22; 23; 24 2023
MODULE NAME: MODULE CODE:
ECONOMICS 1B PMAC5112/d
ECONOMICS 1B ECON232
ECONOMICS B (MACRO) ECMS5112/d
ASSESSMENT TYPE: TEST (PAPER ONLY)
TOTAL MARK ALLOCATION: 60 MARKS
TOTAL HOURS: 1 HOUR (+5 minutes reading time)
INSTRUCTIONS:
1. Please adhere to all instructions in the assessment booklet.
2. Independent work is required.
3. Five minutes per hour of the assessment to a maximum of 15 minutes is dedicated to
reading time before the start of the assessment. You may make notes on your question
paper, but not in your answer sheet. Calculators may not be used during reading time.
4. You may not leave the assessment venue during reading time, or during the first hour or
during the last 15 minutes of the assessment.
5. Ensure that your name is on all pieces of paper or books that you will be submitting. Submit
all the pages of this assessment’s question paper as well as your answer script.
6. Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set question of this assessment.
7. Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1. This is a CLOSED BOOK assessment.
2. Calculators are allowed.
3. For multiple-choice questions, give only one (1) response per question. The marker will
ignore any question with more than one answer, unless otherwise stated. You should,
therefore, be sure of your answer before committing it to paper.
4. Answer All Questions .
5. Show all calculations, where applicable (marks may be awarded for this).
© The Independent Institute of Education (Pty) Ltd 2023 page 1 of 6
, 22; 23; 24 2023
Question 1 (Marks: 20)
Multiple-choice questions: Select one correct answer for each of the following. In your answer
booklet, write down only the number of the question and next to it, the number of the correct
answer.
Q.1.1 Consider the information in the table below, which depicts output rates in China (2)
and Japan for two goods when resources are fully and efficiently utilised.
Country Laptops Bicycles
China 400 200
Japan 300 100
Based on this information:
1) China has the absolute advantage in laptop production as well as bicycle
production and consequently will not benefit by trading with Japan.
2) China has the absolute advantage in bicycle production and Japan has the
comparative advantage in bicycle production.
3) China should specialise in bicycle production and should export bicycles to
Japan.
4) Japan should specialise in bicycle production and should export bicycles to
China.
Q.1.2 If total output (production) remains the same and all prices double, then real (2)
gross domestic product (GDP):
1) is constant and nominal GDP doubles.
2) and nominal GDP are both constant.
3) is constant and nominal GDP is reduced by half.
4) doubles and nominal GDP is constant.
© The Independent Institute of Education (Pty) Ltd 2023 page 2 of 6
MODULE NAME: MODULE CODE:
ECONOMICS 1B PMAC5112/d
ECONOMICS 1B ECON232
ECONOMICS B (MACRO) ECMS5112/d
ASSESSMENT TYPE: TEST (PAPER ONLY)
TOTAL MARK ALLOCATION: 60 MARKS
TOTAL HOURS: 1 HOUR (+5 minutes reading time)
INSTRUCTIONS:
1. Please adhere to all instructions in the assessment booklet.
2. Independent work is required.
3. Five minutes per hour of the assessment to a maximum of 15 minutes is dedicated to
reading time before the start of the assessment. You may make notes on your question
paper, but not in your answer sheet. Calculators may not be used during reading time.
4. You may not leave the assessment venue during reading time, or during the first hour or
during the last 15 minutes of the assessment.
5. Ensure that your name is on all pieces of paper or books that you will be submitting. Submit
all the pages of this assessment’s question paper as well as your answer script.
6. Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set question of this assessment.
7. Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1. This is a CLOSED BOOK assessment.
2. Calculators are allowed.
3. For multiple-choice questions, give only one (1) response per question. The marker will
ignore any question with more than one answer, unless otherwise stated. You should,
therefore, be sure of your answer before committing it to paper.
4. Answer All Questions .
5. Show all calculations, where applicable (marks may be awarded for this).
© The Independent Institute of Education (Pty) Ltd 2023 page 1 of 6
, 22; 23; 24 2023
Question 1 (Marks: 20)
Multiple-choice questions: Select one correct answer for each of the following. In your answer
booklet, write down only the number of the question and next to it, the number of the correct
answer.
Q.1.1 Consider the information in the table below, which depicts output rates in China (2)
and Japan for two goods when resources are fully and efficiently utilised.
Country Laptops Bicycles
China 400 200
Japan 300 100
Based on this information:
1) China has the absolute advantage in laptop production as well as bicycle
production and consequently will not benefit by trading with Japan.
2) China has the absolute advantage in bicycle production and Japan has the
comparative advantage in bicycle production.
3) China should specialise in bicycle production and should export bicycles to
Japan.
4) Japan should specialise in bicycle production and should export bicycles to
China.
Q.1.2 If total output (production) remains the same and all prices double, then real (2)
gross domestic product (GDP):
1) is constant and nominal GDP doubles.
2) and nominal GDP are both constant.
3) is constant and nominal GDP is reduced by half.
4) doubles and nominal GDP is constant.
© The Independent Institute of Education (Pty) Ltd 2023 page 2 of 6
