ECS1601 Questions and Answers

ECS1601 Questions and Answers 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 - Answers-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. - Answers-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 - Answers-[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 - Answers-[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 - Answers-[3] natural resources (land), labour, capital, and entrepreneurship .Which of the following are the remuneration of the factors of production? [1] natural resources, rent, interest, labour [2] rent, salaries and wages, interest, profit [3] households, land, profit, capital [4] entrepreneur, firms, capital, labour - Answers-[2] rent, salaries and wages, interest, profit .In the circular flow of income and spending ... [1] savings, imports, taxes are leakages, while investment, government spending, exports are injections. [2] imports, taxes, investments are leakages, while exports, investments, government spending are injections. [3] savings, exports, taxes area leakages, while imports, investments, government spending are injections. [4] savings, government spending, imports are leakages, while investments, exports, taxes are injections. - Answers-[1] savings, imports, taxes are leakages, while investment, government spending, exports are injections. .In the circular flow of goods and services ... [1] firms sell factors of production on the goods market. [2] goods and services offered for sale on the goods market are purchased by firms. [3] households combine factors of production and produce consumer goods and services. [4] households offer factors of production in the factor market. - Answers-[4] households offer factors of production in the factor market. .What does the letters A, B, C and D in the figure represent? a) A represents factors of production b) B represents goods and services c) C represents foreign sector d) D represents spending by firm