Started on Friday, 25 April 2025, 6:06 AM
State Finished
Completed on Friday, 25 April 2025, 6:52 AM
Time taken 45 mins 58 secs
Marks 37.00/40.00
Grade 92.50 out of 100.00
Question 1 Economics involves the study of how human beings satisfy their unlimited wants with limited resources.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question OSCAR THE TUTOR
The statement is true. This is a fundamental definition of economics. +27737560989
for FAC MAC ECS DSC TAX QMI FIN INV
BNU STA tutorials
Question 2 Wages and salaries are earned by the production factor labour.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is true. Labour (human effort) earns wages and salaries as compensation for work performed.
Question 3 Which one of the following statements is incorrect?
Complete
Mark 1.00 out Economics is concerned with scarcity
of 1.00
Economics is the study of money.
Flag
question Economics can be described as the study of choice.
Economics attempts to satisfy unlimited wants.
Economics cannot be defined as the study of money. It is concerned with the economic choices and decisions made by businesses,
government and individuals. Economics is the study of how scarce resources are allocated to satisfy wants. Because businesses,
individuals and government have unlimited wants, whereas resources are limited, we have to make choices on how to use the scarce
resources to satisfy unlimited wants.
Question 4 People in rich nations are not subject to the principle of opportunity cost.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is false. Opportunity cost applies to everyone, regardless of wealth, because resources remain limited.
Question 5 Opportunity cost is caused by limited resources.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is true. Opportunity cost exists because resources are scarce, forcing trade-offs.
Question 6 The Gariep dam is an example of a capital good.
Complete OSCAR THE TUTOR
Mark 1.00 out True
of 1.00
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV
BNU STA tutorials
, Flag False
question
The statement is true. A capital good is a good used in the production of other goods and services. The Gariep Dam serves as an input in
the production process by supplying water for agriculture, hydroelectric power generation, and industrial use. which means it functions as a
capital good.
Question 7 Economists work on the premise that
Complete
Mark 1.00 out resources are limited but wants are unlimited.
of 1.00
both resources and wants are limited.
Flag
question resources are unlimited but wants are limited.
both resources and wants are unlimited.
Economists operate on the fundamental principle (premise or assumption) of scarcity, which arises because:
Resources are limited: There is a finite supply of natural resources, labour, capital, and time available to produce goods and services.
Wants are unlimited: Human desires and needs constantly grow and evolve, often exceeding the resources available to satisfy them.
This mismatch creates the need for choices and trade-offs, which is the foundation of economics.
Question 8 The problem of scarcity arises because wants are unlimited and the resources or means to fulfil these wants are limited.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is true. Scarcity is the fundamental problem in economics: people have unlimited wants, but resources (land, labour, capital,
and entrepreneurship) are finite.
Question 9
OSCAR THE TUTOR
The study of the total output of the motorcar industry is an example of macroeconomics.
Complete
Mark 1.00 out True
+27737560989
of 1.00 for FAC MAC ECS DSC TAX QMI FIN
False
Flag INV BNU STA tutorials
question
The statement is false.
The total output of a specific industry (such as the motorcar industry) is studied in microeconomics, as it focuses on particular markets
and industries rather than the economy as a whole.
Question 10 For a particular group of 10 people, their ordering by height (shortest to tallest) is exactly the same as their ordering by weight (lightest to
Complete heaviest). Within this group of people, height and weight are
Mark 1.00 out
of 1.00
negatively correlated.
Flag
question positively correlated.
inversely related.
independent.
Explanation: Positive correlation means that as one variable increases, the other also increases. Since taller individuals also tend to be
heavier in this case, there is a positive relationship.
A negative or inverse correlation means one variable increases while the other decreases.
Question 11 In respect of the motorcar industry, microeconomics is only concerned with the output of a specific factory (e.g. the Volkswagen factory in
Complete Uitenhage).
,Mark 1.00 out
of 1.00
True
Flag False
question
The statement is false. While microeconomics does study individual firms, it also looks at entire industries, market structures, consumer
demand, and pricing strategies. Studying motorcars as the whole industry’s market behaviour also falls within microeconomics, not just a
single factory.
