Question 1
Q1.1) False, human wants are unlimited and resources are limited, therefore there is
always scarcity even in first world countries (Mohr P, 2020).
Q1.2) False, consumer goods are bought by consumers, this will be listed as a capital
good also known as final goods where this highway would be a capital good because it is
not consumed however it is used (Mohr P, 2020).
Q1.3) True, firms spend money on capital goods which are used to produce goods and
services, these goods are also called investments (Mohr P, 2020).
Q1.4 True, this is a demand equation which is a short way of explaining the relationship
between the quantity of a good demanded and the price, it is an abbreviation for Qd= f(Px,
Pg, Y͞ , T͞ , N͞ , …). The quantity demanded depends on the price, ther͞ efore the
main determination of quantity demanded is price, price is the main determination of
demand, and all the other determinants constant (ceteris paribus) (Mohr P, 2020).
Q1.5 True, equilibrium is reached when supply and demand are equal, here the quantity
demanded and quantity supplied is equal, there will be no excess demand or excess
supply at this point, on a graph it will be the point where the supply curve and demand
curve intersect (Mohr P, 2020).
Question 2
Q 2.1.1) Macro.
Q 2.1.2) Macro
Q 2.1.3) Micro
Q 2.1.4) Micro
Q 2.1.5) Micro
Q 2.2) The level of change is the difference between two values in this case the difference
between GDP per capita in South Africa in 2019 and 2018. The rate of change is the percentage
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, change between two values. The level of GDP per capita in South Africa in 2019 was lower than in
2018. In 2019 The level of change to 2019, which was 6,001.40 USD from 2018, 6,374.03 USD
was -372,63 USD.
Therefore, the rate of change is:
- {[(6,001.40/6,374.03) -1] x 100} = -5.85%
Therefore:
- The rate of change in GDP Per Capita from 2018 to 2019 in South Africa was -5.85%
Q 2.3) I do not agree with this statement because money in the deposit account can be used to buy
capital for the firm but it is not a resource, capital goods are goods that aren’t consumed like
consumer goods, are used to produce other goods, this includes machinery, equipment used in the
manufacturing of goods.
(M.Hall,2020)
Money is not a factor of production therefore it cannot be referred to as economic capital as it
cannot be used in the production of other goods, capital is the machinery and equipment used in
the production other goods, money deposited in the bank is not be used to produce other goods
money deposited in the bank can’t be referred to as capital because it is not being used for the firm
in any way when it’s in the bank, it is not used to finance the firms ongoing daily activities. (Mohr P,
2020)
Question 3
Q 3.1.1)
Q 3.1.2)
These are the combinations of iron ore and wheat that a small economy can produce when using
all resources optimally, scarcity opportunity cost and choice is illustrated on this curve. If this
community uses all of its resources to produce iron ore then the opportunity cost will be the
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Q1.1) False, human wants are unlimited and resources are limited, therefore there is
always scarcity even in first world countries (Mohr P, 2020).
Q1.2) False, consumer goods are bought by consumers, this will be listed as a capital
good also known as final goods where this highway would be a capital good because it is
not consumed however it is used (Mohr P, 2020).
Q1.3) True, firms spend money on capital goods which are used to produce goods and
services, these goods are also called investments (Mohr P, 2020).
Q1.4 True, this is a demand equation which is a short way of explaining the relationship
between the quantity of a good demanded and the price, it is an abbreviation for Qd= f(Px,
Pg, Y͞ , T͞ , N͞ , …). The quantity demanded depends on the price, ther͞ efore the
main determination of quantity demanded is price, price is the main determination of
demand, and all the other determinants constant (ceteris paribus) (Mohr P, 2020).
Q1.5 True, equilibrium is reached when supply and demand are equal, here the quantity
demanded and quantity supplied is equal, there will be no excess demand or excess
supply at this point, on a graph it will be the point where the supply curve and demand
curve intersect (Mohr P, 2020).
Question 2
Q 2.1.1) Macro.
Q 2.1.2) Macro
Q 2.1.3) Micro
Q 2.1.4) Micro
Q 2.1.5) Micro
Q 2.2) The level of change is the difference between two values in this case the difference
between GDP per capita in South Africa in 2019 and 2018. The rate of change is the percentage
1 of 11
, change between two values. The level of GDP per capita in South Africa in 2019 was lower than in
2018. In 2019 The level of change to 2019, which was 6,001.40 USD from 2018, 6,374.03 USD
was -372,63 USD.
Therefore, the rate of change is:
- {[(6,001.40/6,374.03) -1] x 100} = -5.85%
Therefore:
- The rate of change in GDP Per Capita from 2018 to 2019 in South Africa was -5.85%
Q 2.3) I do not agree with this statement because money in the deposit account can be used to buy
capital for the firm but it is not a resource, capital goods are goods that aren’t consumed like
consumer goods, are used to produce other goods, this includes machinery, equipment used in the
manufacturing of goods.
(M.Hall,2020)
Money is not a factor of production therefore it cannot be referred to as economic capital as it
cannot be used in the production of other goods, capital is the machinery and equipment used in
the production other goods, money deposited in the bank is not be used to produce other goods
money deposited in the bank can’t be referred to as capital because it is not being used for the firm
in any way when it’s in the bank, it is not used to finance the firms ongoing daily activities. (Mohr P,
2020)
Question 3
Q 3.1.1)
Q 3.1.2)
These are the combinations of iron ore and wheat that a small economy can produce when using
all resources optimally, scarcity opportunity cost and choice is illustrated on this curve. If this
community uses all of its resources to produce iron ore then the opportunity cost will be the
2 of 11
