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ENS612S-ECONOMICS OF NAMIBIAL AND SACU COUNTRIES-1ST OPP-NOV 2024 |
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nAmlBIA unlVERSITY
OF SCI En CE Ano TECH n OLOGY
FACULTY OF FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ACCOUNTING, ECONOMICS AND FINANCE
QUALIFICATION: BACHELOR OF ECONOMICS
QUALIFICATION CODE: 07BECO
COURSE CODE: ENS612S
SESSION: NOVEMBER 2024
LEVEL: 6
COURSE NAME: ECONOMICS OF NAMIBIA AND
SACU COUNTRIES
PAPER: THEORY
DURATION: 3 HOURS
MARKS: 100
FIRST OPPORTUNITY EXAMINATION PAPER
EXAMINER(S) Mr. Mally Likukela
MODERATOR: Mr Eslon Ngedeepi
INSTRUCTIONS
1. There are four (4) Questions in this paper.
2. Candidates must answer all Questions.
3. Write clearly and neatly.
4. Number the answers clearly.
PERMISSIBLE MATERIALS
1. Examination paper
2. Examination script ·
THIS QUESTION PAPER CONSISTS OF 5 PAGES [Including this front page]
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SECTION A: MULTIPLE CHOICE
[10 MARKS]
1. Brewing of alcoholic and non-alcoholic beveragesfalls under:
a) Primary Industry
b) Secondary Industry
c) Tertiary Industry
d) Namibia Brewery
2. Diamond Polishing falls under:
a) Primary Industry
b) Secondary Industry
c) Tertiary Industry
d) None of the above
3. The following is the main causes of inflation in Namibia:
a) Imported inflation
b) Excess supply of Money
c) High fuel prices
d) All of the above
4. Which of the following is not a policy for dealing with unemployment:
a) Promotion of investment
b) Education and training
c) Protection of local producers
d) Mandatory vaccination for all workers
5. The Executive Branch:
a) Interprets constitution and laws
b) Oversee and implements policies contained in legislation
c) The highest decision and policy making institution in a democratic state
d) All of the above
6. Goods that are thought to be good for someone regardless of the person's own
preferences are known as:
a) Mandatory goods
b) Merit goods
c) Normal goods
d) Inferior goods
7. Comparative advantage occurs:
a) When one country cannot produce a good or service at a lower opportunity cost than
another.
b} When one country can produce a good or service at a lower opportunity cost than another.
c) When a country is able to produce a good or service at a lower cost per unit than the cost at
which any other entity produces that good or service.
d) When a country is able to produce a good or service at a lower cost per unit than the cost at
which any other entity produces that good or service.
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8. Which of the institutions does not form part of the SADC institutions:
a) The Committee of Heads of States
b) The Council of Ministers
c) The Secretariat
d) SADC Military Council
9. Market for transaction of short-term funds:
a) Capital Markets
b) Money Markets
c) Credit Markets
d) None of the above
10. A form of Government where only a few people have power is known as:
1) Dictatorship
2) Oligarchy
3) Democracy
4) Autocracy
SECTION B: TRUE OR FALSE
[10 MARKS]
1. Namibia is a member of all regional economic groups
2. Namibia's Agricultural (livestock) sector is well known for producing and exporting high
quality species of horse mackerel, and other varieties of sea animals.
3. Diamond processing sector falls both under primary industry and secondary industry.
4. Economic integration reduces cost of trading amongst member co_untry.
5. In a free market system, Government brings buyers and sellers together.
6. The branch of government responsible for drafting, approving and amending laws is
known as the Judiciary.
7. Neighbors loud music, smoke, air pollution, contagious diseases is an example of a third
party effect- known as externality in the field of economics.
8. Companies that operates under the EPZ regime are required to pay very low corporate
tax.
9. Monetary policy is the usage of tax and public expenditures to influence macro-
economic variables.
10. Inflation is not an increase in the prices in a particular industry.
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SECTION C:
Question 1:
Define the following terms
i. Public Debt
ii. Absolute advantage
iii. Comparative advantage
iv. Privatization
V. Economic Integration
[50 Marks]
[10 Marks]
(2)
(2)
(2)
(2)
(2)
Question 2
[25 Marks]
Demonstrate how governments use macroeconomic policies to achieve its objectives.
Illustrate using appropriate examples.
Question 3:
[15 Marks]
The following attributes of corruption undermines well-functioning markets: Explain how.
1. a tax that distorts competition & lower returns
2. a barrier to new entries in market competition
3. subvert state's legitimacy
SECTION D:
[30 MARKS]
Question 1:
[15 Marks]
Study the figure below. Describe the Monetary Policy transmission mechanism for Namibia
and explain why the Bank rate Channel is the most effective channel in the mechanism.
Maintenance of
the peg
1------11
Imported innat1on
Official rate
(Repo Rate)
Market rates
Bank rate channel
Asset prices channel
t
Expectations
INFLATION
Domeshc 1nnat1on
Domes!lc demand
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Question 2:
[15 Marks]
Provide context by way of an appropriate example (or a scenario) of each of the following
advantages of Privatization.
i. Source of revenue and Reduced dependency on state resources
ii. Efficiency is improved upon
iii. Widening of ownership structure
iv. Income redistribution
v. Foreign investments are attracted
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