ECS1601 Assignment 2 (COMPLETE ANSWERS) 2024 - DUE 30 July 2024

ECS1601 Assignment 2 (COMPLETE ANSWERS) 2024 - DUE 30 July 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us . . Which one of the following is most likely to increase the demand for US dollars on the South African foreign exchangemarket? a. a decrease in international tourism by South Africans. b. a recession in South Africa. c. an expected decline in the value of the rand relative to the dollar. d. a fall in the interest rates in the United States. Clear my choice Question 18 Not yet answered Marked out of 1.00 The question is based on the following diagram: What would the likely impact be on the above diagram if the following events take place: Due to a slowdown in economic growth in China, fewer raw materials are exported to China from South Africa. Due to political unrest in South Africa, direct investment declines. a. Due to a slowdown in economic growth in China, fewer raw materials are exported to China from South Africa. Dueto political unrest in South Africa, direct investment declines. b. These events will cause the rand to depreciate. This can be demonstrated by a rightward shift of the demand fordollar curve due to the lower exports to China and a rightward shift of the supply of dollars curve due to the decreasein foreign direct investment. c. These events will cause the rand to depreciate.This can be demonstrated by a leftward shift of the demand fordollars curve. This leftward shift is caused by both a decrease in exports and a decrease in foreign direct investment. d. These events will cause the rand to depreciate. This can be demonstrated by a leftward shift of the supply of dollarscurve.This leftward shift is caused by both a decrease in exports and a decrease in foreign direct investment. e. These events will cause the rand to depreciate. This can be demonstrated by a leftward shift of the demand fordollars curve due to the lower exports to China and a leftwards shift of the supply of dollars curve due to thedecrease in foreign direct investment. Clear my choice UNISA  2024  ECS1601-24-Y_AS2  Introduction  Assessment 2 Question 15 Not yet answered Marked out of 1.00 QUIZ Answer the question below based on the information in the following table, where the numbers represent the number of unitsof each good produced. South Africa has a comparative advantage in the production of… a. grapes and textiles b. neither grapes nor textiles c. textiles d. grapes Clear my choice Question 16 Not yet answered Marked out of 1.00 The question is based on the following table which provides the data for the average production of cell phones and tyres in aweek in two countries: The opportunity cost of producing a cellphone in country A is … while it is …in country B. a. 0,2 tyres for every cellphone; 0,25 tyres for every cellphone. b. 0,2 tyres for every cellphone; 4 tyres for every cellphone. c. 7 200 tyres; 1 100 tyres. d. 5 500 cellphones; 1 800 cellphones. Clear my choice UNISA  2024  ECS1601-24-Y_AS2  Introduction  Assessment 2 Question 13 Not yet answered Marked out of 1.00 Question 14 Not yet answered Marked out of 1.00 QUIZ In the South African foreign exchange market… a. a depreciation of the rand relative to the US dollar will result in an increase in South African imports from the US b. a depreciation of the rand relative to the US dollar will result in a decrease in South African exports to the US c. an appreciation of the rand relative to the US dollar will result in an increase in the amount of South African exportsto the US d. an appreciation of the rand relative to the US dollar will result in an increase in the amount of South African importsfrom the US Clear my choice The following question is based on the following information: Rugby Inc can produce fi ve rugby balls or ten soccer balls perday, while Soccer Inc can produce three rugby balls or produce four soccer balls per week. Which of the following statementsare correct? a) Rugby Inc has an absolute advantage in producing rugby balls. b) Rugby Inc has an absolute advantage in producing soccer balls. c) Rugby Inc has a relative (or comparative) advantage in producing rugby balls. d) Rugby Inc has a relative (or comparative) advantage in producing soccer balls. e) Soccer Inc has a relative (or comparative) advantage in producing rugby balls. f) Soccer Inc should specialise in rugby balls, while Rugby Inc should specialise in soccer balls. a. a, c, d, e, f b. a, b, c, e, f c. b, c, d, e, f d. a, b, d, e, f Clear my choice UNISA  2024  ECS1601-24-Y_AS2  Introduction  Assessment 2 Question 10 Not yet answered Marked out of 1.00 Question 11 Not yet answered Marked out of 1.00 QUIZ What effect does depreciation of the rand have on the South African current account in the balance of payments anddomestic prices? a. A depreciation