Finance Answers

3 (25 Marks)

The governments of the world are grappling with Covid 19 pandemic, several measures are being 

implemented, namely, sanitizing, social distancing, hand-washing, working from home or online and 

various forms of Lockdowns. The hope of all nations is to vaccinate at least 70% of the population to 

reach head-immunity. This is based on Scientific advice, that once that population percentage is 

immunized, the whole population would be protected, Economist call this positive externality in 

consumption. With suitable diagrams, illustrate and discuss the phenomenon highlighted above.

As a result of imbalance in revenue generation by provincial governments and local municipalities in 

South Africa, intergovernmental grants have been a important source of finance for Local 

Governments. The allocations of these funds for use in the local authorities have been questionable, 

some doubting if the funds are use for what they were earmarked for. Critically discuss, with the aid

of diagrams the conditional no -matching grants with unconditional nonmatching grant (25 marks)

Question 1 (25 Marks)

1.1 Differentiate between fiscal policy and monetary policy.

(5)

1.2 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

Question 2 (25 Marks

Define social security, critically discuss the effects of social grants on incomes and welfare

As a result of imbalance in revenue generation by provincial governments and local municipalities in South Africa, intergovernmental grants have been a important source of finance for Local Governments. The allocations of these funds for use in the local authorities have been questionable, some doubting if the funds are use for what they were earmarked for. Critically discuss, with the aid of diagrams the conditional no -matching grants with unconditional nonmatching grant?

The governments of the world are grappling with Covid 19 pandemic, several measures are being implemented, namely, sanitizing, social distancing, hand-washing, working from home or online and various forms of Lockdowns. The hope of all nations is to vaccinate at least 70% of the population to reach head-immunity. This is based on Scientific advice, that once that population percentage is immunized, the whole population would be protected, Economist call this positive externality in consumption. With suitable diagrams, illustrate and discuss the phenomenon highlighted above.

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?