11 Free public health facilities in South Africa are an example of non-scarce services.
[1] True
[2] False
2 -Answer- False scarcity of commodity is refers to the limitation of resources given the needs
and wants of economic agents that are unlimited. Scarcity of commodities is not defined by
who provides it (being provided by the government or private sector)
1.12 When the government decides to increase the budget for higher learning by decreasing
the budget for the provision of roads and transport, the government is facing the "how to
produce" trade- off.
[1] True
[2] False
2-Answer-there are three economic questions (what, how, to whom to produce to) therefore
when government is deliberating in terms of which commodity is going to be produce (it is a
what to produce economic question not the ‘’how to produce)
1.13 If we say that two variables are inversely related, this means that the resulting relationship
can be portrayed by a straight line parallel to the horizontal axis.
[1] True
[2] False
, lOMoAR cPSD| 22789381
2-Answer –When there is a negative /inverse relationship between the variables (This
implies that the line will be downward sloping.diadram 1 shows a inverse relationship while
2 shows the one that is parallel to the horizontal line, therefore the answer is false.
1.14 A normal good's price and the quantity demanded are inversely related.
[1] True
[2] False
1- Answer -In economics, a normal good is any good for which demand increases when
income increases, i.e. with a positive income elasticity of demand. Normal good also portrays a
negative/inverse relationship between qnty dd and price
1.15 The South African economy exhibits significant economic freedom.
[1] True
[2] False
1- Answer true –SA economy is a mixed economy that is towards free market economy
therefore we can say that the economy exhibits significant economic freedom.
1.16 Within a command economy .
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