 Which of the following statements is/are correct?
a) The failure of markets to produce efficient outcomes, is called government failure.
b) Government may fail to have efficient outcomes due to corruption.
c) Government failure arises because bureaucrats put the interest of society first.
[1] b and c
[2] a and b
[3] a and c
[4] b
28
, ECS1601/101/3/2021
2.3 Which one of the following statements on nationalisation and privatisation is correct?
[1] Nationalisation is the transfer of ownership from the public sector to the private
sector.
[2] Privatisation is the transfer of ownership from private enterprise to government.
[3] One of the arguments in favour of privatisation is that the privatised firm may attract
foreign direct investment.
[4] Privately owned enterprises are often a burden on the taxpayer.
2.4 Fiscal policy …
[1] involves spending and/or changing of taxes by government.
[2] is said to be expansionary if the government increases taxes.
[3] does not influence the economy.
[4] can be used to attain price stability in the economy.
2.5 Which of the following statements regarding fiscal policy and the budget is/are correct?
a) A country’s budget is the main instrument of fiscal policy
b) Budget outlines government spending plans and tax rates to be levied on taxpayers.
c) Political decisions about government spending plans are reflected in the budget.
[1] a
[2] b
[3] a and b
[4] a, b and c
2.6 Expansionary fiscal policy refers to_______, while contractionary fiscal policy refers
to_______.
[1] an increase in government borrowing; decrease in government spending.
[2] decrease in taxes; increase in government spending.
[3] an increase in government spending; an increase in taxes.
[4] demand management policy; monetary policy.
2.7 Which one of the following statements regarding government spending in South Africa is
correct?
[1] A rapid increase of people migrating from rural areas to the cities of Gauteng is one
of the causes of increased government spending.
[2] Table 3.1 in the prescribed textbook shows that the total spending by general
government (% of GDE) was 20,5 in 2010%.
[3] The composition of government spending has remained the same over a period 1990
to 2016.
[4] Political or other shocks always results in a massive decrease in spending by
government and households.
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Assignment 02
Unique number 604137
Closing date 23 March 2021
Learning units 3 to 5 of the Study guide and the relevant
Content chapters of the prescribed book
Questions 30 questions
Weight 20% of the semester mark
To submit Through myUnisa or on a mark-reading sheet
2.1 An appropriate government intervention in the economy …
[1] is to encourage a monopolistic market that satisfies the aggregate demand for goods
and services by the public.
[2] is to get involved in the economic sectors where the private sector is producing
goods and services more efficiently.
[3] involves measures to correct market failure and provision of public goods and
services.
[4] has to do with taking income from those with low incomes and providing income to
those with higher incomes.
2.2 Which of the following statements is/are correct?
a) The failure of markets to produce efficient outcomes, is called government failure.
b) Government may fail to have efficient outcomes due to corruption.
c) Government failure arises because bureaucrats put the interest of society first.
[1] b and c
[2] a and b
[3] a and c
[4] b
28
, ECS1601/101/3/2021
2.3 Which one of the following statements on nationalisation and privatisation is correct?
[1] Nationalisation is the transfer of ownership from the public sector to the private
sector.
[2] Privatisation is the transfer of ownership from private enterprise to government.
[3] One of the arguments in favour of privatisation is that the privatised firm may attract
foreign direct investment.
[4] Privately owned enterprises are often a burden on the taxpayer.
2.4 Fiscal policy …
[1] involves spending and/or changing of taxes by government.
[2] is said to be expansionary if the government increases taxes.
[3] does not influence the economy.
[4] can be used to attain price stability in the economy.
2.5 Which of the following statements regarding fiscal policy and the budget is/are correct?
a) A country’s budget is the main instrument of fiscal policy
b) Budget outlines government spending plans and tax rates to be levied on taxpayers.
c) Political decisions about government spending plans are reflected in the budget.
[1] a
[2] b
[3] a and b
[4] a, b and c
2.6 Expansionary fiscal policy refers to_______, while contractionary fiscal policy refers
to_______.
[1] an increase in government borrowing; decrease in government spending.
[2] decrease in taxes; increase in government spending.
[3] an increase in government spending; an increase in taxes.
[4] demand management policy; monetary policy.
2.7 Which one of the following statements regarding government spending in South Africa is
correct?
[1] A rapid increase of people migrating from rural areas to the cities of Gauteng is one
of the causes of increased government spending.
[2] Table 3.1 in the prescribed textbook shows that the total spending by general
government (% of GDE) was 20,5 in 2010%.
[3] The composition of government spending has remained the same over a period 1990
to 2016.
[4] Political or other shocks always results in a massive decrease in spending by
government and households.
29
