ECS 1601 - ECONOMICS 1B - 2019 EXAM PACK

EXAM QUESTION PAPERS AND SOLUTIONS FOR THE PAST 5 YEARS FROM JUNE 2013 TO NOVEMBER 2018 EXAM SOLUTIONS Downloaded by: Nompilombuyazi | Distribution of this document is illegal S - The study-notes marketplace 1 MEMORANDUM ECS1601 Oct 2018 SECTION A [50 marks] QUESTION 1 (9) 1.1 Name the main instruments of fiscal policy. (3) Government spending√√ Taxation√ (2 marks for first instrument, 1 mark for second instrument) 1.2 Name four main functions of the South African Reserve Bank. (4) Formulation and implementation of monetary policy√ Service to the government (or if they describe any such service) √ • Banker and advisor to government • Custodian of gold and foreign exhange reserves • Administration of exchange control Provision of economic and statistical services√ Maintaining financial stability (or a description of any of the areas) √ • Bank supervision • Oversee the National Payment system (NPS) • Banker to other banks / clearing bank / lender-of-last resort • Issue and distribute banknotes and coins 1.3 Define the balance of payments. (2) Record of transations between a country and other countries√ within a given period of time√. QUESTION 2 (11) 2.1 (a) Draw a Lorenz curve depicting a skewed income distribution