ECS 1601 STUDY UNIT 1 QUIZ

ECS 1601
Study Unit 1 Quiz



Multiple Choice Questions (MCQ’s)

1. The circular flow model for goods and services is where:

a. The households sell their factors of production to the factor market where they are
purchased by firms
b. Firms consume goods and services offered on the goods market
c. Firms combine factors of production and produce goods and services
d. Goods and services are offered for sale on the factor market

[1] Only a
[2] Only a and c
[3] Only a, c and d
[4] Only d


2. The flow of income and spending is usually a:

[1] A monetary flow and flows in the same direction as goods and services
[2] A goods flow and flows in the same direction as goods and services
[3] A services flow and flows in the opposite direction to goods
[4] A monetary flow and flows in the opposite direction to goods and services



3. The act of purchasing capital goods is called:

[1] Consuming
[2] Making a profit
[3] Capital Formation
[4] Producing


4. An increase of exports from South Africa to other countries will:

[1] Increase the income of South African producers and increase aggregate spending on
South African goods
[2] Increase the income of South African producers and decrease aggregate spending on
South African goods
[3] Decrease the income of South African producers and decrease the aggregate spending
on South African goods
[4] Decrease the income of South African producers and increase the aggregate spending
on South African goods




Quiz will be discussed on your e-tutor site from Monday 10 February Page 1
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