Question 12 Using ______ is a way of omitting extraneous details from an economic model.
Complete
Mark 1.00 out positive assumptions
of 1.00
descriptive simplifications
Flag
question normative statements
simplifying assumptions
Simplifying assumptions help focus on key relationships while ignoring unnecessary details.
Question 13 Studying the effects choices have on the individual markets within the economy is part of
Complete
Mark 1.00 out microeconomics.
of 1.00
scarcity.
Flag
question macroeconomics.
incentives.
Microeconomics focuses on individual markets, analysing how choices affect supply, demand, and pricing in specific industries or sectors.
Scarcity is a broader economic problem affecting both micro and macro levels.
Macroeconomics studies the overall economy, not specific markets.
Incentives is a concept studied in both micro and macroeconomics
Question 14 Which of the following would be a positive economic statement?
Complete
Mark 1.00 out There has been an increase in the rate of inflation.
of 1.00
Women should be paid as much as men for the same work.
Flag
question Government should be subject to the same rules as all other institutions.
Government has grown too large and should be reduced.
An increase in the inflation rate is a factual statement that can be measured.
OSCAR THE TUTOR
Question 15 Normative statements are +27737560989
Complete
for FAC MAC ECS DSC TAX QMI FIN
Mark 0.00 out subject to proof or refutation by appeal to objective evidence or data. INV BNU STA tutorials
of 1.00
prescriptive, making a statement about how the world ought to be.
Flag
question descriptive, making a claim about how the world is.
statements about the normal state of affairs.
Normative statements are prescriptive, making a statement about how the world ought to be, expressing opinions about what should
happen rather than describing facts.
, Question 16 The statement "Unemployment should be kept at or below a level of 6 percent" is
Complete
Mark 1.00 out a prediction.
of 1.00
a positive statement.
Flag
question an assumption.
a normative statement.
"Unemployment should be kept at or below a level of 6 per cent." The word "should" indicates a value judgment, which is a characteristic of
normative statements.
Question 17 Suppose that the following headlines appeared in a newspaper. Which would most clearly represent a macroeconomic issue?
Complete
Mark 1.00 out "Reserve Bank Raises Interest Rates"
of 1.00
"Motorcar Dealership to Cut Prices"
Flag
question "National Metal Workers Union to Strike April 15"
"Brazilian Coffee Bean Crop Falls by 10 Percent"
"Reserve Bank Raises Interest Rates". Interest rates are controlled by a country’s central bank and affect the entire economy, influencing
inflation, investment, and unemployment—all macroeconomic concerns.
"Motorcar Dealership to Cut Prices" refers to individual pricing decisions, "Brazilian Coffee Bean Crop Falls by 10 Percent" relates to a
specific commodity market (coffee) and "National Metal Workers Union to Strike April 15" is related to labour unions in a specific industry.
These are all microeconomic issues.
Question 18 An increase in the price of tomatoes is a macroeconomic issue.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is false. This is a microeconomic issue because it concerns the price of a specific good (tomatoes) rather than economy-
wide variables such as inflation, total production, or employment. Microeconomics studies individual markets and price changes on a
smaller scale.
Question 19 In a market system, if a particular good is produced in excess and the market experiences oversupply, what do producers take the most
Complete likely action?
Mark 1.00 out
of 1.00
Producers maintain the same production level, anticipating that demand will eventually catch up.
Flag
question Producers increase the price of the good to maximise revenue despite the surplus.
Producers call for government intervention to set minimum production levels.
The oversupply will force prices down leading to a decrease in production.
When an oversupply exists in a market economy, prices tend to drop as supply exceeds demand. In response, producers are likely to
reduce production to prevent further losses and help restore market equilibrium. This self-regulating mechanism is a key characteristic of
market economies.
Question 20 Most economic systems are mixed systems, rather than pure traditional, command or market systems.
