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