Question

economics

(20 Marks) ESTION 2 en the economic concepts given in COLUMN A with its description in COLUMN B. Write down the question number the correct letter next to it. E.g. 2.11 A COLUMNA Budget deficit Direct tax Currency Appreciation Comparative Advantage Labour Force Progressive tax COLUMN B The ratio between the change in consumption and the change in income. Levied on transactions and are usually paid by those who consume the goods and services in question. This is the expenditure incurred by firms on capital goods as to enhance their future productive capacity. The total number of workers including both the employed and the unemployed. Levied on persons, more specifically the income or wealth of individuals and organisations such as companies An increase in the value or price of one currency in terms of another currency. A scenario where government spending is higher than current government revenue. Countries will benefit from trade if the opportunity cost of production (or relative prices) differs between the two countries. A situation when quantity of labour supplied exceeds the quantity of labour demanded. The ratio of tax paid to taxable income increases as taxable income increases. This is the continuous and considerable increase in the general level of prices. This refers to the decrease of a given currency's value in terms of the other. Indirect tax Capital formation Marginal propensity to consume Inflation The ratio between tax paid and taxable income decreases as taxable income increases. TION B Jer ANY THRFF (3questione in this

Answer 1

ANSWER:

1. BUDGET DEFICIT: A scenario where government spending is higher than current government revenue.

2.DIRECT TAX: Levied on persons, more specifically the income or wealth of individuals and organisations such as companies.

3.CURRENCY APPRECIATION: An increase in the value or price of one currency in terms of another currency.

4.COMPARATIVE ADVANTAGE:Countries will benefit from trade if the opportunity cost of production (or relative prices) differs between the two countries.

5.LABOUR FORCE: The total number of workers including both the employed and the unemployed.

6.PROGRESSIVE TAX:The ratio of tax paid to taxable income increases as taxable income increases.

7.INDIRECT TAX:Levied on transactions and are usually paid by those who consume the goods and services in question.

8.CAPITAL FORMATION:This is the expenditure incurred by firms on capital goods as to enhance their future productive capacity.

9.MARGINAL PROPENSITY TO CONSUME:The ratio between the change in consumption and the change in income.

10.INFLATION: This is the continuous and considerable increase in the general level of prices.