Economics Paper 2 November 2018

1. Athe value of a country's exports divided by the size of its population
2. Bthe total output of an economy over a year divided by its population
3. Cthe combined income of the richest households divided by the population
4. Dthe total output of an economy over a year divided by its number of workers

1. Alife expectancy determines GNP per capita, because every extra year of life automatically adds to national output
2. Blife expectancy generally rises as GNP per capita rises, because higher incomes pay for health care, clean water and better diet
3. Clife expectancy generally falls as GNP per capita rises, because people in richer countries work far longer hours under greater stress
4. Dlife expectancy and GNP per capita move quite independently, since how long people live depends mainly on climate

1. Alife expectancy at birth
2. Bthe balance of trade in visible goods
3. Cthe annual rate of consumer price inflation
4. Dthe proportion of workers employed in agriculture

1. Athe Human Development Index is measured in United States dollars and Romania's currency was stronger
2. Bthe Human Development Index counts only literacy, so a country's income cannot raise its score
3. Cincome, education and health services were concentrated in the hands of a small part of the population
4. DSouth Africa's population was smaller than Romania's, and a smaller population lowers the index

1. Amen and women are treated equally in education, health care and income, both in law and in practice
2. Bthe population is growing faster than national income is able to support it
3. Cwomen have markedly less access to education, health care and income than men do
4. Dwomen outnumber men in the total population by a wide margin

Answer this when you sit the paper.

1. Aexpanding the education and training available to the workforce
2. Bfixing the exchange rate against a stronger foreign currency
3. Cincreasing the interest rate that banks charge on their loans
4. Draising tariffs on imported consumer goods to protect local firms

1. Atax rates fall as income rises, which encourages the rich to save a larger share
2. Bindirect taxes are abolished, so the price of imported goods falls for every household in the country
3. Cthose on higher incomes pay a larger share of income in tax, funding services used by the poor
4. Devery household pays the same amount of tax, which is cheap and simple to collect

1. Aimports of capital goods fall, so industry is starved of new machinery
2. Bthe population stops growing, so firms are unable to find labour to expand
3. Cthe tax base narrows, so government has less revenue to spend on schools and clinics
4. Dnon-renewable resources are used up faster and pollution and urban congestion increase

1. Athe use of tariffs and quotas to control the volume of goods entering a country
2. Bthe setting of maximum and minimum prices for essential goods in the shops
3. Cthe government's use of taxation and public spending to influence the level of total demand
4. Dthe central bank's management of money supply and interest rates to control inflation

1. Aa source of tax revenue for the government
2. Ba factor of production employed by firms
3. Ca measure of a country's total annual output of goods
4. Da medium of exchange between buyers and sellers

1. Aa shortage of cash in the economy that was starving firms and households of liquidity
2. Ban increase in the tariffs charged on goods imported from South Africa and its neighbours
3. Ca decision by the Common Monetary Area to widen its membership
4. Da sharp fall in the world price of South Africa's own export commodities

1. Aauditing the published accounts of listed companies
2. Bacting as lender of last resort to the commercial banks
3. Ccollecting income tax from workers and companies
4. Dsetting the minimum wage payable in each industry

1. Aaccept the loss of an independent monetary policy and hold inflation stable
2. Badopt a freely floating exchange rate against every one of the member currencies
3. Crun a permanent budget deficit in order to stimulate its own demand
4. Draise tariffs against goods coming from the other member states

1. Agreater freedom to devalue its own currency whenever its exports fall
2. Bhigher tariff revenue on the goods it buys from member countries
3. Clower transaction costs, since traders no longer convert one currency into another
4. Dthe ability to set its own interest rate independently of the partner states

1. Ait is required to run a current account surplus in every year
2. Bit gives up control of its own money supply and interest rate
3. Cit must pay a tariff on every good it sells to the partner states
4. Dits citizens are no longer able to travel freely to partner states

1. Ais decided by the commercial banks rather than by the central bank
2. Bno longer has any effect on the general level of prices in the economy
3. Ccan still be set freely without regard to conditions in the other country
4. Dmust broadly follow that of the country whose currency it is pegged to

Answer this when you sit the paper.