ECS1500
ECS1500 ASSIGNMENT SOLUTIONS
SEMESTER 2 2020
ECS1500
ASSIGNMENT 1
SOLUTIONS
SEMESTER 2 2020
, ECS 1500 ASSIGNMENT 1
SEMESTER 2:2020
UNIQUE ASSIGNMENT NUMBER: 541600
11 Free public health facilities in South Africa are an example of non-scarce services.
[1] True
[2] False
2 -Answer- False scarcity of commodity is refers to the limitation of resources given the
needs and wants of economic agents that are unlimited. Scarcity of commodities is not
defined by who provides it (being provided by the government or private sector)
1.12 When the government decides to increase the budget for higher learning by
decreasing the budget for the provision of roads and transport, the government is facing
the "how to produce" trade-off.
[1] True
[2] False
2-Answer-there are three economic questions (what, how, to whom to produce to)
therefore when government is deliberating in terms of which commodity is going to be
produce (it is a what to produce economic question not the ‘’how to produce)
1.13 If we say that two variables are inversely related, this means that the resulting
relationship can be portrayed by a straight line parallel to the horizontal axis.
[1] True
[2] False
2-Answer –When there is a negative /inverse relationship between the variables (This
implies that the line will be downward sloping.diadram 1 shows a inverse relationship
while 2 shows the one that is parallel to the horizontal line, therefore the answer is false.
ECS1500 ASSIGNMENT SOLUTIONS
SEMESTER 2 2020
ECS1500
ASSIGNMENT 1
SOLUTIONS
SEMESTER 2 2020
, ECS 1500 ASSIGNMENT 1
SEMESTER 2:2020
UNIQUE ASSIGNMENT NUMBER: 541600
11 Free public health facilities in South Africa are an example of non-scarce services.
[1] True
[2] False
2 -Answer- False scarcity of commodity is refers to the limitation of resources given the
needs and wants of economic agents that are unlimited. Scarcity of commodities is not
defined by who provides it (being provided by the government or private sector)
1.12 When the government decides to increase the budget for higher learning by
decreasing the budget for the provision of roads and transport, the government is facing
the "how to produce" trade-off.
[1] True
[2] False
2-Answer-there are three economic questions (what, how, to whom to produce to)
therefore when government is deliberating in terms of which commodity is going to be
produce (it is a what to produce economic question not the ‘’how to produce)
1.13 If we say that two variables are inversely related, this means that the resulting
relationship can be portrayed by a straight line parallel to the horizontal axis.
[1] True
[2] False
2-Answer –When there is a negative /inverse relationship between the variables (This
implies that the line will be downward sloping.diadram 1 shows a inverse relationship
while 2 shows the one that is parallel to the horizontal line, therefore the answer is false.
