List and briefly explain the three economic questions that form the foundations of the discipline.

• Plagiarism is a serious offence. Do not copy directly from any text unless absolutely necessary. Enclose quotes in inverted commas to indicate that they are not your words, and include an intext reference with each quote. Paraphrase all the reference comments that you use and include appropriate reference and page numbers.
• Use the in-text referencing method prescribed by Regenesys under guidelines and policies on the student portal. Consult the referencing mark allocation guide for the minimum number of references needed for this assignment.
• Full referencing of all sources, including page numbers in in-text referencing, is essential. For example: (Gitman, 2010:15) in text, and then in your reference list:
Gitman, L.J. 2010, Principles of Managerial Finance, Cape Town: Pearson Education.
• Extensive and credible academic references are required to demonstrate that you have researched the topics fully and so that you can substantiate your arguments critically.
NOTE: At postgraduate level, you are expected to substantiate your answers with evidence from independent research.
You may work on this assignment in a group BUT you must write the assignment individually, and in your own words. If NOT, you will be told you have copied and you will have to do a brand new assignment. The mark will be capped at 60%, and you will have to pay a resubmission fee.
INTRODUCTION TO THE ASSIGNMENT
• This assignment consists of FOUR questions.
• Please answer all of the questions.
•
Good luck!
ASSIGNMENT QUESTIONS
QUESTION 1 (20 MARKS)
1.1 List and briefly explain the three economic questions that form the foundations of the (14) discipline.
1.2 Consider the population of LaLa-Land. In 2018, the country had a total population of (06) 30-million, 10-million of whom were older than 64 years old and younger than 16 years old (the minimum working age) while 9-million, mostly housewives and students, did not want to work. A total of 8-million of the population between 16 years old and 64 years old who wanted to work were employed while the rest remained unemployed. Based on this information answer the following questions:
a) What is the size of the labour force or economically active population?
b) What is the labour force participation rate?
c) How many people are unemployed?
d) What is the unemployment rate?
Bear in mind this question will require you to read and research further than the content given to you in the study materials provided.
QUESTION 2 [20 MARKS]
2.1 Consider the rand/dollar exchange rate. Assuming that the exchange rate is currently (14) quoted as R11.50 to the US dollar answer the following questions:
a) How many US cents would be required to buy R1.00? (2)
b) If you bought an economic textbook for $45 over the internet, how much (3) would you have to pay in Rands?
c) If the exchange rate were to change to R11.80 to the dollar, which currency
has appreciated and which has depreciated? (2)
d) How much will the textbook priced at $45 cost you now in terms of the South (3)
African Rand?
e) Explain how a change in the exchange rate results in “winners” and “losers”. (4)
Bear in mind this question will require you to read and research further than the content given to you in the study materials provided.
2.2 Before receiving the textbook you have ordered, you are contacted by the courier (06) company who informs you that in addition to the price that you paid for the item and its delivery you are now compelled to pay an additional R200 before it can be released by customs officials. What is this R200 known as in economics and how will it impact future international purchases you make?
QUESTION 3 [25 MARKS]
3.1 Discuss the difference between frictional and cyclical unemployment. Please make (13) use of examples in your response.
3.2 Critically discuss GDP as an economic indicator and its strengths and weaknesses.