1
UNIVERSITY EXAMINATIONS
Oct/Nov 2020
ECS3704
Public Economics
60 Marks
Duration: 2 Hours
First examiner: Prof Z Robinson
Second examiner: Mr C Leotlela
External examiner: Prof W Krugell
This paper consists of eleven (11) pages.
Instructions:
(1) Submit your answers as a single document in PDF format. It is preferable for you to type your
answers (Font: Arial 12) and then convert your document to PDF format for submission.
However, if this is not possible, you may also write your answers down and scan them to a PDF
file. Please write legibly.
(2) Start with a cover page stating the module code, ECS3704, and your student number.
(3) This should be followed by your answers to the questions. Note that all three questions are
compulsory. There are no elective questions.
(4) There is no need for a table of contents, introduction, conclusion or list of references (as was
required in your assignments). Simply answer the questions asked.
(5) Make sure that each question is clearly numbered.
(6) While you are not required to cite your sources, this does not mean that you can simply copy
information from any source. You need to answer the questions in your own words. Plagiarism
will not be tolerated and may result in disciplinary action if detected.
(7) Please ensure that you use the Invigilator app and QR code on page 2.
(8) Please ensure that your PDF document is NOT encrypted to a “secured” mode and that it is
NOT password protected as these files cannot be marked. Virus infected files will also not be
marked.
(9) Submit your answers in one PDF document by using the Assessment Info tool on myUnisa.
, 2
The Invigilator
Day of the assessment instructions:
o Please remember to keep your cell phone fully charged for the duration of the
assessment.
o Please log into The Invigilator App if you have not done so yet. You need to be
connected to the internet in order to log in.
o Scan the QR code below once the examination starts. If you encounter difficulty
with scanning of the QR code, you can also enter the QR access code as
indicated at the bottom of the QR code to start the online invigilation.
o Once the QR code is scanned, avoid any disturbances by putting your phone
on airplane mode. No internet connection is needed during the assessment.
o Keep the Invigilator app open at all times on your cell phone during the
assessment.
o You may place your cell phone next to you. Your cell phone does not need to
face you however should be close enough to hear the notifications from The
Invigilator App.
o The Invigilator App will notify you when an action is required.
o In order to receive notifications do not put your cell phone on silent mode and
ensure media volume is turned up.
o When an action is required, a notification beep will be heard, and an instruction
will be visible.
o Please take note that once the examination time is over, firstly focus on
scanning and uploading your script to your assessment platforms. Uploading
your script is time sensitive.
o Once your script is uploaded on your assessment platform, you may switch on
your data to start the uploading process on The Invigilator app.
o Good Luck!
, 3
QUESTION 1
“A potential treatment for the Coronavirus has a possible, positive externality for health”. (a) Analyse
this statement using a diagram. (b) Using the diagram in (a), explain how allocative efficiency can be
promoted using a subsidy. (c) Explain Pareto optimality in this context and use a diagram for this.[20]
QUESTION 2
In the light of the COVID-19 pandemic, which measures can be taken by government to stimulate
economic growth again. (a) Debate this in terms of government growth in South Africa throughout the
years. (b) Use macro and microeconomic models to compare the growth in government expenditure.
(c) Has government reached a fiscal cliff in terms of these
models? [20]
QUESTION 3
Analyse with the aid of diagrams an ad valorem tax levied on consumers of (a) essential goods
and (b) luxury goods. (c) The taxes on these goods tend to be progressive or regressive and
explain the
meaning. [20]
, 4
QUESTION 1
“A potential treatment for the Coronavirus has a possible, positive externality for health”. (a) Analyse
this statement using a diagram. (b) Using the diagram in (a), explain how allocative efficiency can be
promoted using a subsidy. (c) Explain Pareto optimality in this context and use a diagram for this.[20]
UNIVERSITY EXAMINATIONS
Oct/Nov 2020
ECS3704
Public Economics
60 Marks
Duration: 2 Hours
First examiner: Prof Z Robinson
Second examiner: Mr C Leotlela
External examiner: Prof W Krugell
This paper consists of eleven (11) pages.
Instructions:
(1) Submit your answers as a single document in PDF format. It is preferable for you to type your
answers (Font: Arial 12) and then convert your document to PDF format for submission.
However, if this is not possible, you may also write your answers down and scan them to a PDF
file. Please write legibly.
(2) Start with a cover page stating the module code, ECS3704, and your student number.
(3) This should be followed by your answers to the questions. Note that all three questions are
compulsory. There are no elective questions.
(4) There is no need for a table of contents, introduction, conclusion or list of references (as was
required in your assignments). Simply answer the questions asked.
(5) Make sure that each question is clearly numbered.
(6) While you are not required to cite your sources, this does not mean that you can simply copy
information from any source. You need to answer the questions in your own words. Plagiarism
will not be tolerated and may result in disciplinary action if detected.
(7) Please ensure that you use the Invigilator app and QR code on page 2.
(8) Please ensure that your PDF document is NOT encrypted to a “secured” mode and that it is
NOT password protected as these files cannot be marked. Virus infected files will also not be
marked.
(9) Submit your answers in one PDF document by using the Assessment Info tool on myUnisa.
, 2
The Invigilator
Day of the assessment instructions:
o Please remember to keep your cell phone fully charged for the duration of the
assessment.
o Please log into The Invigilator App if you have not done so yet. You need to be
connected to the internet in order to log in.
o Scan the QR code below once the examination starts. If you encounter difficulty
with scanning of the QR code, you can also enter the QR access code as
indicated at the bottom of the QR code to start the online invigilation.
o Once the QR code is scanned, avoid any disturbances by putting your phone
on airplane mode. No internet connection is needed during the assessment.
o Keep the Invigilator app open at all times on your cell phone during the
assessment.
o You may place your cell phone next to you. Your cell phone does not need to
face you however should be close enough to hear the notifications from The
Invigilator App.
o The Invigilator App will notify you when an action is required.
o In order to receive notifications do not put your cell phone on silent mode and
ensure media volume is turned up.
o When an action is required, a notification beep will be heard, and an instruction
will be visible.
o Please take note that once the examination time is over, firstly focus on
scanning and uploading your script to your assessment platforms. Uploading
your script is time sensitive.
o Once your script is uploaded on your assessment platform, you may switch on
your data to start the uploading process on The Invigilator app.
o Good Luck!
, 3
QUESTION 1
“A potential treatment for the Coronavirus has a possible, positive externality for health”. (a) Analyse
this statement using a diagram. (b) Using the diagram in (a), explain how allocative efficiency can be
promoted using a subsidy. (c) Explain Pareto optimality in this context and use a diagram for this.[20]
QUESTION 2
In the light of the COVID-19 pandemic, which measures can be taken by government to stimulate
economic growth again. (a) Debate this in terms of government growth in South Africa throughout the
years. (b) Use macro and microeconomic models to compare the growth in government expenditure.
(c) Has government reached a fiscal cliff in terms of these
models? [20]
QUESTION 3
Analyse with the aid of diagrams an ad valorem tax levied on consumers of (a) essential goods
and (b) luxury goods. (c) The taxes on these goods tend to be progressive or regressive and
explain the
meaning. [20]
, 4
QUESTION 1
“A potential treatment for the Coronavirus has a possible, positive externality for health”. (a) Analyse
this statement using a diagram. (b) Using the diagram in (a), explain how allocative efficiency can be
promoted using a subsidy. (c) Explain Pareto optimality in this context and use a diagram for this.[20]
