ECS1601 EXAM PACK 2025 - DETAILED QUESTIONS AND ANSWERS

, ECS1601 PAST
EXAMINATION
QUESTION PAPER
AND MCQ
Economics IB (University of South Africa)

, ANSWERS TO THE REVIEW QUESTIONS


STUDY UNIT 1 (CH 3) REVIEW QUESTIONS


Multiple Choice Questions:


1.1 Which of the following statements are correct?

a. A flow variable is measured over a specific period.
b. Wealth, assets, liabilities and profit are all stock variables.
c. Stocks can change as a result of flows.

[1] All the statements are correct.
[2] a and b
[3] a and c
[4] b and c
[5] a


1.2 Which one of the following statements explains the difference between stocks and
flows?

[1] Stocks have a time dimension and flows are measured at a point in time.
[2] There is no clear difference between stocks and flows.
[3] Flows have a time dimension and stocks are measured at a point in time.


1.3 In the circular flow of income and spending

[1] investment results in a decrease in the volume of the income flow.
[2] taxes result in an increase in the volume of the income flow.
[3] imports result in an increase in the volume of the income flow.
[4] savings result in a decrease in the volume of the income flow.