PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELGATE should
not be rendered accountable since the contents in this document only give learners a
kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENTS
Education is the most powerful weapon which you can use to change the world
,7/6/25, 11:31 AM Assessment 2: Attempt review
UNISA 2025 ECS1601-25-Y Welcome Message Assessment 2
QUIZ
Started on Sunday, 6 July 2025, 10:48 AM
State Finished
Completed on Sunday, 6 July 2025, 11:29 AM
Time taken 40 mins 49 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following statements about nominal GDP is true?
Select one:
a. it is measured at base year prices
b. it grows when prices rise and output is constant
c. it accounts for price changes
d. it accounts for inflation
Question 2
Correct
Mark 1.00 out of 1.00
If GDP is less than GDE (gross domestic expenditure), then …
Select one:
a. the country has a surplus on the current account.
b. the country is a net exporter.
c. exports are less than imports.
d. the country is consuming less than it is producing.
Question 3
Correct
Mark 1.00 out of 1.00
Which of the following statements about nominal GDP is true?
Select one:
a. it accounts for price changes
b. it accounts for inflation
c. it grows when prices rise and output is constant
d. it is measured at base year prices
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=28208259&cmid=1102903 1/10
, 7/6/25, 11:31 AM Assessment 2: Attempt review
Question 4
Correct
Mark 1.00 out of 1.00
The multiplier effect means that …
a. consumption is typically several times as large as investment.
b. a large change in consumption can cause a much larger increase in investment.
c. a large increase in investment can cause GDP to change by a larger amount.
d. a large decline in the MPC can cause equilibrium GDP to rise by several times that amount.
e. there is a proportional relationship between the change in income and the change in investment
The multiplier effect refers to the increase in income arising from a new injection of investment. The size of the multiplier will
depend on the consumers’ decision to spend. Therefore, a large increase in investment can cause GDP to change by a larger
amount.
Question 5
Correct
Mark 1.00 out of 1.00
Which of the following statements regarding the consumption function is correct?
a. If income is zero, consumption is negative.
b. When income increases, consumption increases by more than the increase in income.
c. There is a negative relationship between consumption expenditure and income.
d. Total consumption spending consists of two components, namely autonomous consumption and induced
consumption.
Total consumption spending consists of autonomous and induced consumption. Refer to section 6.3 in the prescribed
textbook for a detailed explanation of both types of consumption. Consumption is positive even if income is zero. This is due
to the effect of non-income determinants of consumption spending. For example, even if income is zero, consumption can
also be financed by savings or credit. Refer to section 6.3 and box 6-2 in the prescribed textbook, which provides a detailed
explanation of how non-income factors affect consumption spending.
When income increases, consumption increases by less than the increase in income. The remaining part of the increase in
income is saved. There is a positive relationship between consumption expenditure and income. When income increases,
consumption increases because consumers can afford to purchase more goods and services. When income decreases,
consumption decreases because with less income, consumers’ buying power is reduced as they cannot afford goods and
services as they did before the decrease in income.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=28208259&cmid=1102903 2/10
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELGATE should
not be rendered accountable since the contents in this document only give learners a
kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENTS
Education is the most powerful weapon which you can use to change the world
,7/6/25, 11:31 AM Assessment 2: Attempt review
UNISA 2025 ECS1601-25-Y Welcome Message Assessment 2
QUIZ
Started on Sunday, 6 July 2025, 10:48 AM
State Finished
Completed on Sunday, 6 July 2025, 11:29 AM
Time taken 40 mins 49 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following statements about nominal GDP is true?
Select one:
a. it is measured at base year prices
b. it grows when prices rise and output is constant
c. it accounts for price changes
d. it accounts for inflation
Question 2
Correct
Mark 1.00 out of 1.00
If GDP is less than GDE (gross domestic expenditure), then …
Select one:
a. the country has a surplus on the current account.
b. the country is a net exporter.
c. exports are less than imports.
d. the country is consuming less than it is producing.
Question 3
Correct
Mark 1.00 out of 1.00
Which of the following statements about nominal GDP is true?
Select one:
a. it accounts for price changes
b. it accounts for inflation
c. it grows when prices rise and output is constant
d. it is measured at base year prices
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=28208259&cmid=1102903 1/10
, 7/6/25, 11:31 AM Assessment 2: Attempt review
Question 4
Correct
Mark 1.00 out of 1.00
The multiplier effect means that …
a. consumption is typically several times as large as investment.
b. a large change in consumption can cause a much larger increase in investment.
c. a large increase in investment can cause GDP to change by a larger amount.
d. a large decline in the MPC can cause equilibrium GDP to rise by several times that amount.
e. there is a proportional relationship between the change in income and the change in investment
The multiplier effect refers to the increase in income arising from a new injection of investment. The size of the multiplier will
depend on the consumers’ decision to spend. Therefore, a large increase in investment can cause GDP to change by a larger
amount.
Question 5
Correct
Mark 1.00 out of 1.00
Which of the following statements regarding the consumption function is correct?
a. If income is zero, consumption is negative.
b. When income increases, consumption increases by more than the increase in income.
c. There is a negative relationship between consumption expenditure and income.
d. Total consumption spending consists of two components, namely autonomous consumption and induced
consumption.
Total consumption spending consists of autonomous and induced consumption. Refer to section 6.3 in the prescribed
textbook for a detailed explanation of both types of consumption. Consumption is positive even if income is zero. This is due
to the effect of non-income determinants of consumption spending. For example, even if income is zero, consumption can
also be financed by savings or credit. Refer to section 6.3 and box 6-2 in the prescribed textbook, which provides a detailed
explanation of how non-income factors affect consumption spending.
When income increases, consumption increases by less than the increase in income. The remaining part of the increase in
income is saved. There is a positive relationship between consumption expenditure and income. When income increases,
consumption increases because consumers can afford to purchase more goods and services. When income decreases,
consumption decreases because with less income, consumers’ buying power is reduced as they cannot afford goods and
services as they did before the decrease in income.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=28208259&cmid=1102903 2/10
