Question

A TAX AS VAT WOULD GENERALLY BE VIEWED AS: A. progressive, because the consumption expenditure of the rich is greater than that of the poor. B. regressive, because low-income households spend a greater proportion of their income on goods that attract VAT. C. proportional, because the VAT rate is constant across goods that attract VAT. D. progressive, because most goods consumed by poor households are zero-rated. E. regressive, because the VAT burden increases as household income rises. 2. EQUILIBRIUM REFERS TO A SITUATION WHERE: A. the key quantities are equal. B. all the variables balance out, i.e., their sum is zero. C. all resources are fully employed. D. no participant in the process desires to change his or her behavior. E. production equals income. 3. WHICH ONE OF THE STATEMENTS IS INCORRECT? A. The City of Cape Town forms part of general government. B. Transnet forms part of the public sector. C. The City of Tshwane forms part of the public sector. D. The government of Limpopo forms part of central government. E. The Department of Labour forms part of central government. Which one of the following statements is incorrect? In a simple Keynesian model without a government and a foreign sector: A. if autonomous consumption is R30 billion, investment spending is R25 billion and the slope of the consumption function is 0.8, then the equilibrium level of income is R275 billion. B. if autonomous consumption is R65 billion, investment spending is R31 billion and the marginal propensity to consume is 0.75, then the equilibrium level of income is R128 billion. C. if investment spending is R45 billion, autonomous consumption is R5 billion and the slope of the consumption function is 0.9, then the equilibrium level of income is R500 billion. D. if autonomous consumption is R10 billion, investment spending is R20 billion and the marginal propensity to consume is 0.6, then the equilibrium level of income is R75 billion.

          A TAX AS VAT WOULD GENERALLY BE VIEWED AS:
A. progressive, because the consumption expenditure of the rich is greater than that of the poor.
B. regressive, because low-income households spend a greater proportion of their income on goods that attract VAT.
C. proportional, because the VAT rate is constant across goods that attract VAT.
D. progressive, because most goods consumed by poor households are zero-rated.
E. regressive, because the VAT burden increases as household income rises.

2. EQUILIBRIUM REFERS TO A SITUATION WHERE:
A. the key quantities are equal.
B. all the variables balance out, i.e., their sum is zero.
C. all resources are fully employed.
D. no participant in the process desires to change his or her behavior.
E. production equals income.

3. WHICH ONE OF THE STATEMENTS IS INCORRECT?
A. The City of Cape Town forms part of general government.
B. Transnet forms part of the public sector.
C. The City of Tshwane forms part of the public sector.
D. The government of Limpopo forms part of central government.
E. The Department of Labour forms part of central government.

Which one of the following statements is incorrect?

In a simple Keynesian model without a government and a foreign sector:
A. if autonomous consumption is R30 billion, investment spending is R25 billion and the slope of the consumption function is 0.8, then the equilibrium level of income is R275 billion.
B. if autonomous consumption is R65 billion, investment spending is R31 billion and the marginal propensity to consume is 0.75, then the equilibrium level of income is R128 billion.
C. if investment spending is R45 billion, autonomous consumption is R5 billion and the slope of the consumption function is 0.9, then the equilibrium level of income is R500 billion.
D. if autonomous consumption is R10 billion, investment spending is R20 billion and the marginal propensity to consume is 0.6, then the equilibrium level of income is R75 billion.

Added by Ryan R.

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