of the rand against the dollar worsens the current account in the balance of payments and reducesdomestic prices. b. A depreciation only increases domestic prices and does not affect the current account. c. A depreciation of the rand against the dollar improves the current account in the balance of payments and raisesdomestic prices. d. A higher exchange rate does not affect the current account in the balance of payments and domestic prices. Clear my choice If the exchange rate changes from R9,60 = $1,00 to R8,50 = $1,00, then a. the rand has depreciated against the dollar. b. the demand for dollars has increased c. the rand has weakened against the dollar. d. the rand has appreciated against the dollar. Clear my choice Question 12 Not yet answered Marked out of 1.00 According to the theory of comparative advantage, a necessary condition for a country to export a good is that… a. the country has an absolute advantage in producing the good compared to its trading partners b. the cost of producing the good relative to other goods, is lower compared to that of the country’s trading partners c. the wage rate in producing the good is lower in the country compared to its trading partners d. the country can produce it using less labour than its trading partners Clear my choice UNISA  2024  ECS1601-24-Y_AS2  Introduction  Assessment 2 Question 7 Not yet answered Marked out of 1.00 Question 8 Not yet answered Marked out of 1.00 QUIZ Expansionary fi scal policy refers to……………, while restrictive fi scal policy refers to …………… a. an increase in taxes; an increase in government spending. b. an increase in government spending; an increase in taxes. c. an increase in government spending; a decrease in taxes. d. an increase in government borrowing; a decrease in government spending. Clear my choice Which of the following statements are correct? a) South African government raises most of its tax revenue through personal income tax and value-added tax. b) Personal income tax in South Africa is a progressive tax. c) Government should implement restrictive fi scal policy measures during a recession. d) Privatization could improve effi ciency, but it might have an adverse effect on employment. a. a, b, d b. b, c, d c. All of the statements are correct. d. a, b, c Clear my choice Question 9 Not yet answered Marked out of 1.00 Value-Added Tax (VAT) is an example of a/an … tax a. direct b. excise duty c. ad valorem d. specifi c Clear my choice UNISA  2024  ECS1601-24-Y_AS2  Introduction  Assessment 2 Question 5 Not yet answered Marked out of 1.00 Question 6 Not yet answered Marked out of 1.00 QUIZ If the government decides to increase value-added tax (VAT) from 15 to 16%, what impact would this have on consumers? a. Tax revenue generated from an increase in VAT will also increase spending on public healthcare. b. An increase in the VAT rate does not affect consumers’ decisions to save and invest. c. VAT will only affect producers and not consumers. d. A higher VAT rate will make households with the lowest incomes worse off. Clear my choice Which one of the following statements regarding taxes is correct? a. Equity in the tax system ensures simplicity and neutrality. b. In a good tax system, compliance costs are equal to administration costs. c. The aim of taxes is to always change the behaviour of people. d. Taxes which distort relative prices are not neutral. Clear my choice UNISA  2024  ECS1601-24-Y_AS2  Introduction  Assessment 2 Question 3 Not yet answered Marked out of 1.00 Question 4 Not yet answered Marked out of 1.00 QUIZ In South Africa, excise duty is levied on……… a. alcohol and tobacco only. b. alcohol, tobacco, fuel, and a few luxury goods. c. fuel and a few luxury goods only. d. income and wealth. Clear my choice Which one of the following statements is appropriate about government action to stimulate economic activities? a. Decreasing the repo rate. b. Decreasing both repo rate and taxation. c. Increasing both taxation and the repo rate. d. Decreasing taxation. Clear my choice UNISA  2024  ECS1601-24-Y_AS2  Introduction  Assessment 2 Question 1 Not yet answered Marked out of 1.00 Question 2 Not yet answered Marked out of 1.00 QUIZ Which one of the following statements is correct? a. Eskom is an example of a nationalised entity. b. Nationalisation will attract foreign direct investment, which will increase foreign reserves. c. Nationalising an organisation would increase its effi ciency d. The transfer of ownership from a private enterprise to the government is called nationalisation. Clear my choice If the government intends making use of a contractionary fi scal policy, it should … a. increase taxes and decrease government spending. b. decrease taxes and decrease government spending. c. decrease taxes and increase government spending. d. increase the interest rate.