Complete
State Finished
Completed on Friday, 25 April 2025, 6:52 AM
Time taken 45 mins 58 secs
Marks 37.00/40.00
Grade 92.50 out of 100.00
Question 1 Economics involves the study of how human beings satisfy their unlimited wants with limited resources.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question OSCAR THE TUTOR
The statement is true. This is a fundamental definition of economics. +27737560989
for FAC MAC ECS DSC TAX QMI FIN INV
BNU STA tutorials
Question 2 Wages and salaries are earned by the production factor labour.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is true. Labour (human effort) earns wages and salaries as compensation for work performed.
Question 3 Which one of the following statements is incorrect?
Complete
Mark 1.00 out Economics is concerned with scarcity
of 1.00
Economics is the study of money.
Flag
question Economics can be described as the study of choice.
Economics attempts to satisfy unlimited wants.
Economics cannot be defined as the study of money. It is concerned with the economic choices and decisions made by businesses,
government and individuals. Economics is the study of how scarce resources are allocated to satisfy wants. Because businesses,
individuals and government have unlimited wants, whereas resources are limited, we have to make choices on how to use the scarce
resources to satisfy unlimited wants.
Question 4 People in rich nations are not subject to the principle of opportunity cost.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is false. Opportunity cost applies to everyone, regardless of wealth, because resources remain limited.
Question 5 Opportunity cost is caused by limited resources.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is true. Opportunity cost exists because resources are scarce, forcing trade-offs.
Question 6 The Gariep dam is an example of a capital good.
Complete OSCAR THE TUTOR
Mark 1.00 out True
of 1.00
+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV
BNU STA tutorials
, Flag False
question
The statement is true. A capital good is a good used in the production of other goods and services. The Gariep Dam serves as an input in
the production process by supplying water for agriculture, hydroelectric power generation, and industrial use. which means it functions as a
capital good.
Question 7 Economists work on the premise that
Complete
Mark 1.00 out resources are limited but wants are unlimited.
of 1.00
both resources and wants are limited.
Flag
question resources are unlimited but wants are limited.
both resources and wants are unlimited.
Economists operate on the fundamental principle (premise or assumption) of scarcity, which arises because:
Resources are limited: There is a finite supply of natural resources, labour, capital, and time available to produce goods and services.
Wants are unlimited: Human desires and needs constantly grow and evolve, often exceeding the resources available to satisfy them.
This mismatch creates the need for choices and trade-offs, which is the foundation of economics.
Question 8 The problem of scarcity arises because wants are unlimited and the resources or means to fulfil these wants are limited.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is true. Scarcity is the fundamental problem in economics: people have unlimited wants, but resources (land, labour, capital,
and entrepreneurship) are finite.
Question 9
OSCAR THE TUTOR
The study of the total output of the motorcar industry is an example of macroeconomics.
Complete
Mark 1.00 out True
+27737560989
of 1.00 for FAC MAC ECS DSC TAX QMI FIN
False
Flag INV BNU STA tutorials
question
The statement is false.
The total output of a specific industry (such as the motorcar industry) is studied in microeconomics, as it focuses on particular markets
and industries rather than the economy as a whole.
Question 10 For a particular group of 10 people, their ordering by height (shortest to tallest) is exactly the same as their ordering by weight (lightest to
Complete heaviest). Within this group of people, height and weight are
Mark 1.00 out
of 1.00
negatively correlated.
Flag
question positively correlated.
inversely related.
independent.
Explanation: Positive correlation means that as one variable increases, the other also increases. Since taller individuals also tend to be
heavier in this case, there is a positive relationship.
A negative or inverse correlation means one variable increases while the other decreases.
Question 11 In respect of the motorcar industry, microeconomics is only concerned with the output of a specific factory (e.g. the Volkswagen factory in
Complete Uitenhage).
,Mark 1.00 out
of 1.00
True
Flag False
question
The statement is false. While microeconomics does study individual firms, it also looks at entire industries, market structures, consumer
demand, and pricing strategies. Studying motorcars as the whole industry’s market behaviour also falls within microeconomics, not just a
single factory.
