PBA4801

EDPPJMX MAY/JUNE 2019

ECONOMICS FOR MANAGERS
STRATEGIC PROJECT MANAGEMENT

EXAMINERS:
FIRST:
EXAMINERS: DR B MUCHARA
SECOND:
FIRST: PROF CNPROF
MBATHA
PMD RWELAMILA
EXTERNAL:
SECOND: DR S NYASHA
MR RD HINDLE

INSTRUCTIONS TO CANDIDATES:

• Please note that the SBL maintains a zero-tolerance stance on plagiarism.

Plagiarism carries a severe penalty and disciplinary action. Please refer to the
following policy:
http://www.unisa.ac.za/contents/colleges/col_grad_studies/docs/Policy_copyrigh
t_infringement_plagiarism_16November2005.pdf

• IMPORTANT: Read further instructions on plagiarism on Page 1.

• This is an individual assignment and you may not compile or submit the assignment as
a group.

• Please submit your assignment on or before 10 MAY 2019 – no extension will be

granted.

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PBA4801
MAY/JUNE 2019 PORTFOLIO EXAMINATION

PLAGIARISM
The following will amount to plagiarism:

• If you fail to acknowledge the author where phrases or passages are taken verbatim
(word-for-word) from a published or unpublished text.
• If you use a summary of a work that contains the ideas of others and present the essence
of an argument in language that condenses and compresses the original language of
the source without acknowledging the author of the work.
• If you use the patch-writing (cut-and-paste) method, where pieces of other persons’
works, including those taken from the internet, are blended with your own words and
phrases without acknowledging the author of the source work.
• If you copy a significant portion of the assignment (more than 25%) from other sources
even when the authors are acknowledged.

Work must be submitted with the following declaration:

DECLARATION OF OWN WORK

I, ……………………………………………….. (name and surname), student number

…………………. confirm that:

• this assignment is my own original ideas and work;

• those ideas or work that are not my own have been cited through the prescribed
referencing system;
• I am aware that plagiarism is punishable in terms of the Copyright Act (Act 98 of 1978)
and that I have read the regulations of the University of South Africa in this respect,
online available on:

http://www.unisa.ac.za/contents/colleges/col_grad_studies/docs/Policy_copyright_infri
ngement_plagiarism_16November2005.pdf

NAME

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DATE

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WITNESS

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PBA4801
MAY/JUNE 2019 PORTFOLIO EXAMINATION

SECTION A: MICROECONOMICS [50 MARKS]

QUESTION 1 (25 MARKS)

Choose a recent article (published after January 2019) from any newspaper or online media
with relevance to microeconomics. Write an essay analysing any single issue discussed in the
article. Address the issue with the aid of a relevant theory or theories. Please attach a
photocopy of the article as an appendix of your essay. Answers without the article will not
be assessed.

Maximum length excluding article: 3 A4 pages, 1.5 spacing, 12-pt Arial font (pages beyond the
limit will not be marked).

Mark allocation:

a) Identification of article, summarising the article and identifying the main microeconomic
issue discussed in the report/article. (5)

b) Identification and description of the market structure in which the business operates.
Justify your selection with relevant examples drawn from the sector? (10)

c) Discuss the relevant microeconomic theory which can enhance the understanding of the
issue outlined in the article (report) and how business can apply such theories to improve
the business performance. (10)

QUESTION 2 (25 MARKS)

a) The government introduced a new sin tax on cigarettes. As a senior manager, use relevant
diagrams to explain to a new board of directors, the possible burden on consumers and
producers that might arise as a result of a new sin tax. Advise the board how the company
can maximise profits under the new tax regulation. (5)

b) Your company is a big retail shop that specialises in groceries operating in South Africa.
As one of the players, you do not believe that the industry players are fairly conducting

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PBA4801
MAY/JUNE 2019 PORTFOLIO EXAMINATION

themselves despite the argument from the competition tribunal and parliament that the
sector is competitive and is operating freely and fairly. Using relevant examples and your
knowledge of market structures, write a critique of the theory of perfect competition and
reasons why this market structure might not exist in the real world. (20)

SECTION B: MACROECONOMICS [50 MARKS]

QUESTION 3 (25 MARKS)

As a business analyst, you have been tasked to present some insights into the impact of
macroeconomic variables on business performance at a business forum. Using relevant
examples from an organisation or sector of your choice, discuss how the following
macroeconomic variables affect the growth and/or decline of businesses:
a) A fluctuation in interest rate (5)
b) High government spending (5)
c) High unemployment rate (5)
d) High inflation (5)
e) Changes in GDP (5)

QUESTION 4 (25 MARKS)

Suppose that firms become very optimistic about future business conditions and invest heavily
in new capital equipment.
a) Use Aggregate Demand/Aggregate Supply diagram to show the short-run effect of this
optimism on the economy. Label the new levels of prices and real output and explain why
the aggregate quantity of output supplied changes. (15)
(Max 1 page)

b) How might the investment boom affect the long-run aggregate supply curve? (10)
(Max -1 page)

©
UNISA 2019

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