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Questions and Answers

What is the primary focus of microeconomics?

  • National output and income
  • Global economic trends
  • Decision-making processes of individuals and businesses (correct)
  • Aggregate economic quantities
  • Which learning outcome involves the use of econometric models?

  • Evaluate macroeconomic policies
  • Use simple econometric models (correct)
  • Appraise the impact of international markets
  • Explain social-political trends
  • Macroeconomics deals primarily with which of the following?

  • Consumer behavior
  • National output and income (correct)
  • Individual business strategies
  • Local market competition
  • Which of the following is a key component of public finance concepts?

    <p>Government expenditure and revenue collection</p> Signup and view all the answers

    What is an essential step recommended in setting your study schedule?

    <p>Ensure equal time on each section</p> Signup and view all the answers

    Evaluating the effects of macroeconomic policies primarily impacts which of the following?

    <p>Business environmental conditions</p> Signup and view all the answers

    What is one of the expected learning outcomes related to global trends?

    <p>Explain the effect of social-political trends</p> Signup and view all the answers

    Which reference is recommended for studying macroeconomics?

    <p>Parkin, M. (2019). Economics (13th ed.)</p> Signup and view all the answers

    Which of the following is NOT typically studied in macroeconomics?

    <p>Supply and demand in a single market</p> Signup and view all the answers

    How do microeconomic decisions influence the macroeconomy?

    <p>By impacting overall employment rates and economic growth</p> Signup and view all the answers

    What key question is a macroeconomist likely to study?

    <p>What factors determine productivity growth?</p> Signup and view all the answers

    Which of the following best defines macroeconomics?

    <p>Analysis of economic factors on a regional or global scale</p> Signup and view all the answers

    Which economist is recognized as the founding father of modern macroeconomics?

    <p>John Maynard Keynes</p> Signup and view all the answers

    What was the purpose of the Public Finance Management Act enacted in 1999?

    <p>To enhance the efficiency of public financial management</p> Signup and view all the answers

    What does the interaction between microeconomics and macroeconomics demonstrate?

    <p>Macro and micro perspectives on the economy are complementary</p> Signup and view all the answers

    Which of the following influences microeconomic decisions?

    <p>Health of the macroeconomy</p> Signup and view all the answers

    Which document focuses on financial management in local government budgets and expenditures?

    <p>Financial management and MFMA implementation in Local Government Budgets and Expenditure Review</p> Signup and view all the answers

    What year was the Draft Treasury Regulations published for public comments?

    <p>2012</p> Signup and view all the answers

    Which organization reported on public financial management reforms in post-conflict countries?

    <p>World Bank</p> Signup and view all the answers

    What is a primary focus of the 2011 Financial Management and MFMA Implementation literature?

    <p>Analyzing the financial efficiency of local governments</p> Signup and view all the answers

    Which document outlines amendments to the Treasury Regulations for public entities?

    <p>Treasury Regulations for trading entities</p> Signup and view all the answers

    In what context is the World Economic Forum's 2022 report titled 'Gloomy and more uncertain' published?

    <p>IMF World Economic Outlook</p> Signup and view all the answers

    Who authored the report on local experiences of social grants and economic precarity in Mpumalanga, South Africa?

    <p>Winchester, M.S. et al.</p> Signup and view all the answers

    What does positive net exports indicate?

    <p>A trade surplus</p> Signup and view all the answers

    What is the primary cause of inflation?

    <p>Increased demand for products and services</p> Signup and view all the answers

    Which of the following is true regarding the definition of unemployment?

    <p>It requires that individuals have sought employment in the past four weeks.</p> Signup and view all the answers

    How does the neoclassical perspective view supply and demand?

    <p>Supply comes first and creates its own demand.</p> Signup and view all the answers

    Which of the following best describes the consequences of excessive inflation?

    <p>Decreased overall spending</p> Signup and view all the answers

    Which group of individuals is excluded from the unemployment rate calculation?

    <p>Retired and disabled individuals</p> Signup and view all the answers

    In the context of macroeconomic theories, what does aggregate demand refer to?

    <p>The overall demand for goods and services</p> Signup and view all the answers

    What effect does a trade deficit have on economic growth?

    <p>It represents a loss for economic growth.</p> Signup and view all the answers

    What has significantly contributed to South Africa's fiscal crisis according to recent research?

    <p>Growth in civil service remuneration</p> Signup and view all the answers

    Which expenditure was notably affected by the inclusion of the R350 Covid-19 relief grant?

    <p>Social grants expenditure</p> Signup and view all the answers

    What economic action does expansionary fiscal policy involve?

    <p>Increasing aggregate demand</p> Signup and view all the answers

    What did the researchers identify as a hidden factor in the fiscal crisis?

    <p>Unrealistically high annual growth projections</p> Signup and view all the answers

    What fiscal situation has South Africa been facing according to the researchers?

    <p>A path of fiscal unsustainability</p> Signup and view all the answers

    What has resulted from the combination of increased public service remuneration and lower-than-expected revenue?

    <p>Higher government interest burden</p> Signup and view all the answers

    Which of the following is NOT a stated reason for South Africa's fiscal dilemma?

    <p>Increasing tourist revenue</p> Signup and view all the answers

    How has the number of social grant recipients impacted South Africa's fiscal situation?

    <p>It has increased the pressure on the fiscus</p> Signup and view all the answers

    What organization is responsible for conducting monetary policy in Nigeria?

    <p>Central Bank of Nigeria</p> Signup and view all the answers

    Which of the following is NOT a key responsibility of central banks?

    <p>Provide direct loans to individuals</p> Signup and view all the answers

    What is the primary aim of conducting monetary policy by the central bank?

    <p>Achieve price stability</p> Signup and view all the answers

    What method is commonly used by central banks to adjust the money supply?

    <p>Open market operations</p> Signup and view all the answers

    Which of the following central banks is equivalent to the South African Reserve Bank in India?

    <p>Reserve Bank of India</p> Signup and view all the answers

    How has the framework of monetary policy changed over recent decades?

    <p>It has undergone major changes.</p> Signup and view all the answers

    What is a typical consequence of central banks conducting monetary policy?

    <p>Lower interest rates leading to higher borrowing</p> Signup and view all the answers

    What are the primary benefits of a stable financial system managed by a central bank?

    <p>Promotion of investor confidence</p> Signup and view all the answers

    Study Notes

    Study Guide: Bachelor of Business Administration, Economics III

    • This study guide provides key areas for study for Economics III
    • It is vital to consult additional literature given the vastness of the subject.
    • The study guide covers prescribed resources for the course
    • It includes details on study material, legislation, and government publications.
    • It outlines multimedia resources (videos) and URLs for further study.

    Contents

    • Details of study material, including relevant books, articles, legislation, and government publications.
    • Topics covered include introduction, macro- and micro-economics, socio-political and economic trends, econometrics, public finances, and international financial markets
    • The guide includes lists of tables and figures relevant to the course content.

    Study Material

    • Include the study guide itself
    • Required reading and viewing materials
    • Digital assessments
    • Individual assignments

    Prescribed Resources

    • Books:
      • Parkin, M. (2019). Economics (13th ed.). Pearson International.
    • Articles: (List of articles and links provided)
    • Legislation and Government Publications: (List of legislation and government publications and links provided)
    • Multimedia: (List of videos and links provided)

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