1.1 Read the following extract and answer questions 1.1 and 1.2.

Pay rises offered despite Bank of England plea for restraint over inflation Employers are set to increase wages at their fastest pace in almost a decade this year despite a plea for pay restraint from the governor of the Bank of England. Some 46 per cent of companies struggling to keep hold of workers have already raised the pay of incumbent staff, according to research, and 40 per cent are planning to do so in future. Source: https://www.thetimes.co.uk/article/pay-rises-offered-despite-bank-of-england-plea-for-restraintover-inflation-xhf8dbn5b Accessed: 14/02/222

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

1.3 Read the following extract and answer the question.

Twin deficits key concern for next PH president The next CEO of the Philippines will have to grapple with "twin deficits" that may return this year, as the government spends more to rebuild the economy and the demand for foreign exchange expands with the resumption of investment spending coming out of a prolonged pandemic. This is according to JP Morgan economist Nur Raisah Rasid, who sees a return to twin deficitsreferring to a simultaneous deterioration in the government's budget position and widening of the country's current account deficit as foreign exchange transactions with the rest of the world increase. Source: https://business.inquirer.net/340890/twin-deficits-key-concern-for-next-ph-president Accessed: 14/02/222

Which 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 Read the following extract and answer questions 1.4-1.5.

Politics and economics are set to collide over welfare payments in the world's most unequal nation. The first clue over which will prevail may come in South African President Cyril Ramaphosa's State-Of-TheNation address on Thursday. Record unemployment and deepening poverty has fuelled calls for the government to move toward a basic income grant, which would be the biggest of its kind globally, or to at least extend a temporary stipend of 350 rand ($23) a month paid to the unemployed during the pandemic permanent at that level or slightly higher. That measure added 10.3-million people to the welfare net. Source: https://www.engineeringnews.co.za/article/south-africa-torn-over-multibillion-cost-of-fighting-inequality2022-02-09/rep_id:4136 Accessed: 14/02/222

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 economic

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 Read the following extract and answer the question that follows.

Construction data fudging kills reliability of official statistics Revelations about irregularities in the way the infrastructure ministry collected and compiled key construction data have delivered a devastating blow to the credibility of government statistics as a whole. The facts have left no doubt that the ministry must take strong action to prevent a recurrence. But they have also underscored the need for a fundamental review of the entire government's systems for compiling and reporting official statistics... Source: https://www.dandc.eu/en/article/big-issue-africas-most-populous-country-worsening-poverty Accessed: 14/02/22

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 Read the following extract and answer questions 1,9 and 1.10.

FIRSTRAND BANK, WESBANK AND TFS REFERRED TO COMPETITION TRIBUNAL FOR COLLUSION JOHANNESBURG - The Competition Commission said that it had referred FirstRand Bank, WesBank and Toyota Financial Services (TFS) South Africa to the Competition Tribunal for collusion. An investigation by the commission has found that WesBank and TFS agreed to divide markets by allocating customers or suppliers in the market for provision of vehicle finance, which is anti-competitive behaviour. The companies also agreed to stop WesBank from offering financing for some Toyota models for people who wanted to buy them from authorised Toyota dealerships. Source: https://www.wsj.com/articles/china-unveils-new-rules-targeting-anticompetitive-practices-by-internetcompanies-11629199116 Accessed: 23/08/21

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.

1.10The 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 economic