Exampromax - Stuvia US 2025/2026
1
ECS1601 Questions and Answers and Graded
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 Answer
both a and b are correct
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Exampromax - Stuvia US
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 Answer
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
, Exampromax - Stuvia US 2025/2026
2
[3] Budget deficit
[4] Total production
Correct Answer
[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
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Exampromax - Stuvia US
[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 Answer
[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
, Exampromax - Stuvia US 2025/2026
3
Correct Answer
[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
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Exampromax - Stuvia US
[4] entrepreneur, firms, capital, labour
Correct Answer
[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 Answer
, Exampromax - Stuvia US 2025/2026
4
[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
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and services.
Exampromax - Stuvia US
[4] households offer factors of production in the factor market.
Correct Answer
[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
c) C represents foreign sector
d) D represents spending by firm
[1] only a is correct
[2] only b and c are correct
1
ECS1601 Questions and Answers and Graded
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 Answer
both a and b are correct
© 2025 Assignment Expert
Exampromax - Stuvia US
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 Answer
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
, Exampromax - Stuvia US 2025/2026
2
[3] Budget deficit
[4] Total production
Correct Answer
[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
© 2025 Assignment Expert
Exampromax - Stuvia US
[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 Answer
[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
, Exampromax - Stuvia US 2025/2026
3
Correct Answer
[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
© 2025 Assignment Expert
Exampromax - Stuvia US
[4] entrepreneur, firms, capital, labour
Correct Answer
[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 Answer
, Exampromax - Stuvia US 2025/2026
4
[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
© 2025 Assignment Expert
and services.
Exampromax - Stuvia US
[4] households offer factors of production in the factor market.
Correct Answer
[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
c) C represents foreign sector
d) D represents spending by firm
[1] only a is correct
[2] only b and c are correct
