ECS1501 EXAM PACK 2022. In the market for milk two things happen simultaneously: first, due to increased subsidies from
government, there was an increase in the number of dairy farmers. Second, due to unfavourable economic
growth, the average income per household has decreased. The effect of the ...
SECTION A – COMPULSORY WRITTEN QUESTIONS
Question 1
(1a) In the market for milk two things happen simultaneously: first, due to increased subsidies from
government, there was an increase in the number of dairy farmers. Second, due to unfavourable economic
growth, the average income per household has decreased. The effect of the subsidies is larger than the
effect of the decreased income per household. Draw the market for milk and show the all changes. (5)
(1b) Critically discuss your answer in question 1a, explaining the curves and making reference to any
changes.
Question 2
(2) Calculate the equilibrium quantity and price if the quantity demanded can be represented by the =
1800 + 0,6 and quantity supplied can be represented by = 7200 − 0,2 .
Question 3 (6)
(3a) When a local shop, called Burger Boet, decreases the price of hamburgers from R40 to R35, the
quantity of the hamburgers demanded increases from 800 to 1 150. What is the price elasticity of
demand for a burger at Burger Boet?
(3b) How can Burger Boet increase its total revenue made from hamburgers, based on the price
elasticity of the demand for hamburgers?
Question 4 (6)
(4a) When Sophie’s income increases from R12 000 to R16 000 per month, the quantity of petrol
demanded for her car increased from 40 litres to 45 litres per month. Calculate Sophie’s income
elasticity of demand for petrol.
,3 Ecs1501
(4b) Based on Sophie’s income elasticity of demand for petrol, explain what type of good petrol is.
Question 5 (5)
The following table shows some of the cost information of a firm. Fill in the missing values for A to E.
SECTION B – COMPULSORY MULTIPLE-CHOICE QUESTIONS
1. Economics is _____
[1] A study of the ethics of making money.
[2] The study of how scarce resources are allocated in an attempt to satisfy unlimited wants.
[3] The study of direct and indirect relationships between inputs and outputs in various production
methods.
[4] A sub discipline of business management.
Use the following production possibility curve (PPC) of Narnia to answer questions 2 to 4. Narnia can
only produce swords or ships.
, 4 Ecs1501
2. Point ___ shows an efficient use of resources, while point ___ is unattainable.
[1] A; B
[2] B; C
[3] C; D
[4] D; E
3. Narnia is currently producing eight ships but decides to increase the production of ships to 12. What is the
opportunity cost of the decision?
[1] 3 000 swords
[2] 4 000 swords
[3] 6 000 swords
[4] 10 000 swords
4. What will most likely happen when there is an influx of workers into Narnia? [1]
Point E will become unattainable
[2] Point B could become attainable
[3] Narnia will not be able to produce 12 ships anymore
[4] Narnia will not be able to produce 10 000 swords anymore
5. Which one of the following is a positive statement?
[1] A black Porsche looks much better than a red one
[2] BMW makes better cars than Mercedes Benz
[3] Japanese cars are more reliable than American cars
[4] Ferrari is an Italian sports car manufacturer
6. Which of the following is not one of the central economic questions that all economic systems aim to
answer?
[1] What goods and services will be produced?
[2] Who will produce these goods and services?
[3] How will these goods and services be produced?
[4] For whom will these goods and services be produced?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller STUDYLAB2023. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R54,47. You're not tied to anything after your purchase.
