lOMoARcPSD|10935195
ECS1500 - Exam Pack - Revision (Q and A)
Economics (University of South Africa)
StuDocu is not sponsored or endorsed by any college or university
Downloaded by Abdra Sree ()
, lOMoARcPSD|10935195
ECS1500 – Exam Pack (Revision / Q & A) Email:
ECS1500
Please note: All answers to the questions is
provided at the end of each section.
To test if you are ready for the examination please give
yourself time to complete each section (A-C) of the test and
do not refer back to the study material. (Do this section for
section)
Use the answers at the end of every section to evaluate
your performance to decide if you are ready for the exams
and what section you need to focus on more.
1
Downloaded by Abdra Sree ()
, lOMoARcPSD|10935195
ECS1500 – Exam Pack (Revision / Q & A) Email:
Multiple Choice Questions (Section A):
(A)
1. A normal good is one for which the income elasticity is greater than one.
a. True
b. False
2. The demand for a good, perceived by the consumer to be a necessity, will tend to be elastic.
a. True
b. False
3. Macroeconomics is concerned with the study of how households and firms make decisions and how
they interact in specific markets
a. True
b. False
4. Price and quantity demanded for most goods are positively related
a. True
b. False
5. If three variables are related, one of them must be held constant when plotting the other two in the
by-coordinate system
a. True
b. False
6. A 50% increase in price, which results in a 90% decrease in the quantity demanded, indicates that
demand is elastic in this price range
a. True
b. False
7. Absolute advantage is a comparison based on productivity
a. True
b. False
2
Downloaded by Abdra Sree ()
, lOMoARcPSD|10935195
ECS1500 – Exam Pack (Revision / Q & A) Email:
8. A decrease m the price of soft drinks will increase their demand (will shrift the curve to the right).
a. True
b. False
9. If pizza and hamburgers are substitutes, a decrease in the price of pizza would increase the demand
for hamburgers.
a. True
b. False
10. Voluntary unemployment occurs when individuals choose not to be employed because they are not
willing to work for the current wage rate.
a. True
b. False
11. Cyclical unemployment is the result of a downturn in economic activity.
a. True
b. False
12. An increase in the price level is the same as a decrease in the value of money.
a. True
b. False
13. If the nominal interest rate is 7% and the inflation rate is 5%, the real interest rate is 12%.
a. True
b. False
14. A changes in prices of a good indicate that the market for that good is in equilibrium.
a. True
b. False
15. The impact lag is shorter for monetary policy than for fiscal policy.
a. True
b. False
3
Downloaded by Abdra Sree ()
ECS1500 - Exam Pack - Revision (Q and A)
Economics (University of South Africa)
StuDocu is not sponsored or endorsed by any college or university
Downloaded by Abdra Sree ()
, lOMoARcPSD|10935195
ECS1500 – Exam Pack (Revision / Q & A) Email:
ECS1500
Please note: All answers to the questions is
provided at the end of each section.
To test if you are ready for the examination please give
yourself time to complete each section (A-C) of the test and
do not refer back to the study material. (Do this section for
section)
Use the answers at the end of every section to evaluate
your performance to decide if you are ready for the exams
and what section you need to focus on more.
1
Downloaded by Abdra Sree ()
, lOMoARcPSD|10935195
ECS1500 – Exam Pack (Revision / Q & A) Email:
Multiple Choice Questions (Section A):
(A)
1. A normal good is one for which the income elasticity is greater than one.
a. True
b. False
2. The demand for a good, perceived by the consumer to be a necessity, will tend to be elastic.
a. True
b. False
3. Macroeconomics is concerned with the study of how households and firms make decisions and how
they interact in specific markets
a. True
b. False
4. Price and quantity demanded for most goods are positively related
a. True
b. False
5. If three variables are related, one of them must be held constant when plotting the other two in the
by-coordinate system
a. True
b. False
6. A 50% increase in price, which results in a 90% decrease in the quantity demanded, indicates that
demand is elastic in this price range
a. True
b. False
7. Absolute advantage is a comparison based on productivity
a. True
b. False
2
Downloaded by Abdra Sree ()
, lOMoARcPSD|10935195
ECS1500 – Exam Pack (Revision / Q & A) Email:
8. A decrease m the price of soft drinks will increase their demand (will shrift the curve to the right).
a. True
b. False
9. If pizza and hamburgers are substitutes, a decrease in the price of pizza would increase the demand
for hamburgers.
a. True
b. False
10. Voluntary unemployment occurs when individuals choose not to be employed because they are not
willing to work for the current wage rate.
a. True
b. False
11. Cyclical unemployment is the result of a downturn in economic activity.
a. True
b. False
12. An increase in the price level is the same as a decrease in the value of money.
a. True
b. False
13. If the nominal interest rate is 7% and the inflation rate is 5%, the real interest rate is 12%.
a. True
b. False
14. A changes in prices of a good indicate that the market for that good is in equilibrium.
a. True
b. False
15. The impact lag is shorter for monetary policy than for fiscal policy.
a. True
b. False
3
Downloaded by Abdra Sree ()
