ECS1601 EXAM PACK
2024
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:
, lOMoARcPSD|44660598
UNIVERSITY EXAMINATIONS
May/June 2020
ECS1601
ECONOMICS 1B
100 Marks
Duration: 2 Hours 50 Minutes
EXAMINERS:
FIRST: MR MT MALATJIT
SECOND: MS CJ VAN ZYL
This paper consists of 20 pages.
Instructions:
(1) The paper comprises one section consisting of 60 questions that must all be answered and
submitted online. Each question count for 1 2/3 marks, and thus the paper carries a total of 100
marks.
(2) The answers to the examination MCQ may only be submitted online. Detailed instructions are
provided in Tutorial Letter ECS1601/103/1/2020 and/ or student guide for Full MCQ on
Assessment Info Tool v4.
(3) You will receive a special alternative (portal) link, via email, for uploading the answers. Only
use this link if you’re failing to submit with the steps provided in Tutorial Letter
ECS1601/103/1/2020 and/ or student guide for Full MCQ on Assessment Info Tool v4. The
portal will only be available after one hour of the start of the exam session and each student
has only one opportunity to access it.
(4) If you experience any problems when submitting your answers, please send an email to
and provide a Screenshot of Error Message.
, lOMoARcPSD|44660598
CONFIDENTIAL
Page 2 of 20 ECS1610
May/June 2020
1. Which of the following is/are correct regarding the distinction between macroeconomics and
microeconomics?
a) Salaries paid to Checkers employees [MICRO] is an example of a macroeconomic variable.
b) An import by Auto Spares [MICRO] of a new machine for painting cars is an
example of a microeconomic variable.
[1] only a is correct
[2] both a and b are correct
[3] only b is correct
[4] both a and b are incorrect
2. Which of the following is incorrect regarding factors of production/RESOURCES?
[1] Labour includes the efforts, abilities, and skills of people in the production of goods and
services.
[2] An entrepreneur is a risk taker in search of profits and does something new with existing
resources.
[3] A minibus taxi used by hotel to transport its guest from and to airport is an example of capital.
[4] Money is an important part of production factors, and without money, firms will not be able
to produce goods and services.
3. Which of the following is NOT a scarce production input?
[1] land available for residential housing
[2] factories that produce fabric masks
[3] money to buy tools and pay workers
[4] people available to work or start a business
4. The circular flow of income and spending reveals that an increase in South African exports will…
[1] increase spending on South African imports by more than the spending on exports.
[2] increase income to South African economy and increase income to South African producers
of goods and services.
[3] increase income to foreign firms and increase income to foreign factors of production.
[4] decrease output and income in the rest of the world.
, lOMoARcPSD|44660598
CONFIDENTIAL
Page 3 of 20 ECS1610
May/June 2020
5. Which of the following statements about stock and flow variables is/are true?
a) Interest earned is a flow variable.
b) The number of people who enter the unemployment pool is a stock variable.
[1] both a and b are correct
[2] only b is correct
[3] a is correct and b is incorrect
[4] both a and b are incorrect
6. Given the following information in the table, which option is correct?
Coins R60 000
Notes R150 000
Demand deposits R300 000
Quasi money R400 000
M3 2 000 000
Long-term deposits ?
[1] Long-term deposits are equal to R1 090 000
[2] M1 is R210 000
[3] Cash is R150 000
[4] M2 is R610 000
7. We can expect that the amount of money that a bank create will decrease when…
[1] more bank clients choose to deposit their funds at the bank.
[2] the bank's clients choose to hold a smaller part of their money in the form of cash.
[3] the bank borrows from the South African Reserve Bank.
[4] the South African Reserve Bank increases the repo rate.
Downloaded by Gabriel Musyoka ()
2024
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:
, lOMoARcPSD|44660598
UNIVERSITY EXAMINATIONS
May/June 2020
ECS1601
ECONOMICS 1B
100 Marks
Duration: 2 Hours 50 Minutes
EXAMINERS:
FIRST: MR MT MALATJIT
SECOND: MS CJ VAN ZYL
This paper consists of 20 pages.
Instructions:
(1) The paper comprises one section consisting of 60 questions that must all be answered and
submitted online. Each question count for 1 2/3 marks, and thus the paper carries a total of 100
marks.
(2) The answers to the examination MCQ may only be submitted online. Detailed instructions are
provided in Tutorial Letter ECS1601/103/1/2020 and/ or student guide for Full MCQ on
Assessment Info Tool v4.
(3) You will receive a special alternative (portal) link, via email, for uploading the answers. Only
use this link if you’re failing to submit with the steps provided in Tutorial Letter
ECS1601/103/1/2020 and/ or student guide for Full MCQ on Assessment Info Tool v4. The
portal will only be available after one hour of the start of the exam session and each student
has only one opportunity to access it.
(4) If you experience any problems when submitting your answers, please send an email to
and provide a Screenshot of Error Message.
, lOMoARcPSD|44660598
CONFIDENTIAL
Page 2 of 20 ECS1610
May/June 2020
1. Which of the following is/are correct regarding the distinction between macroeconomics and
microeconomics?
a) Salaries paid to Checkers employees [MICRO] is an example of a macroeconomic variable.
b) An import by Auto Spares [MICRO] of a new machine for painting cars is an
example of a microeconomic variable.
[1] only a is correct
[2] both a and b are correct
[3] only b is correct
[4] both a and b are incorrect
2. Which of the following is incorrect regarding factors of production/RESOURCES?
[1] Labour includes the efforts, abilities, and skills of people in the production of goods and
services.
[2] An entrepreneur is a risk taker in search of profits and does something new with existing
resources.
[3] A minibus taxi used by hotel to transport its guest from and to airport is an example of capital.
[4] Money is an important part of production factors, and without money, firms will not be able
to produce goods and services.
3. Which of the following is NOT a scarce production input?
[1] land available for residential housing
[2] factories that produce fabric masks
[3] money to buy tools and pay workers
[4] people available to work or start a business
4. The circular flow of income and spending reveals that an increase in South African exports will…
[1] increase spending on South African imports by more than the spending on exports.
[2] increase income to South African economy and increase income to South African producers
of goods and services.
[3] increase income to foreign firms and increase income to foreign factors of production.
[4] decrease output and income in the rest of the world.
, lOMoARcPSD|44660598
CONFIDENTIAL
Page 3 of 20 ECS1610
May/June 2020
5. Which of the following statements about stock and flow variables is/are true?
a) Interest earned is a flow variable.
b) The number of people who enter the unemployment pool is a stock variable.
[1] both a and b are correct
[2] only b is correct
[3] a is correct and b is incorrect
[4] both a and b are incorrect
6. Given the following information in the table, which option is correct?
Coins R60 000
Notes R150 000
Demand deposits R300 000
Quasi money R400 000
M3 2 000 000
Long-term deposits ?
[1] Long-term deposits are equal to R1 090 000
[2] M1 is R210 000
[3] Cash is R150 000
[4] M2 is R610 000
7. We can expect that the amount of money that a bank create will decrease when…
[1] more bank clients choose to deposit their funds at the bank.
[2] the bank's clients choose to hold a smaller part of their money in the form of cash.
[3] the bank borrows from the South African Reserve Bank.
[4] the South African Reserve Bank increases the repo rate.
Downloaded by Gabriel Musyoka ()
