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ECS1601-25-Y

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The tax and income of two South African households, A and B, are as follows:

Household A

Household B

Income (R)

5 000

1 500

PAYE (R)

1 500

200

VAT-Paid on Goods (R)

300

300

Tax Paid on Fuel (R)

800

600

According to the table, which of the following is correct?

(i) PAYE is a progressive tax,

(ii) VAT is a progressive tax.

(iii) Taxes on fuel are regressive taxes.
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Which of the following statements is/are correct criteria of the good tax?

a. Good taxation should have more possible effects of distorting relative prices.

b. It is regarded as good tax if various taxpayers with different incomes are taxed the same.

c. It is regarded as good tax if the tax burden is spread fairly among various taxpayers.

d. Administrative simplicity in the tax system ensures neutrality and equality.
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Which one of the following statements is correct regarding the national budget?
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The opportunity cost of holding money is
0%
0%
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Which of the following would be classed as a monetary policy?
0%
0%
0%
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Which of the following statements regarding financial intermediaries is/are correct?

a) Financial intermediary channel funds from surplus economic units in the form of deposit.

b) Financial intermediaries channel funds from surplus economic to deficit economic units.

c) Financial intermediaries channel funds by granting credit to economic participance.

d) Melokuhle saves a portion of his salary at his local bank. We can conclude that Melokuhle is an example of a surplus unit.
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Which one of the following is regarded as a flow variable?
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Which one of the following options is the correct facility that contributes to the stability of the financial sector of the SARB?
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Which one of the following statements is true about causality and correlation?
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Which of the following is/are correct regarding the distinction between microeconomics and macroeconomics?

a) An increase in the general price level in the economy is an example of macroeconomic variables.

b) The SARB decided to keep the repo rate unchanged at 3.5%; this is in line with expectations of most economists.

c) The price of oranges at the supermarket is an example of the microeconomic variables.

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