ECS1601 Exam Questions + Verified
Answers 100% correct, Update 2026
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 - Correct 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. -
Correct 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 - Correct Answers ✅[2] The balance on
Sibahle's savings account
,ECS1601 Exam Questions + Verified
Answers 100% correct, Update 2026
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 -
Correct 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 -
Correct Answers ✅[3] natural resources (land), labour,
capital, and entrepreneurship
,ECS1601 Exam Questions + Verified
Answers 100% correct, Update 2026
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 - Correct 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. - Correct
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.
, ECS1601 Exam Questions + Verified
Answers 100% correct, Update 2026
[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. - Correct 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
[1] only a is correct
[2] only b and c are correct
[3] only b and d are correct
[4] a and b are correct, while c and d are incorrect - Correct
Answers ✅[3] only b and d are correct
Which of the following is not an injection into the economy of
South Africa?
Answers 100% correct, Update 2026
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 - Correct 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. -
Correct 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 - Correct Answers ✅[2] The balance on
Sibahle's savings account
,ECS1601 Exam Questions + Verified
Answers 100% correct, Update 2026
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 -
Correct 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 -
Correct Answers ✅[3] natural resources (land), labour,
capital, and entrepreneurship
,ECS1601 Exam Questions + Verified
Answers 100% correct, Update 2026
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 - Correct 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. - Correct
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.
, ECS1601 Exam Questions + Verified
Answers 100% correct, Update 2026
[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. - Correct 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
[1] only a is correct
[2] only b and c are correct
[3] only b and d are correct
[4] a and b are correct, while c and d are incorrect - Correct
Answers ✅[3] only b and d are correct
Which of the following is not an injection into the economy of
South Africa?
