OTE2601 Assignment 1 (DETAILED ANSWERS) 2024 - DISTINCTION GUARANTEED

OTE2601 Assignment 1 (DETAILED ANSWERS) 2024 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references..... QUESTION 1 In 2020, the world was devastated and ravaged by the unprecedented Corona Virus (Covid-19) pandemic. Most businesses closed-down; which resulted in serious loss of jobs to certain employees whilst some business put employees on contract or retrenched them. While conducting an oversight visit in Port Elizabeth on Thursday, honourable President Cyril Matamela Ramaphosa; noted that while the lockdown had managed to flatten the virus’ curve, the focus, going forward, needed to be on restarting the economy which had suffered greatly under the Disaster Management Act’s restrictive regulations. President Ramaphosa’s engagement with NEDLAC on Friday signified the start of a gradual easing process which was expected to culminate in a district-based move to Level 3 lockdown before the end of May. Health Minister Zweli Mkhize had, however, warned that regions which were unable to prove their medical readiness amid burgeoning caseloads would likely remain exempt from lower-level reprieves. Prior to that; the rate of unemployment was sky rocketing in South Africa. Study the figure below. 1.1. In your opinion, what would you consider to be the results of unemployment in any country (15) 1.2 Causes of unemployment (15) 1.3 Solutions to unemployment (15) 1.4 The role of Trade Unions in the economy of a country (15) [60] QUESTION 2 Presidents Nelson Rolihlahla Mandela once said: “In this world nothing can be said to be certain but death and taxes.” This is one of the most popular economic quotations of all time. This quotation is so widely used because it is so true. Tax is unavoidable. Taxation is the way in which the government of a country, gets the income it needs to provide services to the people of the country. Taxation is a very complex subject with thousands of laws and regulations. 2.1 Distinguish between direct and indirect taxation. How does the country benefit from them? (10) 2.2 Stokvels have been around for a long time now and they are uniquely South African. The term “stokvel” dates back to the 19th century when English settlers described their auctions as “stock fairs”. The illiterate ones referred to it as Stokvel instead of “stock fairs”. During these fairs, farmers and labourers would sometimes pitch in together to purchase livestock. Elaborate on the role of each of the following types of stokvel; 2.2.1 Grocery (3) 2.2.2 Basic (3) 2.2.3 Funeral cover (3) 2.2.4 Property (3) 2.2.5 Investment (3) /15/ 2.3 Money When you are penniless, you do not have friends but when you are rich you have a lot of friends. Money is therefore the means whereby human needs are satisfied. It is also known as a means of payment. It is used daily in buying and selling transactions, circulates continuously and facilitates trade. Money can be called or viewed by various concepts or names determined by the place where it is used. Elaborate on any five concepts or names associated with money depending on where it is used (15)