Choose the most appropriate answer. Write down the letter that represents the correct answer next to each number in your online answer booklet. E.g. 26 B 1.1 Double counting can be avoided when computing GDP by: (4 marks) aj simply deducting a double-counting factor from the GDP estimates. bj adding the value of only the intermediate (non-final) goods and services produced. c) adding only the value contributed by firms at each stage of production. dj including the value of all output produced in the economy. 1.2 Which of the following conditions would not be studied by the macroeconomist? (4 marks) a) The level of national unemployment during 1988 bj The effect of government economic policy on the inflation rate during 1987. c) The effect of changing petroleum prices on the demand for coal. d) The effect of lower income taxes on the rate of economic growth. 1.3 Read the following extract and answer questions 1.3 - 1.5. 'Illegal car imports cost the taxman as much as R8bn Kia MD Gary Scott says about 55,000 of the illegal imports slip into SA every year, more than the number of new vehicles sold every month An estimated 440,000 illegally imported, used cars are travelling regularly on SA roads, costing the exchequer up to Robn in lost taxes and posing a major risk to road safety, Kia SA MD Gary Scott said on Tuesday. He blamed slack regulations for the fact that about 55,000 "grey" imports, as they are known, slip into SA each year. That's more than the number of new vehicles sold every month..." The problem being illustrated in the above extract regarding the use of gross domestic product as a measure of economic performance is... (4 marks) ) Data revision bj Economic welfare c) Unrecorded activity dj Non-market production 1.4 The reason that illegally imported used cars are not accounted for in the measure of GDP is because they violate which element of GDP? (4 marks) a) Market value Final goods and services. c) Economy. d) Specific time period