ECS1601 – ASSESSMENT 1 – EXPECTED QUESTIONS AND ANSWERS – SEMESTER 1 - 2024
Assessment 1
Started on Monday, 21 August 2023,
State Finished
Completed on Monday, 21 August 2023,
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Consider the circular flow of income. Which of the following is correct?
a.
The role of the foreign sector is to only purchase goods and services in the goods
market.
b.
The government sector can only purchase goods and services in the factor market.
c.
Households purchase goods and services in the factor market.
d.
The government sector can purchase factors of production in the factor market.
Feedback
See Section 1.5 of the prescribed book.
Question 2
With reference to the circular flow of goods and services, complete the
following sentence: Suppose that Reneilwe runs a construction company,
where she uses capital and labour. After completing projects, the payment for
services will remunerate _______to ________in the ________ market.
a.
wages; capital; factor
b.
wages; entrepreneurship; factor
1
, ECS1601 – ASSESSMENT 1 – EXPECTED QUESTIONS AND ANSWERS – SEMESTER 1 - 2024
c.
interest; capital; factor
d.
wages; labour; goods
Feedback
Your answer is correct.
Factors of production are compensated for their respective factor incomes as per the
circular flow of income. See Section 1.4 of the prescribed book.
Question 3
Which one of the following statements is correct?
a.
The quality of the factors of production is insignificant; it is only the quantity that
matters.
b.
Capital as a factor of production refers to the amount of money required to produce a
good or service.
c.
The difference between capital goods and consumer goods is that the former
maintains their full value over time.
d.
The total income in the economy is equal to the total remuneration of the factors of
production.
Feedback
See pages 5 to 6 in the prescribed book.
Question 4
South Africa exports gold, diamonds and platinum to the United States (US)
and the United Kingdom (UK), generating export income from all three
commodities. Which of the following statements is correct?
(a) Export income generated from the sale of gold, diamonds and platinum abroad is
2
Assessment 1
Started on Monday, 21 August 2023,
State Finished
Completed on Monday, 21 August 2023,
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Consider the circular flow of income. Which of the following is correct?
a.
The role of the foreign sector is to only purchase goods and services in the goods
market.
b.
The government sector can only purchase goods and services in the factor market.
c.
Households purchase goods and services in the factor market.
d.
The government sector can purchase factors of production in the factor market.
Feedback
See Section 1.5 of the prescribed book.
Question 2
With reference to the circular flow of goods and services, complete the
following sentence: Suppose that Reneilwe runs a construction company,
where she uses capital and labour. After completing projects, the payment for
services will remunerate _______to ________in the ________ market.
a.
wages; capital; factor
b.
wages; entrepreneurship; factor
1
, ECS1601 – ASSESSMENT 1 – EXPECTED QUESTIONS AND ANSWERS – SEMESTER 1 - 2024
c.
interest; capital; factor
d.
wages; labour; goods
Feedback
Your answer is correct.
Factors of production are compensated for their respective factor incomes as per the
circular flow of income. See Section 1.4 of the prescribed book.
Question 3
Which one of the following statements is correct?
a.
The quality of the factors of production is insignificant; it is only the quantity that
matters.
b.
Capital as a factor of production refers to the amount of money required to produce a
good or service.
c.
The difference between capital goods and consumer goods is that the former
maintains their full value over time.
d.
The total income in the economy is equal to the total remuneration of the factors of
production.
Feedback
See pages 5 to 6 in the prescribed book.
Question 4
South Africa exports gold, diamonds and platinum to the United States (US)
and the United Kingdom (UK), generating export income from all three
commodities. Which of the following statements is correct?
(a) Export income generated from the sale of gold, diamonds and platinum abroad is
2
