2026 - ECS2603 - ASSESSMENT 2 - QUESTIONS AND ANSWERS - SEMESTER 2

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2026 – S1 – ECS2603 – ASSESSMENT 2 – Q&A


QUIZ

Assessment 2
Started on Wednesday, 8 April 2026,
State Finished
Completed Wednesday, 8 April 2026,
on
Time taken 1 hour 18 mins
Marks 50.0/50.00
Grade 100.00 out of 100.00
Feedback Good work! You seem to understand most of the content of Learning
Units 05 and 06 but there is information that you have to revise. Please
read the feedback carefully to ensure you will not make similar
mistakes again.


Question 1
A business cycle only includes a peak and a trough.

• True

• False

Feedback
Your answer is correct.

A business cycle not only includes a peak and a contraction phase but also a trough and
expansion phase.

The correct answer is: False


Question 2
The following questions are based on Business cycle phases of South Africa since 1945 under
the category Key Information on page S-164 in the South African Reserve Bank Quarterly
Bulletin, December 2024. It is copied here but you can also find the information in
the Resources for Assessment 2 folder

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2026 – S1 – ECS2603 – ASSESSMENT 2 – Q&A




Based on the information, the South African economy was in a downward phase of the
business cycle in December 2024.

• True
• False
Mark 2.00 out of 2.00


The correct answer is: False
The longest downward phase of the business cycle in South Africa started in (month and

year) ____ March 1989

In January 2022 the South African economy was in a downward phase.

• True
• False
Mark -1.00 out of 2.00


The correct answer is: False
In July 2011 the South African economy was in an upward phase.

• True
Correct-the upward phase started in September 2009 and lasted until November 2013
• False

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2026 – S1 – ECS2603 – ASSESSMENT 2 – Q&A


Mark 2.00 out of 2.00


The correct answer is: True
The upward phase of the business cycle in South Africa that started in September 1999

lasted 99 months.


Question 3
A time series such as the business confidence index is regarded as a leading indicator since
the peak of the time series is reached before the peak of the reference cycle.

Select one:
• True

• False

Feedback
Your answer is correct.

The statement is true. If the turning point of an indicators occurs before the reference turning
point, the indicators is regarded as a leading indicator. If the turning point of an indicators
occurs after the reference turning point, the indicators is regarded as a lagging indicator, and
if the turning point of an indicators occurs at the same time as that of the reference turning
point, the indicators is regarded as a coincident indicator. The business confidence index is a
leading indicator.

The correct answer is: True


Question 4
According to the 1996 census, the original figure for the population of South Africa was 40,6
million.

• True

• False

Feedback
Your answer is incorrect.

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2026 – S1 – ECS2603 – ASSESSMENT 2 – Q&A


The original figure was 37,9 million and after adjustments were made, it was estimated at
40,6 million. Please refer to section 5.1 of the textbook for a discussion of the population
data.

The correct answer is: False


Question 5
The only information that is provided by the population census is the number of people in a
country.

• True

• False

Feedback
Your answer is correct.

It provides more information than just the number of people in a country. Please refer to
section 5.1 of the textbook for a discussion of the population data.



The correct answer is: False


Question 6
Calculate the labour force participation rate (one decimal and leave out the % sign) based on
the following information:

Population: 55 460 000

Population between 15 to 64 years:36501761

Labour force:23470563

Answer: 64.3
Feedback
To calculate the labour force participation rate, you have to divide the number of persons in
the labour force by the number of persons in the population between 15 and 64 years, and
multiply the answer by 100 to determine the percentage..