Student
Examination paper
“Come all for this greatness”
...100% Correct Ans...
ECS1601 TEST BANK
__________ is not a primary cause of government failure.
answ>>2) The inefficient behaviour of the market (correct)
____________ is NOT likely to cause a problem in the measurement of GDP.
[1] Pollution
[2] Smuggling
[3] Commercial farming
[4] Adjustment of original data
answ>>[3] Commercial farming
_______________ would result due to the closure of the gold mines in South Africa.
[1] Seasonal unemployment.
[2] Structural unemployment.
[3] Cyclical unemployment.
[4] Frictional unemployment.
answ>>[2] Structural unemployment.
1.7. Use the following two statements to answer the question:
a. The primary function of government is to establish the framework within which the
economy operates.
b. A member of the government cannot be a member of a household.
[1] only a is correct.
,[2] a is incorrect and b is correct.
[3] both a and b are correct.
[4] both a and b are incorrect.
answ>> [1] only a is correct.
A complete business cycle is represented by movement from
1) A to B.
2) B to C.
3) A to C. (correct)
answ>>3) A to C. (correct)
A country's balance of payments ...
[1] records all the economic activities which take place within the boundaries of the
country.
[2] will show a deficit on the current account if the value of exports exceeds the value of
imports.
[3] keep records of all transactions that its households, firms, and government complete
with households, firms, and government outside the country.
[4] records all the transactions in the rest of world.
answ>> [3] keep records of all transactions that its households, firms, and government
complete with households, firms, and government outside the country.
A decrease in leakages from the circular flow of income and spending leads to _________ in
the multiplier.
answ>>3) an increase (correct)
A decrease in the marginal propensity to consume
answ>>4) lowers the value of the multiplier. (correct)
A decrease in the tax rate in the Keynesian model will ...
[1] shift the aggregate spending curve downwards.
[2] shift the consumption curve upwards.
[3] swivel the consumption curve downwards
[4] swivel the aggregate spending curve upwards
answ>>[4] swivel the aggregate spending curve upwards
,A depreciation in the value of the rand on the foreign exchange market is most likely to lead
to____
answ>>a higher demand for South African exports
A depreciation of the rand against the dollar will lead to a decrease in ...
[1] the price of imported goods in South Africa.
[2] the price of South African products sold in the US.
[3] the price of petrol in South Africa.
[4] the number of tourists from the US visiting South Africa.
answ>>[2] the price of South African products sold in the US.
A depreciation of the rand may have inflationary consequences in South Africa because
it______.
answ>>increases the costs of exports
A depreciation of the rand may have inflationary consequences in South Africa because
it______.
answ>>increases the costs of imported goods.
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
answ>>[2] The balance on Sibahle's savings account
A form of expenditure that does NOT depend on real GDP or income is called
answ>>3) autonomous expenditure. (correct)
A neutral tax ...
, [1] distort the allocation of resources.
[2] lower the welfare of society.
[3] has a low effect on relative prices.
[4] act as a disincentive to the owners of factors of production.
answ>>[3] has a low effect on relative prices.
A News Website headline reads: "SARB Reduces Repo Rate for Third Time This Year."
This headline indicates that the SARB is most likely trying to...
[1] decrease the cost of credit.
[2] increase the liquidity deficit of the private banks.
[3] increase the SARB current market rates.
[4] decrease inflationary pressures in the economy.
answ>>[1] decrease the cost of credit.
A person is considered unemployed, when he/she is ...
[1] a fulltime student.
[2] not looking for a job because there are no jobs available where he/she stays.
[3] a fulltime stay home dad or mom who looks after the family.
[4] temporarily laid off.
answ>>[4] temporarily laid off.
A person should specialise in the activity ...
[1] with the lowest cost.
[2] which he likes the most.
[3] with the lowest opportunity cost.
[4] closest to home.
answ>>[3] with the lowest opportunity cost.
A simultaneous decrease in aggregate supply and an increase in aggregate demand will
always
answ>>3) increase the price level. (correct)
A specific tariff imposed on the imports of motor vehicles will
answ>>2) increase the level of domestic production of motor vehicles. (correct)
Examination paper
“Come all for this greatness”
...100% Correct Ans...
