1
2026 – S1 – ECS2603 – ASSESSMENT 1 – Q&A
QUIZ
Assessment 1
Started on Sunday, 22 March 2026,
State Finished
Completed on Sunday, 22 March 2026,
Time taken
Marks 45.00/45.00
Grade 100.00 out of 100.00
Feedback Well done! You seem to understand the content of Learning Units 03
and 04.
Question 1
This question is based on the following data for a country:
Wages: R9 billion
Rent: R4 billion
Interest: R3 billion
Profit: R5 billion
Total sales: R17 billion
The total production is R....billion
Answer:
Feedback
When using the income method, total production is calculated as follows:
Wages: R9 billion
Plus Rent: R4 billion
Plus Interest: R3 billion
Plus Profit: R5 billion
The value of sales will not be included to calculate the GDP when the income method is used.
The correct answer is: 21
Question 2
,2
2026 – S1 – ECS2603 – ASSESSMENT 1 – Q&A
Is the following statement true or false.
(You will receive 2 marks for the correct answer and -1 mark for the incorrect answer)
Gross domestic expenditure provides a measure of the incomes earned by citizens or
permanent residents of a country, irrespective of where it is earned.
o True
o False
The statement is indeed false.
Feedback
Your answer is correct.
Gross national income provides a measure of the incomes earned by citizens or permanent
residents of a country, irrespective of where it is earned. It includes income earned by South
Africans in and from foreign countries.
Gross national income for South Africa is calculated by, firstly, adding the following to GDP:
• all profit, interest and other income earned by South Africans in foreign countries
• all wages and salaries earned by South Africans in foreign countries
Secondly, the following is subtracted:
• all profit, interest and other income earned by foreigners from investment in South
Africa
• all wages and salaries earned by foreigners in South Africa
However, gross domestic expenditure refers to the total expenditure on goods and services
produced in a country. It does not take into account who (residents or foreigners) produced
the goods and services, only where it was produced.
The correct answer is: False
Question 3
If gross domestic product increases from R4707064 million to R5942078 million what is the
absolute change in R millions in gross domestic product (GDP)?
, 3
2026 – S1 – ECS2603 – ASSESSMENT 1 – Q&A
Answer:
Feedback
The absolute change is:
new GDP - initial GDP
If the new GDP is less than the initial GDP, ie GDP decreased, the absolute change will have
a negative sign to indicate the decrease in GDP
If the new GDP is higher than the initial GDP, ie GDP increased, the absolute change will be
positive to indicate the increase in GDP, but you do not have to include the +sign.
The correct answer is: 1235014
Question 4
Imagine a simple economy where a farmer grows wheat, selling it to a miller for R100 000,
the miller then turns the wheat into flour and sells it to a baker for R150 000, and the baker
uses the flour to make bread, selling it to consumers for R268289.
The value that the baker added to the economy is Answer.
Remember that you should not include any spaces in your answer.
Feedback
To calculate the value that the baker added to the economy, we have to subtract the amount
for which the baker bough the flour from the sale price:
R268289 minus R150 000
The correct answer is: 118289
Question 5
This question is based on page S-117 of the Quarterly Bulletin, December 2021 of the South
African Reserve Bank.
Click here to find a copy of page S-117 of the Quarterly Bulletin, December 2021
2026 – S1 – ECS2603 – ASSESSMENT 1 – Q&A
QUIZ
Assessment 1
Started on Sunday, 22 March 2026,
State Finished
Completed on Sunday, 22 March 2026,
Time taken
Marks 45.00/45.00
Grade 100.00 out of 100.00
Feedback Well done! You seem to understand the content of Learning Units 03
and 04.
Question 1
This question is based on the following data for a country:
Wages: R9 billion
Rent: R4 billion
Interest: R3 billion
Profit: R5 billion
Total sales: R17 billion
The total production is R....billion
Answer:
Feedback
When using the income method, total production is calculated as follows:
Wages: R9 billion
Plus Rent: R4 billion
Plus Interest: R3 billion
Plus Profit: R5 billion
The value of sales will not be included to calculate the GDP when the income method is used.
The correct answer is: 21
Question 2
,2
2026 – S1 – ECS2603 – ASSESSMENT 1 – Q&A
Is the following statement true or false.
(You will receive 2 marks for the correct answer and -1 mark for the incorrect answer)
Gross domestic expenditure provides a measure of the incomes earned by citizens or
permanent residents of a country, irrespective of where it is earned.
o True
o False
The statement is indeed false.
Feedback
Your answer is correct.
Gross national income provides a measure of the incomes earned by citizens or permanent
residents of a country, irrespective of where it is earned. It includes income earned by South
Africans in and from foreign countries.
Gross national income for South Africa is calculated by, firstly, adding the following to GDP:
• all profit, interest and other income earned by South Africans in foreign countries
• all wages and salaries earned by South Africans in foreign countries
Secondly, the following is subtracted:
• all profit, interest and other income earned by foreigners from investment in South
Africa
• all wages and salaries earned by foreigners in South Africa
However, gross domestic expenditure refers to the total expenditure on goods and services
produced in a country. It does not take into account who (residents or foreigners) produced
the goods and services, only where it was produced.
The correct answer is: False
Question 3
If gross domestic product increases from R4707064 million to R5942078 million what is the
absolute change in R millions in gross domestic product (GDP)?
, 3
2026 – S1 – ECS2603 – ASSESSMENT 1 – Q&A
Answer:
Feedback
The absolute change is:
new GDP - initial GDP
If the new GDP is less than the initial GDP, ie GDP decreased, the absolute change will have
a negative sign to indicate the decrease in GDP
If the new GDP is higher than the initial GDP, ie GDP increased, the absolute change will be
positive to indicate the increase in GDP, but you do not have to include the +sign.
The correct answer is: 1235014
Question 4
Imagine a simple economy where a farmer grows wheat, selling it to a miller for R100 000,
the miller then turns the wheat into flour and sells it to a baker for R150 000, and the baker
uses the flour to make bread, selling it to consumers for R268289.
The value that the baker added to the economy is Answer.
Remember that you should not include any spaces in your answer.
Feedback
To calculate the value that the baker added to the economy, we have to subtract the amount
for which the baker bough the flour from the sale price:
R268289 minus R150 000
The correct answer is: 118289
Question 5
This question is based on page S-117 of the Quarterly Bulletin, December 2021 of the South
African Reserve Bank.
Click here to find a copy of page S-117 of the Quarterly Bulletin, December 2021
