1.22 Which of the following explains why redistribution occurs during inflation?a) Rising prices fail to signal desirable changes in the mix of output.b) Because all prices do not change at the same rate, people buy different combinations of goods andservices and own different combinations of wealth.c) Relative prices remain unchanged.d) All loans are indexed to inflation.1.23 The inflation rate is the...a) Monthly percentage rate increase in the price of all goods and services.b) Annual percentage rate increase in tax brackets.c) Annual percentage rate increase in the average price level.d) Monthly adjustment of wages to the cost of living.1.24 Read the following and answer question 1.24-1.25."Exit tax' to hit South Africans looking to emigrate from 2022When ceasing their South African tax residency, taxpayers are subject to an 'exit tax' which forms part of theemigration process.However, the National Treasury has proposed a further tax on those who intend to permanently leave SouthAfrican shores, say tax experts at specialist advisory firm Tax Consulting SA."In the National Treasury's latest published Draft Tax Bills, which incorporates the tax proposals made in the2021 budget, the amendment proposes to tax retirement fund interests of individuals when they cease SouthAfrican tax residency," the firm said.If enforced, the above proposed "Exit tax" will impact which of the following national totals when South Africansmigrate as opposed to there being no exit tax?a) Gross domestic productb) Gross national productc) Net domestic productd) The budget1.25 Suppose that currently, the South African economy is in an expansionary phase. The proposed "Exit tax" bythe National Treasury would resemble which of the following macroeconomic schools of thought?a) Keynesian theoryb) Classical theoristsc) Marxist economicsd) Monetarist economics

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1.22 Which of the following explains why redistribution occurs during inflation? a) Rising prices fail to signal desirable changes in the mix of output. b) Because all prices do not change at the same rate, people buy different combinations of goods and services and own different combinations of wealth. c) Relative prices remain unchanged. d) All loans are indexed to inflation.

1.22 Which of the following explains why redistribution occurs during inflation? a) Rising prices fail to signal desirable changes in the mix of output. b) Because all prices do not change at the same rate, people buy different combinations of goods and services and own different combinations of wealth. c) Relative prices remain unchanged. d) All loans are indexed to inflation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3b
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