Question 12 Using ______ is a way of omitting extraneous details from an economic model.
Complete
Mark 1.00 out positive assumptions
of 1.00
descriptive simplifications
Flag
question normative statements
simplifying assumptions
Simplifying assumptions help focus on key relationships while ignoring unnecessary details.
Question 13 Studying the effects choices have on the individual markets within the economy is part of
Complete
Mark 1.00 out microeconomics.
of 1.00
scarcity.
Flag
question macroeconomics.
incentives.
Microeconomics focuses on individual markets, analysing how choices affect supply, demand, and pricing in specific industries or sectors.
Scarcity is a broader economic problem affecting both micro and macro levels.
Macroeconomics studies the overall economy, not specific markets.
Incentives is a concept studied in both micro and macroeconomics
Question 14 Which of the following would be a positive economic statement?
Complete
Mark 1.00 out There has been an increase in the rate of inflation.
of 1.00
Women should be paid as much as men for the same work.
Flag
question Government should be subject to the same rules as all other institutions.
Government has grown too large and should be reduced.
An increase in the inflation rate is a factual statement that can be measured.
OSCAR THE TUTOR
Question 15 Normative statements are +27737560989
Complete
for FAC MAC ECS DSC TAX QMI FIN
Mark 0.00 out subject to proof or refutation by appeal to objective evidence or data. INV BNU STA tutorials
of 1.00
prescriptive, making a statement about how the world ought to be.
Flag
question descriptive, making a claim about how the world is.
statements about the normal state of affairs.
Normative statements are prescriptive, making a statement about how the world ought to be, expressing opinions about what should
happen rather than describing facts.
, Question 16 The statement "Unemployment should be kept at or below a level of 6 percent" is
Complete
Mark 1.00 out a prediction.
of 1.00
a positive statement.
Flag
question an assumption.
a normative statement.
"Unemployment should be kept at or below a level of 6 per cent." The word "should" indicates a value judgment, which is a characteristic of
normative statements.
Question 17 Suppose that the following headlines appeared in a newspaper. Which would most clearly represent a macroeconomic issue?
Complete
Mark 1.00 out "Reserve Bank Raises Interest Rates"
of 1.00
"Motorcar Dealership to Cut Prices"
Flag
question "National Metal Workers Union to Strike April 15"
"Brazilian Coffee Bean Crop Falls by 10 Percent"
"Reserve Bank Raises Interest Rates". Interest rates are controlled by a country’s central bank and affect the entire economy, influencing
inflation, investment, and unemployment—all macroeconomic concerns.
"Motorcar Dealership to Cut Prices" refers to individual pricing decisions, "Brazilian Coffee Bean Crop Falls by 10 Percent" relates to a
specific commodity market (coffee) and "National Metal Workers Union to Strike April 15" is related to labour unions in a specific industry.
These are all microeconomic issues.
Question 18 An increase in the price of tomatoes is a macroeconomic issue.
Complete
Mark 1.00 out True
of 1.00
False
Flag
question
The statement is false. This is a microeconomic issue because it concerns the price of a specific good (tomatoes) rather than economy-
wide variables such as inflation, total production, or employment. Microeconomics studies individual markets and price changes on a
smaller scale.
Question 19 In a market system, if a particular good is produced in excess and the market experiences oversupply, what do producers take the most
Complete likely action?
Mark 1.00 out
of 1.00
Producers maintain the same production level, anticipating that demand will eventually catch up.
Flag
question Producers increase the price of the good to maximise revenue despite the surplus.
Producers call for government intervention to set minimum production levels.
The oversupply will force prices down leading to a decrease in production.
When an oversupply exists in a market economy, prices tend to drop as supply exceeds demand. In response, producers are likely to
reduce production to prevent further losses and help restore market equilibrium. This self-regulating mechanism is a key characteristic of
market economies.
Question 20 Most economic systems are mixed systems, rather than pure traditional, command or market systems.
Complete
