⋆
]]
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ECS1501: Economics 1A
May/June Examination 2026 — Comprehensive Exam Revision Guide
Based on May/June 2023, 2024 & 2025 Past Examination Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[ Economics — Department of Economics, UNISA [
_ Exam Revision Guide
ECS1501
Module Code:
Economics 1A
Module Name:
May/June Examination 2026
Paper / Exam:
May/June 2023, 2024 & 2025 Papers
Based on:
100 marks
Total Marks:
3 hours
Duration:
Use this guide to revise thoroughly. Focus on understanding, not memorisation. All
questions and answers reflect the ECS1501 syllabus.
Exam Revision Notes | ECS1501 | 2026
,ECS1501 | Exam Revision May/June Examination 2026
Question 1 [20 marks]
This question covers the foundational concepts of economics: the economic problem, scarcity,
choice, opportunity cost, and the production possibilities curve.
(1.1) [2 marks]
Question: Define the concept of scarcity in economics and explain why it is considered
the fundamental economic problem.
Answer: Scarcity is the condition that arises because human wants and needs are
unlimited, but the resources (land, labour, capital, and entrepreneurship) available to
satisfy those wants are limited.
It is the fundamental economic problem because:
• Resources are finite; they cannot satisfy all wants at the same time.
• Every economy — whether capitalist, socialist, or mixed — faces this problem
regardless of its level of development.
• Scarcity forces individuals, firms, and governments to make choices about how to
allocate resources.
Key Concept
Scarcity ̸= shortage. A shortage is a temporary excess of quantity demanded over
quantity supplied at a given price. Scarcity is a permanent, pervasive condition in
all economies.
(1.2) [2 marks]
Question: Distinguish between needs and wants. Provide one example of each in a
South African context.
Answer:
• Needs are basic necessities essential for survival, such as food, water, shelter, and
clothing. Example: clean drinking water.
Page 2 of 26
, ECS1501 | Exam Revision May/June Examination 2026
• Wants are desires for goods and services that are not essential for survival but
improve quality of life. They are unlimited. Example: a smartphone or a car.
The distinction matters because economics focuses on satisfying as many wants as
possible given limited resources, with needs generally prioritised first.
(1.3) [2 marks]
Question: Define opportunity cost and explain its relationship to scarcity and choice.
Answer: Opportunity cost is the value of the next best alternative forgone when a
choice is made.
Relationship to scarcity and choice:
• Because resources are scarce, choosing one option means giving up another.
• The opportunity cost captures the real cost of any decision — not just the money
spent, but what else could have been done with the same resources.
¥ Example
A UNISA student who uses R5 000 to buy textbooks forgoes a R5 000 holiday.
The holiday is the opportunity cost of the books.
(1.4) [4 marks]
Question: The table below shows possible combinations of maize (food) and cars (manu-
factured goods) that a hypothetical economy can produce using all its resources efficiently.
Combination Maize (million tonnes) Cars (thousands)
A 0 10
B 1 9
C 2 7
D 3 4
E 4 0
(a) What is the opportunity cost of moving from combination B to combination C?
Page 3 of 26
]]
⋆
ECS1501: Economics 1A
May/June Examination 2026 — Comprehensive Exam Revision Guide
Based on May/June 2023, 2024 & 2025 Past Examination Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[ Economics — Department of Economics, UNISA [
_ Exam Revision Guide
ECS1501
Module Code:
Economics 1A
Module Name:
May/June Examination 2026
Paper / Exam:
May/June 2023, 2024 & 2025 Papers
Based on:
100 marks
Total Marks:
3 hours
Duration:
Use this guide to revise thoroughly. Focus on understanding, not memorisation. All
questions and answers reflect the ECS1501 syllabus.
Exam Revision Notes | ECS1501 | 2026
,ECS1501 | Exam Revision May/June Examination 2026
Question 1 [20 marks]
This question covers the foundational concepts of economics: the economic problem, scarcity,
choice, opportunity cost, and the production possibilities curve.
(1.1) [2 marks]
Question: Define the concept of scarcity in economics and explain why it is considered
the fundamental economic problem.
Answer: Scarcity is the condition that arises because human wants and needs are
unlimited, but the resources (land, labour, capital, and entrepreneurship) available to
satisfy those wants are limited.
It is the fundamental economic problem because:
• Resources are finite; they cannot satisfy all wants at the same time.
• Every economy — whether capitalist, socialist, or mixed — faces this problem
regardless of its level of development.
• Scarcity forces individuals, firms, and governments to make choices about how to
allocate resources.
Key Concept
Scarcity ̸= shortage. A shortage is a temporary excess of quantity demanded over
quantity supplied at a given price. Scarcity is a permanent, pervasive condition in
all economies.
(1.2) [2 marks]
Question: Distinguish between needs and wants. Provide one example of each in a
South African context.
Answer:
• Needs are basic necessities essential for survival, such as food, water, shelter, and
clothing. Example: clean drinking water.
Page 2 of 26
, ECS1501 | Exam Revision May/June Examination 2026
• Wants are desires for goods and services that are not essential for survival but
improve quality of life. They are unlimited. Example: a smartphone or a car.
The distinction matters because economics focuses on satisfying as many wants as
possible given limited resources, with needs generally prioritised first.
(1.3) [2 marks]
Question: Define opportunity cost and explain its relationship to scarcity and choice.
Answer: Opportunity cost is the value of the next best alternative forgone when a
choice is made.
Relationship to scarcity and choice:
• Because resources are scarce, choosing one option means giving up another.
• The opportunity cost captures the real cost of any decision — not just the money
spent, but what else could have been done with the same resources.
¥ Example
A UNISA student who uses R5 000 to buy textbooks forgoes a R5 000 holiday.
The holiday is the opportunity cost of the books.
(1.4) [4 marks]
Question: The table below shows possible combinations of maize (food) and cars (manu-
factured goods) that a hypothetical economy can produce using all its resources efficiently.
Combination Maize (million tonnes) Cars (thousands)
A 0 10
B 1 9
C 2 7
D 3 4
E 4 0
(a) What is the opportunity cost of moving from combination B to combination C?
Page 3 of 26
