ECS2603
South AfriCAn EConomiC
indiCAtorS
ASSiGnmEnt 2
S1&S2
YEAr 2021
,Part 1 of 15 - Part1 3.0 PointsDeals with definitions and concepts for Lesson 2: National
accounts
Question 1 of 233.0 Points
Which 3 of the following statements with regards to Gross National Income (GNI) are correct?
A. GNI is a better measure than GDP of the standard of living of the residents of a country.
B. To derive GNI from GDP all primary income to the rest of the world must be subtracted.
C. Income received by a South African firm providing services in Nigeria is included in GNI.
D. GNI provides a measure of the production that takes place between the borders of a country.
E. GNI is always bigger than GDP.
F. To derive GNI from GDP all primary income from the rest of the world must be subtracted.
Answer Key:A, B, C
Part 2 of 15 - Part 17 4.0 Points
Question 2 of 234.0 Points
Click to see additional instructions
Use the following information to calculate the gross national income (GNI) for a hypothetical country
called Zanadu:
Gross domestic product: R100 million
Final consumption expenditure by households: R60 million
Wages earned in Zanadu by its permanent residents: R40 million
Dividends paid to shareholders in other countries: R12 million
Wages paid to factory workers from Ghana: R15 million
Wages earned by Zanadu permanent residents working in London: R13 million
Profits earned for building a dam in Zambia by a firm from Zanadu: R2 million
Interest received from foreign banks by permanent residents of Zanadu: R8 million
R 96 million
Answer Key:96
Feedback:
GNI = GDP plus primary income from the rest of the world minus primary income to the rest of the
world.
In this example primary income from the rest of the world = wages earned by Zanadu permanent
residents working in London + profits earned for building a dam in Zambia + interest received from
foreign banks = R13 million + R2 million + R8 million = R23 million.
Primary income to the rest of the world = dividends paid to shareholders in other countries + wages
paid to factory workers from Ghana = R12 million + R15 million = R27 million. GNI = R100 million +
R23 million – R27 million = R96 million.
Note that final consumption expenditure by households and wages earned by permanent residents in
Zanadu are included in GDP and are not part of primary income.
, Part 3 of 15 - Part 18 4.0 Points
Question 3 of 234.0 Points
Use the online statistical query tool of the SARB to extract the real GNI yearly figures (KBP 6016Y) for
South Arica for 2010 to 2020 and answer the question.
Which 4 of the following statements are correct?
A. The real GNI for 2018 was higher than that for 2017.
B. In 2016 the real GNI was R3 023 570 million.
C. The real GNI decreased from 2017 to 2018.
D. The real GNI for 2015 was higher than for 2018.
E. In 2014 real GNI increased by R64 296 million.
F. The lowest real GNI was recorded in 2011.
G. In 2020 real GNI declined by R131 598 million.
H. The highest real GNI was recorded in 2019.
Answer Key:B, C, G, H
Part 4 of 15 - Pat 19 6.0 Points
Question 4 of 236.0 Points
Which 6 of the following statements are correct with regards to the concept expenditure on gross
domestic product?
A. It indicates the value of total spending within the borders of a country.
B. It excludes investment spending by firms on capital goods produced in the rest of the world.
C. It includes investment by firms on capital goods produced in South Africa.
D. It includes consumption spending by households on beer imported from Germany.
E. It indicates the value of the income earned by all permanent residents of a country.
F. Is a measure of GDP.
G. Included in the value of final consumption by households (C), capital formation (I) and general
government expenditure (G) are the value of imports.
H. It includes imports from the rest of the world.
I. Expenditure on GDP includes imports and excludes exports.
J. In symbols expenditure on GDP is written as C + I + G + X - Z
K. It indicates the expenditure on final goods and services produced within the borders of a country.
Answer Key:B, C, F, G, J, K
Feedback:Expenditure on GDP is the total value of spending on goods and services produced within
the borders of a country. It excludes imports since imports are produced in the rest of the world, but
includes exports since exports are produced within the borders of the country. In symbols it is written
as C + I + G + (X – Z). It excludes investment spending by firms on capital goods produced in the rest of
the world since these capital goods are imported. It is a measure of GDP using the expenditure
approach.
Part 5 of 15 - Part 20 6.0 Points
Question 5 of 236.0 Points
Which 6 of the following statements are correct with regards to the concept gross domestic
expenditure (GDE) ?
A. It includes consumption spending by households on beer imported from Germany.
B. In symbols GDE is written as C + I + G
C. It indicates the value of the income earned by all permanent residents of a country.
D. It includes investment by firms on capital goods produced in South Africa.
E. Is the same as GDP.
F. In symbols GDE is written as C + I + G + (X – Z).
G. It includes exports from South Africa to the rest of the world.
H. It includes investment spending by firms on capital goods produced in the rest of the world.
South AfriCAn EConomiC
indiCAtorS
ASSiGnmEnt 2
S1&S2
YEAr 2021
,Part 1 of 15 - Part1 3.0 PointsDeals with definitions and concepts for Lesson 2: National
accounts
Question 1 of 233.0 Points
Which 3 of the following statements with regards to Gross National Income (GNI) are correct?
