ECS1601 QUIZZES FOR
UNISA - ECONOMICS
IB QUESTIONS AND
VERIFIED ANSWERS
, ECS1601 QUIZZES FOR UNISA - ECONOMICS IB QUESTIONS AND
VERIFIED ANSWERS
[1] -R30 million. - -Answer--To bring about full employment, government spending should be ...
[1] -R30 million.
[2] -R72 million.
[3] R30 million.
[4] R75 million.
[1] 0.4 and 2 - -Answer--Questions 2.12 and 2.13 are based on the following diagrams, which show
production possibilities in Zimbabwe and South Africa:
The opportunity cost of producing one cigarette is _______ for Zimbabwe and South Africa respectively.
[1] 0.4 and 2
[2] 40 and 100
[3] 4 and 10
[4] 2.5 and 0.5
[1] 195 - -Answer--The equilibrium level of income is ...
[1] 195
[2] 312
[3] 156
[4] 273
[1] 260 - -Answer--Autonomous consumption is equal to ...
[1] 260
[2] 420
[3] 580
[4] 0
[1] 5 - -Answer--The value of the multiplier is ...
[1] 5
[2] 0.20
[3] 1
[4] 2
[1] a and b - -Answer--Which of the following statements regarding the monetary and fiscal policy lags
is/are correct?
a) The recognition lag is the same for monetary and fiscal policy.
b) The existence of lags makes it difficult to stabilise the economy by using monetary
and/or fiscal policy.
,c) The implementation lag associated with monetary policy is very long.
[1] a and b
[2] b and c
[3] a and c
[4] All the statements are correct.
[1] a decrease in the interest rate - -Answer--In the Keynesian model with government and foreign
sector, a parallel upward shift of the aggregate spending curve could be due to ...
[1] a decrease in the interest rate
[2] a decrease in the tax rate
[3] an increase in the marginal propensity to consume
[4] a decrease in the marginal propensity to consume
[1] a depreciation of the rand against the dollar. - -Answer--Use the figure below to -Answer- question
3.19.
The movement from X to X' can result from ...
[1] a depreciation of the rand against the dollar.
[2] an appreciation of the rand against the dollar.
[3] an increase in domestic income.
[4] a decrease in domestic income.
[1] a is correct - -Answer--The multiplier for a Keynesian model with a foreign sector is _____ the
multiplier of a Keynesian model without a foreign sector.
a) lower than
b) higher than
c) same as
[1] a is correct
[2] b is correct
[3] c is correct
[4] all of them are correct
[1] A rapid increase of people migrating from rural areas to the cities of Gauteng is one of the causes of
increased government spending. - -Answer--Which one of the following statements regarding
government spending in South Africa is correct?
[1] A rapid increase of people migrating from rural areas to the cities of Gauteng is one of the causes of
increased government spending.
[2] Table 3.1 in the prescribed textbook shows that the total spending by general
government (% of GDE) was 20,5 in 2010%.
[3] The composition of government spending has remained the same over a period 1990
to 2016.
[4] Political or other shocks always results in a massive decrease in spending by
, government and households.
[1] American investors selling their South African assets. - -Answer--The change in the demand curve
from D to D2 could be the result of...
[1] American investors selling their South African assets.
[2] an increase in South African exports.
[3] a decrease in South African exports.
[4] speculators anticipating an increase in the value of the rand relative to the US dollar.
[1] an increase in government spending - -Answer--Question 4.29 is based on the following diagram
showing business cycle.
Which of the following policy changes would result in the movement from A to B?
[1] an increase in government spending
[2] an increase in the interest rate
[3] an increase in income taxes
[4] a decrease in government spending
[1] an increase in interest rate. - -Answer--Use the figure below to -Answer- questions 3.25 to 3.26.
The downwards movement from A to A' can result from ...
[1] an increase in interest rate.
[2] a decrease in interest rate.
[3] an increase in taxes.
[4] a decrease in taxes.
[1] An increase in the interest rate leads to a decrease in the quantity of money created. - -Answer--
Which one of the following statements is correct?
[1] An increase in the interest rate leads to a decrease in the quantity of money created.
[2] The quantity of money that people hold is positively related to the interest rate level.
[3] The income level and the interest rate level affect the quantity of money.
[4] As the income level increases, the amount of money that individuals hold, decreases
[1] appreciation of the US dollar. - -Answer--The shift in the demand curve from D to D2 demonstrates
an ...
[1] appreciation of the US dollar.
[2] increase in the demand for rand.
[3] increase in the demand for the exchange rate.
[4] appreciation of the rand.
[1] b - -Answer--Which of the following statements is/are correct regarding unemployment in the
Keynesian and the AD-AS models?
a. In the production function, all the inputs are assumed to be fixed.
