ECS1601 Exam (Solved)

ECS1601 Exam (Solved) -Which of the following is/are correct? a) Households are confronted with unlimited wants, but with limited resources with which to satisfy those wants b) The scarcity of resources necessitate households to make choices {{Ans- both a and b are correct -Which of the following is/are correct regarding the distinction between macroeconomics and microeconomics? a) The price of apples at the supermarket is an example of a macroeconomic variable. b) An increase in the general price level (inflation) in the economy is an example of a macroeconomic variable. {{Ans- only b is correct -A flow variable is defined as a variable that is measured over a period. Which one of the following variables is not an example of a flow variable? [1] National income [2] The balance on Sibahle's savings account [3] Budget deficit [4] Total production {{Ans- [2] The balance on Sibahle's savings account -Which of the following is not an acceptable intervention by the public sector in a mixed economy? [1] the provision of funds for public goods such as parks and streetlights [2] regulation of the pricing behaviour of monopoly industries [3] stabilisation of the economy during periods of economic instability [4] regulation of the price increases that result from changes in patterns of demand and supply in the competitive market {{Ans- [4] regulation of the price increases that result from changes in patterns of demand and supply in the competitive market -The factors of production in an economy are ... [1] households, capital, land, entrepreneurship [2] government, household, firms, natural resources [3] natural resources (land), labour, capital, and entrepreneurship [4] human capital, land, natural resources, technology {{Ans- [3] natural resources (land), labour, capital, and entrepreneurship