A. GNI is a better measure than GDP of the standard of living of the residents of a country.
B. To derive GNI from GDP all primary income to the rest of the world must be subtracted.
C. Income received by a South African firm providing services in Nigeria is included in GNI.
D. GNI provides a measure of the production that takes place between the borders of a country.
E. GNI is always bigger than GDP.
F. To derive GNI from GDP all primary income from the rest of the world must be subtracted.
Answer Key:A, B, C
Part 2 of 15 - Part 17 4.0 Points
Question 2 of 234.0 Points
Click to see additional instructions
Use the following information to calculate the gross national income (GNI) for a hypothetical country
called Zanadu:
Gross domestic product: R100 million
Final consumption expenditure by households: R60 million
Wages earned in Zanadu by its permanent residents: R40 million
Dividends paid to shareholders in other countries: R12 million
Wages paid to factory workers from Ghana: R15 million
Wages earned by Zanadu permanent residents working in London: R13 million
Profits earned for building a dam in Zambia by a firm from Zanadu: R2 million
Interest received from foreign banks by permanent residents of Zanadu: R8 million
R 96 million
Answer Key:96
Feedback:
GNI = GDP plus primary income from the rest of the world minus primary income to the rest of the
world.
In this example primary income from the rest of the world = wages earned by Zanadu permanent
residents working in London + profits earned for building a dam in Zambia + interest received from
foreign banks = R13 million + R2 million + R8 million = R23 million.
Primary income to the rest of the world = dividends paid to shareholders in other countries + wages
paid to factory workers from Ghana = R12 million + R15 million = R27 million. GNI = R100 million +
R23 million – R27 million = R96 million.
Note that final consumption expenditure by households and wages earned by permanent residents in
Zanadu are included in GDP and are not part of primary income.
, Part 3 of 15 - Part 18 4.0 Points
Question 3 of 234.0 Points
Use the online statistical query tool of the SARB to extract the real GNI yearly figures (KBP 6016Y) for
South Arica for 2010 to 2020 and answer the question.
Which 4 of the following statements are correct?
A. The real GNI for 2018 was higher than that for 2017.
B. In 2016 the real GNI was R3 023 570 million.
C. The real GNI decreased from 2017 to 2018.
D. The real GNI for 2015 was higher than for 2018.
E. In 2014 real GNI increased by R64 296 million.
F. The lowest real GNI was recorded in 2011.
G. In 2020 real GNI declined by R131 598 million.
H. The highest real GNI was recorded in 2019.
Answer Key:B, C, G, H
Part 4 of 15 - Pat 19 6.0 Points
Question 4 of 236.0 Points
Which 6 of the following statements are correct with regards to the concept expenditure on gross
domestic product?
A. It indicates the value of total spending within the borders of a country.
B. It excludes investment spending by firms on capital goods produced in the rest of the world.
C. It includes investment by firms on capital goods produced in South Africa.
D. It includes consumption spending by households on beer imported from Germany.
E. It indicates the value of the income earned by all permanent residents of a country.
F. Is a measure of GDP.
G. Included in the value of final consumption by households (C), capital formation (I) and general
government expenditure (G) are the value of imports.
H. It includes imports from the rest of the world.
I. Expenditure on GDP includes imports and excludes exports.
J. In symbols expenditure on GDP is written as C + I + G + X - Z
K. It indicates the expenditure on final goods and services produced within the borders of a country.
Answer Key:B, C, F, G, J, K
Feedback:Expenditure on GDP is the total value of spending on goods and services produced within
the borders of a country. It excludes imports since imports are produced in the rest of the world, but
includes exports since exports are produced within the borders of the country. In symbols it is written
as C + I + G + (X – Z). It excludes investment spending by firms on capital goods produced in the rest of
the world since these capital goods are imported. It is a measure of GDP using the expenditure
approach.
Part 5 of 15 - Part 20 6.0 Points
Question 5 of 236.0 Points
Which 6 of the following statements are correct with regards to the concept gross domestic
expenditure (GDE) ?
A. It includes consumption spending by households on beer imported from Germany.
B. In symbols GDE is written as C + I + G
C. It indicates the value of the income earned by all permanent residents of a country.
D. It includes investment by firms on capital goods produced in South Africa.
E. Is the same as GDP.
F. In symbols GDE is written as C + I + G + (X – Z).
G. It includes exports from South Africa to the rest of the world.
H. It includes investment spending by firms on capital goods produced in the rest of the world.
