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PBEC6212Ea

The document outlines the examination details for the Public Economics module (PBEC6212), including instructions, assessment type, total marks, and time allocation. It consists of various questions covering key concepts in public economics, such as definitions, economic models, market failures, and income security systems at different life stages. The exam requires independent work, adherence to specific guidelines, and the completion of all questions within the allocated time.

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thandodlamini5556
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1 views4 pages

PBEC6212Ea

The document outlines the examination details for the Public Economics module (PBEC6212), including instructions, assessment type, total marks, and time allocation. It consists of various questions covering key concepts in public economics, such as definitions, economic models, market failures, and income security systems at different life stages. The exam requires independent work, adherence to specific guidelines, and the completion of all questions within the allocated time.

Uploaded by

thandodlamini5556
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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22; 23; 24 2024

MODULE NAME: MODULE CODE:


PUBLIC ECONOMICS PBEC6212

ASSESSMENT TYPE: EXAMINATION (PAPER ONLY)


TOTAL MARK ALLOCATION: 120 MARKS
TOTAL HOURS: 2 HOURS (+10 minutes reading time)
INSTRUCTIONS:
1. Please adhere to all instructions in the assessment booklet.
2. Independent work is required.
3. Ten minutes is dedicated to reading time before the start of the assessment. You may make
notes on your question paper, but not in your answer sheet. Calculators may not be used
during reading time.
4. You may not leave the assessment venue during reading time, or during the first hour or during
the last 15 minutes of the assessment.
5. Ensure that your name is on all pieces of paper or books that you will be submitting. Submit all
the pages of this assessment’s question paper as well as your answer script.
6. Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set question of this assessment.
7. Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1. This is a CLOSED BOOK assessment.
2. Calculators are allowed.
3. You are required to answer all questions.

© The Independent Institute of Education (Pty) Ltd 2024


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22; 23; 24 2024

Question 1 (Marks: 10)

Define the following public economics terms.


Q.1.1 Developmental state (2)

Q.1.2 Mechanistic view (2)

Q.1.3 Privatisation (2)

Q.1.4 Transfer payments (2)

Q.1.5 Internal balance (2)

Question 2 (Marks: 20)

Question 2 contains short to medium questions from LU1 – 3. For five-mark questions, your answer
should be a maximum of two paragraphs and not more than a page for a 10-mark question.
Q.2.1 Identify the critical assumptions of the benchmark model. (10)

Q.2.2 Technological externalities and pecuniary externalities represent spillover effects


(5)
that impact society similarly. Is this statement correct? Support your choice.

Q.2.3 Explain the effects of the constitution on government expenditure in South


(5)
Africa.

© The Independent Institute of Education (Pty) Ltd 2024


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22; 23; 24 2024

Question 3 (Marks: 25)


Q.3.1 Given the scrambled public economic terms below, select the correct words and (15)
complete the following table. Some of the terms can be used more than once.

Lack of information; friction and lags; incomplete market; distributive;


stabilisation; allocative; government spending; non‐competitive market;
distribution of income; taxation; regulation; non‐competitive market; distribution
of income
Cause of market failure Nature of government Fiscal Instruments used
Intervention
‐ ‐ ‐
‐ ‐ ‐
‐ ‐ ‐
‐ ‐ ‐
‐ ‐ ‐

Q.3.2 Distinguish between the Pareto criterion and the Bergson criterion regarding the (10)
maximisation of social welfare.

Question 4 (Marks: 15)

Q.4.1 Sketch a well-labelled production possibility curve (PPC) and distinguish between the (10)
following economic terms:
• Dynamic efficiency
• Technical efficiency
• Allocative efficiency
(Hint: two marks for the graph and eight marks for distinguishing the terms.)

Q.4.2 Suppose you are given the following information on the overall equilibrium of the
benchmark model: (5)
Given that:
MCy = 100
PX = 70
PY = 80
Required: Compute 𝑀𝑀CX and MRPTXY at the equilibrium point.

© The Independent Institute of Education (Pty) Ltd 2024


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22; 23; 24 2024

Question 5 (Marks: 10)

Read the extract below and answer the question that follows.

'A national land reform programme is the central and driving force of a programme of rural
development... This programme must be demand-driven and must aim to supply residential and
productive land to the poorest section of the rural population and aspirant farmers.
As part of a comprehensive rural development policy, it must raise rural incomes and productivity,
and must encourage the use of land for agricultural, other productive or residential purposes. '
Adapted from:
https://www.parliament.gov.za/storage/app/media/Pages/2017/october/High_Level_Panel/Commi
ssioned_ Report land/Commissioned_ Report_on_Land_Redistribution_Kepe_and_Hall.pdf [Date of
access: 03 October 2024]

Based on the extract above, how applicable is Nozick's entitlement theory to the land redistribution
issue in South Africa? Discuss.

Question 6 (Marks: 10)

Q.6.1 Discuss why it is difficult for the private market to supply public goods. (5)

Q.6.2 According to the Keynesian school of thought, the government has an important (5)
stabilisation function in the economy. What points would you use to disagree with
this statement?

Question 7 (Marks: 30)


Discuss the coverage of income security system in the following major life stages in South
Africa:
Q.7.1 At the childhood stage. (10)

Q.7.2 At the working age. (10)

Q.7.3 At the old age. (10)


END OF PAPER

© The Independent Institute of Education (Pty) Ltd 2024


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