ECS1601 - ASS3 - Q&A - S2 - 2023

Started on Saturday, 16 September 2023,
State Finished
Completed on Saturday, 16 September 2023,
Time taken
Grade 19.00 out of 20.00 (95%)


Question 1
Which of the following statements is/are correct about what influences South
African exports?
a) Changes in exchange rates do have an influence on South African exports.
b) Changes in economic conditions in the rest of the world.
c) Changes in the demand for exports.
e) International competitiveness does not influence exports.


a and b
a and c
a, b and e
a, b and c
a, c and e

Feedback
SA exports are influenced by economic conditions in the rest of the world,
international competitiveness, exchange rates, and the demand for exports does not
depend on the income level in SA; therefore, export spending is exogenous.



Question 2
If the government increases its expenditure, but keeps the tax rate constant,
we will find that consumption expenditure______, total tax revenue_____, and
investment spending______.

a.
stays the same, stays the same, stays the same
b.
increases, stays the same, stays the same
c.
increases, increases, stays the same

1