UNIVERSITY OF THE WITWATERSRAND JOHANNESBURG

SCHOOL OF ELECTRICAL & INFORMATION ENGINEERING

ENGINEERING ECONOMICS - ELEN3018 MACRO-ECONOMICS

CLASS TEST: 29th August 2012

OPEN BOOK

TIME: 1½ HOURS (90 minutes) EXAMINER: Mr. Viv Crone

ANSWER ALL QUESTIONS

QUESTION 1:

One of the most serious problems facing South Africa is the high unemployment rate. Below is a graph of the
unemployment trends over the last few years.

a. In your own words, discuss the probable causes of the high level and general shape of the
unemployment rate between January 2008 and the current date. [10 marks]
b. In your own words, discuss whether the current unemployment is South Africa is mostly structural,
frictional or cyclical. Give reasons for your answer. [5 marks]
c. Give examples of what the South African Government and Reserve Bank has done/is doing/ could do
to reduce the unemployment rate. Explain, using economics concepts, why these actions should have
the desired effect. Are these measures proving effective? Explain why or why not. [10 marks]
Marks: 25
QUESTION 2:

Assume that you have developed a software application that enables purchases on line, in shops and other
normal financial transactions (e.g. EFTs, transfer between accounts, balance queries, etc.) via any mobile
phone.
Draw up a brief marketing plan for such a business, detailing the market profile, competitive advantage and
using the 4 marketing Ps to explain how you would address the market.
[20 marks].
Marks: 20
QUESTION 3:

There are 4 recognised purposes or effects of taxation. In your own words, discuss each of these and give
examples of how they are applied in South Africa. [20 marks]
Marks: 15

Total marks: 60