ECS1500 EXAM PACK

Contents MAY/JUNE 2013 ................................................................................................................................ 2 OCTOBER / NOVEMBER 2013 ........................................................................................................... 12 MAY / JUNE 2014 ............................................................................................................................ 20 NOVEMBER 2014 ............................................................................................................................. 27 2 MAY/JUNE 2013 1. The correct option is 4 If resources were available in unlimited quantities, then there would be no scarcity and need to study economics. 2. The correct option is 2 Statement is the correct definition of opportunity cost. 3. The correct option is 3 The two alternatives she has are either to take a full time job where she will earn R175 000 or to work for herself as a private consultant. If the chooses to work for herself, she will be giving up/ forgoe the fulltime job, which becomes her opportunity cost. 4. The correct option is 4 It is the most likely as all other options are obviously wrong. 5. The correct option is 3 In a price market, the forces of demand and supply determines the flow of goods and services. 6. The correct option is 3 As it is the incorrect statement. In the circular flow, model, households are the owners of factors of production such as labour and capital. In return households receive profits and remuneration. 7. The correct option is 3 If the price is below market equilibrium, excess demand will exist as consumers demand more goods (in this case 400) while suppliers are willing to supply loss (in this case 200). Excess demand of 400-200=200 units will occur. 8. The correct option is 1