ECS1501 Assignment 5 Complete Answers Study
Guide 2025/2026 || Verified Solutions and Correct
Explanations
Description:
ECS1501 Assignment 5 complete solutions updated for 2025/2026.
Provides verified answers to economics concepts and problem-solving.
Keywords:
ECS1501 assignment 5 answers
economics study guide 2025
ECS1501 verified solutions
ECS1501 complete study resource
economics assignment prep
Section 1: Basic Economic Concepts and Circular Flow Model
1. What is the primary focus of the study of economics?
a) The distribution of political power
b) The optimal use of scarce resources to satisfy unlimited wants
c) The historical trends of stock markets
d) The study of individual psychology
2. In the circular flow model, households are:
a) Only suppliers of factors of production
b) Only demanders of goods and services
c) Suppliers of factors of production and demanders of goods and
services
d) Demanders of factors of production and suppliers of goods and
services
,3. The "factors of production" in the circular flow model include:
a) Money, stocks, and bonds
b) Land, labour, capital, and entrepreneurship
c) Finished goods and services only
d) Government regulations and taxes
4. In the circular flow model, firms act as:
a) Demanders in the factor market and suppliers in the goods market
b) Suppliers in the factor market and demanders in the goods market
c) Demanders in both markets
d) Suppliers in both markets
5. A point inside a Production Possibility Curve (PPC) indicates:
a) Economic growth
b) An unattainable combination of goods
c) Inefficiency or unemployment of resources
d) A state of perfect income distribution
6. An outward shift of the Production Possibility Curve (PPC) is
caused by:
a) A decrease in unemployment
b) An improvement in technology or an increase in resources
c) A shift from producing capital goods to consumer goods
d) An increase in inflation
7. The fundamental economic problem is:
a) High taxes
b) Scarcity
c) Unemployment
d) Global warming
, 8. The opportunity cost of a decision is:
a) The total financial cost of the decision
b) The value of the next best alternative that is forgone
c) The cost of all past decisions
d) The cost of production for a firm
9. A mixed economy is characterized by:
a) No government intervention
b) Interaction between households and firms only
c) A combination of market forces and government intervention
d) Central planning by the government
10. In the goods market of the circular flow model, money flows
from:
a) Firms to households
b) Households to firms
c) Government to firms
d) Rest of the world to households
Section 2: Demand, Supply, and Market Equilibrium
11. The law of demand states that, ceteris paribus:
a) As price increases, quantity demanded increases
b) As price increases, quantity demanded decreases
c) As income increases, demand decreases
d) Price and quantity demanded are unrelated
12. A movement along a demand curve is caused by a change in:
a) Consumer income
b) The price of the good itself
Guide 2025/2026 || Verified Solutions and Correct
Explanations
Description:
ECS1501 Assignment 5 complete solutions updated for 2025/2026.
Provides verified answers to economics concepts and problem-solving.
Keywords:
ECS1501 assignment 5 answers
economics study guide 2025
ECS1501 verified solutions
ECS1501 complete study resource
economics assignment prep
Section 1: Basic Economic Concepts and Circular Flow Model
1. What is the primary focus of the study of economics?
a) The distribution of political power
b) The optimal use of scarce resources to satisfy unlimited wants
c) The historical trends of stock markets
d) The study of individual psychology
2. In the circular flow model, households are:
a) Only suppliers of factors of production
b) Only demanders of goods and services
c) Suppliers of factors of production and demanders of goods and
services
d) Demanders of factors of production and suppliers of goods and
services
,3. The "factors of production" in the circular flow model include:
a) Money, stocks, and bonds
b) Land, labour, capital, and entrepreneurship
c) Finished goods and services only
d) Government regulations and taxes
4. In the circular flow model, firms act as:
a) Demanders in the factor market and suppliers in the goods market
b) Suppliers in the factor market and demanders in the goods market
c) Demanders in both markets
d) Suppliers in both markets
5. A point inside a Production Possibility Curve (PPC) indicates:
a) Economic growth
b) An unattainable combination of goods
c) Inefficiency or unemployment of resources
d) A state of perfect income distribution
6. An outward shift of the Production Possibility Curve (PPC) is
caused by:
a) A decrease in unemployment
b) An improvement in technology or an increase in resources
c) A shift from producing capital goods to consumer goods
d) An increase in inflation
7. The fundamental economic problem is:
a) High taxes
b) Scarcity
c) Unemployment
d) Global warming
, 8. The opportunity cost of a decision is:
a) The total financial cost of the decision
b) The value of the next best alternative that is forgone
c) The cost of all past decisions
d) The cost of production for a firm
9. A mixed economy is characterized by:
a) No government intervention
b) Interaction between households and firms only
c) A combination of market forces and government intervention
d) Central planning by the government
10. In the goods market of the circular flow model, money flows
from:
a) Firms to households
b) Households to firms
c) Government to firms
d) Rest of the world to households
Section 2: Demand, Supply, and Market Equilibrium
11. The law of demand states that, ceteris paribus:
a) As price increases, quantity demanded increases
b) As price increases, quantity demanded decreases
c) As income increases, demand decreases
d) Price and quantity demanded are unrelated
12. A movement along a demand curve is caused by a change in:
a) Consumer income
b) The price of the good itself
