ASSIGNMENT 02
387492
UNIQUE NUMBER
CLOSING DATE 31 May 2021
LEARNING UNITS 5 to 7
WEIGHT FOR YEAR MARK 30% of year mark
NUMBER OF QUESTIONS 20
Please answer this assignment on the prescribed answer sheet on myUnisa or on hard copy.
Feedback on these questions will be provided on myUnisa under Additional Resources after the
final closing date for the assignment.
For Questions 2.1 to 2.5 you need to indicate whether the statement is true or false. If the statement
is true, choose [1] and if the statement is false, choose [2].
2.1 The quantity demanded of gold shares is very price elastic because the price of gold shares is
very unstable and prone to regular changes.
[1] True
[2] False
2.2 If a certain percentage change in the price of mushrooms results in a smaller percentage
change in the quantity of mushrooms demanded, we say that the demand for mushrooms is
price elastic.
[1] True
[2] False
2.3 In considering all the factors that affect the demand and the supply of oil, the determination of
the oil price is a microeconomic issue.
[1] True
[2] False
2.4 National accounts also shows government revenue and government expenditure.
[1] True
[2] False
Question 2.5 is based on the information in the following table:
Year 2015 2016 2017 2018 2019
CPI index 98,5 100 103,4 106 108,2
, 2.5 The inflation rate in 2018 was higher than the inflation rate in 2017.
[1] True
[2] False
Questions 2.6 to 2.20 are multiple-choice questions. Only one of the options [1], [2], [3], [4] or [5] is
correct. You have to choose the option that you think is correct.
2.6 The government in Country A has introduced an excise duty on all imported ski equipment.
This has resulted in a 5% increase in the price of imported ski equipment. No locally
produced ski equipment is available. SkiAway is a company that specialises in supplying ski
equipment to their customers. They have determined that this change will result in no change
in the demand for ski equipment. This implies that the demand for ski equipment is
….
[1] price elastic
[2] price inelastic
[3] perfectly price inelastic
[4] unitary price elastic
[5] perfectly price elastic
2.7 The price elasticity of demand for product X will be higher if … .
[1] it is not easy to replace product X with another product
[2] consumers have a strong affinity for product X
[3] a number of products that are close substitutes for product X are available
[4] the price of product X changes by a large amount
[5] the price of good Y, which is a complement for product X, changes by a large amount
2.8 LuxTravel has determined that a 5% decrease in the income of consumers results in a 10%
decrease in the quantity of air tickets to exotic destinations demanded. Based on this
information we can say that air tickets to exotic destinations are … .
(a) normal goods
(b) inferior goods
(c) luxury goods
(d) essential goods
[1] ad
[2] ac
[3] b
[4] c
[5] a
387492
UNIQUE NUMBER
CLOSING DATE 31 May 2021
LEARNING UNITS 5 to 7
WEIGHT FOR YEAR MARK 30% of year mark
NUMBER OF QUESTIONS 20
Please answer this assignment on the prescribed answer sheet on myUnisa or on hard copy.
Feedback on these questions will be provided on myUnisa under Additional Resources after the
final closing date for the assignment.
For Questions 2.1 to 2.5 you need to indicate whether the statement is true or false. If the statement
is true, choose [1] and if the statement is false, choose [2].
2.1 The quantity demanded of gold shares is very price elastic because the price of gold shares is
very unstable and prone to regular changes.
[1] True
[2] False
2.2 If a certain percentage change in the price of mushrooms results in a smaller percentage
change in the quantity of mushrooms demanded, we say that the demand for mushrooms is
price elastic.
[1] True
[2] False
2.3 In considering all the factors that affect the demand and the supply of oil, the determination of
the oil price is a microeconomic issue.
[1] True
[2] False
2.4 National accounts also shows government revenue and government expenditure.
[1] True
[2] False
Question 2.5 is based on the information in the following table:
Year 2015 2016 2017 2018 2019
CPI index 98,5 100 103,4 106 108,2
, 2.5 The inflation rate in 2018 was higher than the inflation rate in 2017.
[1] True
[2] False
Questions 2.6 to 2.20 are multiple-choice questions. Only one of the options [1], [2], [3], [4] or [5] is
correct. You have to choose the option that you think is correct.
2.6 The government in Country A has introduced an excise duty on all imported ski equipment.
This has resulted in a 5% increase in the price of imported ski equipment. No locally
produced ski equipment is available. SkiAway is a company that specialises in supplying ski
equipment to their customers. They have determined that this change will result in no change
in the demand for ski equipment. This implies that the demand for ski equipment is
….
[1] price elastic
[2] price inelastic
[3] perfectly price inelastic
[4] unitary price elastic
[5] perfectly price elastic
2.7 The price elasticity of demand for product X will be higher if … .
[1] it is not easy to replace product X with another product
[2] consumers have a strong affinity for product X
[3] a number of products that are close substitutes for product X are available
[4] the price of product X changes by a large amount
[5] the price of good Y, which is a complement for product X, changes by a large amount
2.8 LuxTravel has determined that a 5% decrease in the income of consumers results in a 10%
decrease in the quantity of air tickets to exotic destinations demanded. Based on this
information we can say that air tickets to exotic destinations are … .
(a) normal goods
(b) inferior goods
(c) luxury goods
(d) essential goods
[1] ad
[2] ac
[3] b
[4] c
[5] a
