Economic

1.3 Read the following extract and answer questions 1.3 - 1.5. "Illegal car imports cost the taxman as much as Robn Kia MD Gary Scott says about 55,000 of the illegal imports slip into SA every year, more than the number of new vehicles sold every month An estimated 440,000 illegally imported, used cars are travelling regularly on SA roads, costing the exchequer up to R8bn in lost taxes and posing a major risk to road safety, Kia SA MD Gary Scott said on Tuesday. He blamed slack regulations for the fact that about 55,000 "grey" imports, as they are known, slip into SA each year. That's more than the number of new vehicles sold every month..." The problem being illustrated in the above extract regarding the use of gross domestic product as a measure of economic performance is. .. (4 marks) a) Data revision b) Economic welfare c) Unrecorded activity d) Non-market production1.2 Which of the following conditions would not be studied by the macroeconomist? a) The level of national unemployment during 1988. b) The effect of government economic policy on the inflation rate during 1987. c) The effect of changing petroleum prices on the demand for coal. d) The effect of lower income taxes on the rate of economic growth.1.5 Which method of calculating GDP do illegally imported used cars distort? a) Production method. b) Income method. c) Value added method. d) Expenditure method1.7 By hiking interest rates, the European Central Bank is aiming to achieve: a) Price stability b) Economic growth c) Full employment d) Balance of payments stability