Exam Paper Oct 2007

This partial fill-in paper consists of 16 pages plus instructions for the completion of a mark-reading sheet.

Read the following instructions CAREFULLY before answering the paper.

The paper is divided into two sections: Section A and Section B.

SECTION A

Candidates must answer ALL the questions in this section.

SECTION B

In this section ALL the questions must be answered on the mark-reading sheet which is supplied.
Carefully follow the instructions for the completion of the mark-reading sheet.

Please ensure that you use the correct unique number on the mark-reading sheet:
If you are registered for ECS102-8, use the unique number 477834.
If you are registered for ECN1M2-Z, use the unique number 477842.
If you are registered for EFE1M2-E, use the unique number 477869.
If you are registered for REC102-Y, use the unique number 477850.

Your mark-reading sheet can get lost and you MUST therefore also write down your answers for this
section. On the last page of this paper space is provided for this purpose.




[TURN OVER]

, SECTION A [50 MARKS]

Answer ALL the following questions in the blocks provided.

QUESTION 1

Explain the difference between a stock variable and a flow variable. (2)




QUESTION 2

Complete the following circular flow of income and spending (note that is the flow of money). (4)




QUESTION 3

Distinguish between nominal GDP and real GDP. (2)