ECS1601 TEST BANK
__________ is not a primary cause of government failure.
answ>>2) The inefficient behaviour of the market (correct)
____________ is NOT likely to cause a problem in the measurement of GDP.
[1] Pollution
[2] Smuggling
[3] Commercial farming
[4] Adjustment of original data
answ>>[3] Commercial farming
_______________ would result due to the closure of the gold mines in South Africa.
[1] Seasonal unemployment.
[2] Structural unemployment.
[3] Cyclical unemployment.
[4] Frictional unemployment.
answ>>[2] Structural unemployment.
1.7. Use the following two statements to answer the question:
a. The primary function of government is to establish the framework within which the
economy operates.
b. A member of the government cannot be a member of a household.
[1] only a is correct.
,[2] a is incorrect and b is correct.
[3] both a and b are correct.
[4] both a and b are incorrect.
answ>> [1] only a is correct.
A complete business cycle is represented by movement from
1) A to B.
2) B to C.
3) A to C. (correct)
answ>>3) A to C. (correct)
A country's balance of payments ...
[1] records all the economic activities which take place within the boundaries of the
country.
[2] will show a deficit on the current account if the value of exports exceeds the value of
imports.
[3] keep records of all transactions that its households, firms, and government complete
with households, firms, and government outside the country.
[4] records all the transactions in the rest of world.
answ>> [3] keep records of all transactions that its households, firms, and government
complete with households, firms, and government outside the country.
A decrease in leakages from the circular flow of income and spending leads to _________ in
the multiplier.
answ>>3) an increase (correct)
A decrease in the marginal propensity to consume
answ>>4) lowers the value of the multiplier. (correct)
A decrease in the tax rate in the Keynesian model will ...
[1] shift the aggregate spending curve downwards.
[2] shift the consumption curve upwards.
[3] swivel the consumption curve downwards
[4] swivel the aggregate spending curve upwards
answ>>[4] swivel the aggregate spending curve upwards
,A depreciation in the value of the rand on the foreign exchange market is most likely to lead
to____
answ>>a higher demand for South African exports
A depreciation of the rand against the dollar will lead to a decrease in ...
[1] the price of imported goods in South Africa.
[2] the price of South African products sold in the US.
[3] the price of petrol in South Africa.
[4] the number of tourists from the US visiting South Africa.
answ>>[2] the price of South African products sold in the US.
A depreciation of the rand may have inflationary consequences in South Africa because
it______.
answ>>increases the costs of exports
A depreciation of the rand may have inflationary consequences in South Africa because
it______.
answ>>increases the costs of imported goods.
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
answ>>[2] The balance on Sibahle's savings account
A form of expenditure that does NOT depend on real GDP or income is called
answ>>3) autonomous expenditure. (correct)
A neutral tax ...
, [1] distort the allocation of resources.
[2] lower the welfare of society.
[3] has a low effect on relative prices.
[4] act as a disincentive to the owners of factors of production.
answ>>[3] has a low effect on relative prices.
A News Website headline reads: "SARB Reduces Repo Rate for Third Time This Year."
This headline indicates that the SARB is most likely trying to...
[1] decrease the cost of credit.
[2] increase the liquidity deficit of the private banks.
[3] increase the SARB current market rates.
[4] decrease inflationary pressures in the economy.
answ>>[1] decrease the cost of credit.
A person is considered unemployed, when he/she is ...
[1] a fulltime student.
[2] not looking for a job because there are no jobs available where he/she stays.
[3] a fulltime stay home dad or mom who looks after the family.
[4] temporarily laid off.
answ>>[4] temporarily laid off.
A person should specialise in the activity ...
[1] with the lowest cost.
[2] which he likes the most.
[3] with the lowest opportunity cost.
[4] closest to home.
answ>>[3] with the lowest opportunity cost.
A simultaneous decrease in aggregate supply and an increase in aggregate demand will
always
answ>>3) increase the price level. (correct)
A specific tariff imposed on the imports of motor vehicles will
answ>>2) increase the level of domestic production of motor vehicles. (correct)
