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MANCOSA ECONOMICS 1a PAST PAPERS
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FINAL ONLINE SUMMATIVE ASSESSMENTBachelor of Business Administration
Bachelor of Public Administration
Bachelor of Commerce in Accounting
Bachelor of Commerce in Entrepreneurship
Bachelor of Commerce in Retail Management
Bachelor of Commerce in Project Management
PROGRAMME
Bachelor of Commerce in International Business
Bachelor of Commerce in Financial Management
Bachelor of Commerce in Marketing Management
Bachelor of Commerce in Supply Chain Management
Bachelor of Commerce in Human Resource Management
Bachelor of Commerce in Information and Technology Management
MODULE Economics 1A
YEAR One (1)
INTAKE July 2023 Semester 1
DATE 01 December 2023
,SECTION A [100 MARKS]
Answer ALL the questions in this section.
Type ONLY the letter that represents the correct answer next to the corresponding number in your online answer
booklet. E.g. 26 B
QUESTION 1 (4 Marks)
Use the diagram below, which indicates maximum combinations of good X and good Y that can be produced
with available resources, to answer the question. On production possibility curve AC...
a) output combinations D and E represent full and efficient use of resources, but A, C and F represent inefficient
resource use.
b) output combination D represents the most efficient use of resources.
c) output combinations A, D, E and C all represent full and efficient resource use.
d) output combination A and C represents less efficient resource use than either D or E.
, QUESTION 2 (4 Marks)
“Industry organization Agri SA has expressed concern about rising input costs in the agricultural sector,
echoing concerns raised by the Agricultural Business Chamber (Agbiz) earlier this week. Agri SA says the
cost of direct materials, labour and other overheads are particularly worrying, while Agbiz mentioned how fuel
costs are gnawing at agribusiness’ profitability”.
Sunshine markets is producing and selling sweet potatoes and they have been impacted by the rising costs.
.
If sweet potatoes and potatoes are substitute products, which diagram above illustrates the effect on the sweet potato
market of a decrease in the price of potatoes?
a) A
b) B
c) C
d) D
QUESTION 3 (4 Marks)
Cooking oil prices are up 60%. The spike in the price of cooking oils is expected to remain high over the next
few months, and could possibly extend until the end of the year. The crisis, which has been on-going for over
a year, has been largely due to a global shortage in oil producing crops.
The demands for oil are high, and currently standing, South Africa does not produce enough vegetable oil to
be able to meet local demand. As a result, it has pushed the industry to source oils from Europe; having our
domestic prices being influenced by international oil prices.
Source:https://oildrop.co.za/blog/cooking-oil-prices-succeeding-60percent-affect-the-south-african-market
The diagram below illustrates the demand and supply of cooking oil. NB: quantity x represents cooking oil.
Figure 2 Demand and supply for cooking oil
, If the demand curve for cooking oil shifts from D1 to D2, one could say that
a) The quantity demanded of cooking oil has decreased to Q1 and price has fallen to P2.
b) The price of coconut oil which is a substitute for cooking oil must have fallen.
c) There has been an increase in demand for cooking oil .
d) the higher price of cooking oil has caused the quantity demanded to fall from OQ1 to OQ2.
QUESTION 4 (4 Marks)
In the fictional town of Wilsonville, there's a bustling local economy with numerous firms and households. The
local bakery, owned by Mrs. Smith, is a favorite among the townspeople for its delicious pies. Mrs. Smith
buys her fresh apples from the local orchard, which is owned by Mr. Johnson. Meanwhile, Mr. Johnson and
his family are regular customers at Mrs. Smith's bakery, indulging in her pies every weekend. Use the
diagram below to answer the question.
What do arrows a and b represents?
a) a - income; b - goods and services
b) a - spending; b - factors of production
c) a - spending; b - goods and services
d) a - income; b - factors of production
QUESTION 5 (4 Marks)
Econoline Company produces only two goods and they operate with limited resources. The production
manager decides to conduct an analysis of its production possibilities to determine the best use of its limited
resources. They create a Production Possibility Frontier (PPF) diagram to represent the maximum
combinations of good X and good Y that can be produced with their available resources.
As the output of Good Y increases along the frontier, which of the following changes involves the largest
opportunity cost?
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