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The spread of COVIC-19 across all countries of the world resulted in resorting to various forms of lockdown measures. The locks down measures crippled many economies including the South African Economy. To resuscitate these economies, there is renewed interest in fiscal policy as a tool macroeconomic policy. Critically discuss the shortcomings of anti-cyclical policy?
critically discuss the effects of social grants on incomes and welfare?
critically discuss the effects of social grants on incomes and welfare?
Question 4 (25 Marks)
The South African government depends on the South African Revenues Services (SARS) for the
collection of tax revenue for the ever increasing public expenditure. COVID-19 made all government
sof the world over to resort to lockdowns to curb the spread of the disease. The lockdowns have a
direct effect of reducing business activities and hence, decrease in revenue collections. Citizens
willingness to pay tax largely depends on the perceptions the public have on the tax system,
Critically discuss any 7 requirements of a good tax system.
Differentiate between social equity and social equality and indicate which of the two is required
for improvement in social welfare in a country that has a history of inequality.
(5)
2.1. Critically discuss any three Macroeconomic and at least two Microeconomic reasons for growth
in government expenditure.
(20)
Question 3 (25 Marks)
Differentiate between private goods and public goods and then illustrate and discuss why in the
provision of private good the summation is horizontal while it is vertical in the case of the provision
of public good.
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2.1 Differentiate between social equity and social equality and indicate which of the two is required for improvement in social welfare in a country that has a history of inequality. (5)
2.1. Critically discuss any three Macroeconomic and at least two Microeconomic reasons for growth in government expenditure.
After graduation, you work as a Financial Analyst in a reputable multinational company in Kuala Lumpur. Your superior has assigned you a new task. You are required to analyse the following bonds.
Company | Petron Berhad | Shell Corporation
Coupon rate per annum | 10% | 10%
Maturity in years | 15 | 10
Face value per bond | $1,000 | $1,000
Yield to maturity per annum | 11% | 13%
Current selling price per bond | $900 | $1,100
Based on the above information, you are required to:
a) Compute the current bond prices for both companies if the interest payment is once a year.
b) Based on the above result, provide your conclusion.
c) Discuss three main differences between conventional bond and Islamic bond
After graduation, you work as a Financial Analyst in a reputable multinational company in Kuala Lumpur. Your superior has assigned you a new task. You are required to analyse the following bonds.
- Company | Petron Berhad | Shell Corporation
Coupon rate per annum | 10% | 10%
Maturity in years | 15 | 10
Face value per bond | $1,000 | $1,000
Yield to maturity per annum | 11% | 13%
Current selling price per bond | $900 | $1,100
Based on the above information, you are required to:
a) Compute the current bond prices for both companies if the interest payment is once a year.
b) Based on the above result, provide your conclusion.
c) Discuss three main differences between conventional bond and Islamic bond
Mr mdlalose starts his own business and takes out a loan of R450 000
He repays the loan in four equal annual installments starting one year after the loan was granted
Calculate his annual repayments if the interest charged on the outstanding balance is 10% p.a. compounded annually
Differentiate between private goods and public goods and then illustrate and discuss why in the provision of private good the summation is horizontal while it is vertical in the case of the provision of public good
