ECS1601 QUESTIONS AND CORRECT
SOLUTIONS 100% ACCURATE
Which of the following is/are correct?
a) Households are confronted with unlimited
wants, but with limited resources with
which to satisfy those wants
b) The scarcity of resources necessitate
households to make choices - Correct
Answers_both a and b are correct
Which of the following is/are correct
regarding the distinction between
macroeconomics and microeconomics?
a) The price of apples at the
supermarket is an example of a
macroeconomic variable.
b) An increase in the general price
level (inflation) in the economy is an
example of a macroeconomic variable. -
Correct Answers_only b is correct
A flow variable is defined as a
variable that is measured over a period.
Which one of the following variables is
not an example of a flow variable?
,[1] National income
[2] The balance on Sibahle's savings
account
[3] Budget deficit
[4] Total production - Correct Answers_[2]
The balance on Sibahle's savings account
Which of the following is not an
acceptable intervention by the public
sector in a mixed economy?
[1] the provision of funds for public
goods such as parks and streetlights
[2] regulation of the pricing behaviour
of monopoly industries
[3] stabilisation of the economy during
periods of economic instability
[4] regulation of the price increases
that result from changes in patterns of
demand and supply in the competitive
market - Correct Answers_[4] regulation of
the price increases that result from
changes in patterns of demand and supply
in the competitive market
The factors of production in an economy
are ...
[1] households, capital, land,
entrepreneurship
,[2] government, household, firms, natural
resources
[3] natural resources (land), labour,
capital, and entrepreneurship
[4] human capital, land, natural resources,
technology - Correct Answers_[3] natural
resources (land), labour, capital, and
entrepreneurship
Which of the following are the
remuneration of the factors of production?
[1] natural resources, rent, interest,
labour
[2] rent, salaries and wages, interest,
profit
[3] households, land, profit, capital
[4] entrepreneur, firms, capital, labour -
Correct Answers_[2] rent, salaries and
wages, interest, profit
In the circular flow of income and
spending ...
[1] savings, imports, taxes are leakages,
while investment, government spending,
exports are injections.
[2] imports, taxes, investments are
leakages, while exports, investments,
government spending are injections.
, [3] savings, exports, taxes area leakages,
while imports, investments, government
spending are injections.
[4] savings, government spending, imports
are leakages, while investments, exports,
taxes are injections. - Correct Answers_[1]
savings, imports, taxes are leakages, while
investment, government spending, exports are
injections.
In the circular flow of goods and
services ...
[1] firms sell factors of production on
the goods market.
[2] goods and services offered for sale
on the goods market are purchased by
firms.
[3] households combine factors of
production and produce consumer goods and
services.
[4] households offer factors of production
in the factor market. - Correct
Answers_[4] households offer factors of
production in the factor market.
What does the letters A, B, C and D
in the figure represent?
a) A represents factors of production
b) B represents goods and services
SOLUTIONS 100% ACCURATE
Which of the following is/are correct?
a) Households are confronted with unlimited
wants, but with limited resources with
which to satisfy those wants
b) The scarcity of resources necessitate
households to make choices - Correct
Answers_both a and b are correct
Which of the following is/are correct
regarding the distinction between
macroeconomics and microeconomics?
a) The price of apples at the
supermarket is an example of a
macroeconomic variable.
b) An increase in the general price
level (inflation) in the economy is an
example of a macroeconomic variable. -
Correct Answers_only b is correct
A flow variable is defined as a
variable that is measured over a period.
Which one of the following variables is
not an example of a flow variable?
,[1] National income
[2] The balance on Sibahle's savings
account
[3] Budget deficit
[4] Total production - Correct Answers_[2]
The balance on Sibahle's savings account
Which of the following is not an
acceptable intervention by the public
sector in a mixed economy?
[1] the provision of funds for public
goods such as parks and streetlights
[2] regulation of the pricing behaviour
of monopoly industries
[3] stabilisation of the economy during
periods of economic instability
[4] regulation of the price increases
that result from changes in patterns of
demand and supply in the competitive
market - Correct Answers_[4] regulation of
the price increases that result from
changes in patterns of demand and supply
in the competitive market
The factors of production in an economy
are ...
[1] households, capital, land,
entrepreneurship
,[2] government, household, firms, natural
resources
[3] natural resources (land), labour,
capital, and entrepreneurship
[4] human capital, land, natural resources,
technology - Correct Answers_[3] natural
resources (land), labour, capital, and
entrepreneurship
Which of the following are the
remuneration of the factors of production?
[1] natural resources, rent, interest,
labour
[2] rent, salaries and wages, interest,
profit
[3] households, land, profit, capital
[4] entrepreneur, firms, capital, labour -
Correct Answers_[2] rent, salaries and
wages, interest, profit
In the circular flow of income and
spending ...
[1] savings, imports, taxes are leakages,
while investment, government spending,
exports are injections.
[2] imports, taxes, investments are
leakages, while exports, investments,
government spending are injections.
, [3] savings, exports, taxes area leakages,
while imports, investments, government
spending are injections.
[4] savings, government spending, imports
are leakages, while investments, exports,
taxes are injections. - Correct Answers_[1]
savings, imports, taxes are leakages, while
investment, government spending, exports are
injections.
In the circular flow of goods and
services ...
[1] firms sell factors of production on
the goods market.
[2] goods and services offered for sale
on the goods market are purchased by
firms.
[3] households combine factors of
production and produce consumer goods and
services.
[4] households offer factors of production
in the factor market. - Correct
Answers_[4] households offer factors of
production in the factor market.
What does the letters A, B, C and D
in the figure represent?
a) A represents factors of production
b) B represents goods and services
