MANCOSA UNIVERSITY ECONOMICS EXAM QUESTION AND ANSWER PROVIDED WHATSAPP 91 9924764558

 

MANCOSA UNIVERSITY ECONOMICS EXAM QUESTION AND ANSWER PROVIDED WHATSAPP 91 9924764558

 

1.1 Which of the following macroeconomic objectives is being pursued by the Bank of England? (4 Marks)

a) Price stability

b) Full employment

c) Economic growth

d) Wage rate stability

 

 

 

1.2 As companies in England increase wages, the greatest impact on economic growth will be on which of the following sources of growth? (4 Marks)

 

a) Labour supply

b) Human capital

c) Productivity

d) Capital stock

 

 

 

1.3Which of the following macroeconomic objective is measured by the variable(s) discussed in the above extract?

(4 Marks)

a) Price stability

b) Redistribution of income

c) Full employment

d) Balance of payments stability

 

 

1.4 The theoretical argument in support for a Basic Income Grant, is based in which of the following government objectives? (4 Marks)

a) Full employment

b) Balance of payments stability

c) Redistribution of income

d) Economic growth

 

 

 

 

 

1.5 Suppose that the South African Economy is in a recession, the policy response in the extract above would be inline with which of the following schools of economic thought? (4 Marks)

 

a) Keynesian theory

b) Classical theorists

c) Marxists economics

d) Monetary economics

 

 

 

 

1.6 In the Simple Keynesian Macroeconomic Model, which of the following will determine the level of autonomous spending by South African households? (4 Marks)

 

a) The level of economic growth

b) The level of risk and or uncertainty

c) The level of the interest rate

d) Savings and or credit

 

 

1.7 The problem illustrated in the above extract is that of… (4 Marks)

a) Data revision

b) Economic welfare

c) Unrecorded activity

d) Non-market production

 

 

1.8 Which of the following methods of calculating GDP would NOT be accurate when the information on the sale and purchases of intermediate goods and services is not available? (4 Marks)

 

a) The income method

b) The expenditure method

c) The production method

d) The cost method

 

 

 

 

 

 

 

 

 

1.9 The actions above taken by the Competition Commission… (4 Marks)

a) …are an example of government failure aimed at ensuring market failure.

b) …are an example of market failure aimed at ensuring an efficient allocation of resources.

c) …are an example of government intervention aimed at an efficient allocation of resources.

d) …are an example of government intervention aimed at reducing market failure.

 

 

 

1.10 The decision taken by the Competition Commission, is aimed at ensuring which of the following views of an economy? (4 Marks)

 

a) Marxist economics

b) Socialist economics

c) Keynesian economics

d) Free market economics

 

 

 

 

1.11 The above action by President Cyril Ramaphosa is an example of… (4 Marks)

a) Market participation.

b) Public provision of goods and services.

c) Regulation.

d) Government spending.

 

 

1.12 The Kenyan Central Bank in its aim above will ultimately… (4 Marks)

a) … reduce the amount of M2 money.

b) … reduce the amount of bank notes and coins in circulation.

c) … increase the amount of M1 money.

d) … reduce the amount of bank notes and coins.

 

 

1.13 The increase in the unemployment rate as a result of the civil unrest is referred to as… (4 Marks)

a) Cyclical unemployment

b) Structural unemployment

c) Seasonal unemployment

d) Frictional unemployment

 

 

 

 

 

 

1.14 Given the information in the extract, the Simple Keynesian Macroeconomic Model concludes the following about the South African economy. (4 Marks)

 

a) Excess demand

b) Excess supply

c) Macroeconomic equilibrium

d) Aggregate spending is less than output

 

 

1.15 Which of the following presents the view of inflation depicted above? (4 Marks)

 

a) The monetarist approach.

b) Cost pull inflation.

c) Demand push inflation.

d) The conflict approach.

 

 

 

1.16 From the above extract, the South African economy is in which phase of the business cycle? (4 Marks)

 

a) The upturn phase.

b) The expansion phase.

c) The peaking out phase.

d) The slowdown phase.

 

 

 

1.17 “The South African Reserve Bank’s target range of 3% to 6%” is a demonstration of which of the following costs of inflation? (4 Marks)

 

a) Distribution costs

b) Economic costs

c) Non-economic costs

d) Social and political effects

 

 

 

 

 

 

 

1.18 Suppose that the bank later wishes to raise interest rates, which of the following instruments will they NOT make use of? (4 Marks)

 

a) Accommodation policy

b) Open-market policy

c) Raise the Repo rate

d) Raise the cost of borrowing

 

 

1.19The view held by Roberto Bagnato is that historically the $/ZAR exchange rate is… (4 Marks)

a) A fixed exchange rate.

b) A floating exchange rate.

c) A managed floating exchange rate.

d) A real exchange rate

 

 

1.20 South Africa trades in commodities… (4 Marks)

 

a) For political pressure

b) Due to its absolute advantage in producing commodities

c) Due to its comparative advantage in producing commodities

d) To invest in the global economy

 

 

 

1.21 GDP can be calculated by all of the following methods except… (4 Marks)

 

a) Adding up the spending on goods and services by business, government, households, and foreigners, and subtracting imports.

b) Adding up the “value added” at every stage of production in the economy.

c) Adding up all of the receipts of households, government, and business.

d) Adding up all income and expenses by consumers and businesses.

 

1.22 The unemployment figure presented here is the… (4 Marks)

a) Seasonal unemployment.

b) Narrow definition.

c) Expanded definition.

d) Real unemployment

 

 

 

1.23 Demand-pull inflation can occur when… (4 Marks)

 

a) There is a shortage of investment and investors bid up interest rates.

b) Inventories shrink and consumers bid up prices.

c) There is a surplus of resources and so wages are bid up by employers.

d) Undesired investment occurs.

 

 

1.24 Which of the following groups is protected from a sudden increase in inflation? (4 Marks)

 

a) Borrowers who have loans at fixed interest rates.

b) Fixed-income groups.

c) Workers who receive fixed wages under the multiyear contracts.

d) People who rent their homes under short-term lease agreements in comparison to those who own their homes.

 

 

1.25 The multiplier process can occur when a decrease in investment spending… (4 Marks)

 

a) Increases household saving, causing consumers to buy more goods and services.

b) Reduces household incomes, causing consumers to buy fewer goods and services.

c) Increases household incomes, causing consumers to buy fewer goods and services.

d) Reduces household incomes, causing consumers to buy more goods and services