UNISA - ECONOMICS
IB QUESTIONS AND
VERIFIED ANSWERS
, ECS1601 QUIZZES FOR UNISA - ECONOMICS IB QUESTIONS AND
VERIFIED ANSWERS
[1] -R30 million. - -Answer--To bring about full employment, government spending should be ...
[1] -R30 million.
[2] -R72 million.
[3] R30 million.
[4] R75 million.
[1] 0.4 and 2 - -Answer--Questions 2.12 and 2.13 are based on the following diagrams, which show
production possibilities in Zimbabwe and South Africa:
The opportunity cost of producing one cigarette is _______ for Zimbabwe and South Africa respectively.
[1] 0.4 and 2
[2] 40 and 100
[3] 4 and 10
[4] 2.5 and 0.5
[1] 195 - -Answer--The equilibrium level of income is ...
[1] 195
[2] 312
[3] 156
[4] 273
[1] 260 - -Answer--Autonomous consumption is equal to ...
[1] 260
[2] 420
[3] 580
[4] 0
[1] 5 - -Answer--The value of the multiplier is ...
[1] 5
[2] 0.20
[3] 1
[4] 2
[1] a and b - -Answer--Which of the following statements regarding the monetary and fiscal policy lags
is/are correct?
a) The recognition lag is the same for monetary and fiscal policy.
b) The existence of lags makes it difficult to stabilise the economy by using monetary
and/or fiscal policy.
,c) The implementation lag associated with monetary policy is very long.
[1] a and b
[2] b and c
[3] a and c
[4] All the statements are correct.
[1] a decrease in the interest rate - -Answer--In the Keynesian model with government and foreign
sector, a parallel upward shift of the aggregate spending curve could be due to ...
[1] a decrease in the interest rate
[2] a decrease in the tax rate
[3] an increase in the marginal propensity to consume
[4] a decrease in the marginal propensity to consume
[1] a depreciation of the rand against the dollar. - -Answer--Use the figure below to -Answer- question
3.19.
The movement from X to X' can result from ...
[1] a depreciation of the rand against the dollar.
[2] an appreciation of the rand against the dollar.
[3] an increase in domestic income.
[4] a decrease in domestic income.
[1] a is correct - -Answer--The multiplier for a Keynesian model with a foreign sector is _____ the
multiplier of a Keynesian model without a foreign sector.
a) lower than
b) higher than
c) same as
[1] a is correct
[2] b is correct
[3] c is correct
[4] all of them are correct
[1] A rapid increase of people migrating from rural areas to the cities of Gauteng is one of the causes of
increased government spending. - -Answer--Which one of the following statements regarding
government spending in South Africa is correct?
[1] A rapid increase of people migrating from rural areas to the cities of Gauteng is one of the causes of
increased government spending.
[2] Table 3.1 in the prescribed textbook shows that the total spending by general
government (% of GDE) was 20,5 in 2010%.
[3] The composition of government spending has remained the same over a period 1990
to 2016.
[4] Political or other shocks always results in a massive decrease in spending by
, government and households.
[1] American investors selling their South African assets. - -Answer--The change in the demand curve
from D to D2 could be the result of...
[1] American investors selling their South African assets.
[2] an increase in South African exports.
[3] a decrease in South African exports.
[4] speculators anticipating an increase in the value of the rand relative to the US dollar.
[1] an increase in government spending - -Answer--Question 4.29 is based on the following diagram
showing business cycle.
Which of the following policy changes would result in the movement from A to B?
[1] an increase in government spending
[2] an increase in the interest rate
[3] an increase in income taxes
[4] a decrease in government spending
[1] an increase in interest rate. - -Answer--Use the figure below to -Answer- questions 3.25 to 3.26.
The downwards movement from A to A' can result from ...
[1] an increase in interest rate.
[2] a decrease in interest rate.
[3] an increase in taxes.
[4] a decrease in taxes.
[1] An increase in the interest rate leads to a decrease in the quantity of money created. - -Answer--
Which one of the following statements is correct?
[1] An increase in the interest rate leads to a decrease in the quantity of money created.
[2] The quantity of money that people hold is positively related to the interest rate level.
[3] The income level and the interest rate level affect the quantity of money.
[4] As the income level increases, the amount of money that individuals hold, decreases
[1] appreciation of the US dollar. - -Answer--The shift in the demand curve from D to D2 demonstrates
an ...
[1] appreciation of the US dollar.
[2] increase in the demand for rand.
[3] increase in the demand for the exchange rate.
[4] appreciation of the rand.
[1] b - -Answer--Which of the following statements is/are correct regarding unemployment in the
Keynesian and the AD-AS models?
a. In the production function, all the inputs are assumed to be fixed.
