ECS1601 0717513144
DISCLAIMER
THE DOCUMENT CONSISTS OF ECS1601 2023 POSSIBLE MCQ QUESTIONS
AND THEIR PROPOSED SOLUTIONS. THIS IS NOT AN OFFICIAL DOCUMENT
FROM UNISA BUT IT IS A GUIDE THAT WOULD HELP STUDENTS ON
ANSWERING QUESTIONS OF SIMILAR NATURE. FOR EXPLANATIONS,
STUDENTS CAN CONTACT THE FOLLOWING DETAILS:
CALL/WHATSAPP/TEXT MESSAGE ON:
, ECS1601 0717513144
Which one of the following will not be appropriate in an attempt to combat demand-pull
inflation?
a.
An increase in interest rates
b.
An increase in taxes
c.
A decrease in government spending
d.
Measures to decrease the productivity of labour
***********************************************************************
In the case of demand-pull inflation, an increase in the general price level is
accompanied by … in total production. In the case of cost-push inflation, an increase in
the general price level is accompanied by…in total production.
a.
a decrease; an increase
b.
a decrease; a decrease
c.
an increase; an increase
d.
an increase; a decrease
******************************************************************
Which one of the following is an example of inflation?
a.
A 4% increase in the tax rate.
, ECS1601 0717513144
b.
A 4% increase in the interest rate.
c.
A 4% increase in the CPI.
d.
A 4% increase in the petrol price.
*********************************************************************
Demand-pull inflation can be combated by …
a.
decreasing personal income tax.
b.
lowering interest rates.
c.
raising interest rates.
d.
increasing government spending.
***********************************************************************
Which of the following can cause demand-pull inflation?
[1] A decrease in interest rates which leads to an increase in consumption and
investment spending.
[2] An increase in government spending on social wealth and education.
[3] A rise in the cost of import intermediate goods due to a depreciation of the domestic
currency.
a.
[1] and [2]
b.
, ECS1601 0717513144
[3]
c.
[1]
d.
[1], [2] and [3]
e.
[2]
*******************************************************************************
Which of the following best describes a difference between demand-pull inflation and
cost-push inflation?
a.
Demand-pull inflation occurs when there is a shortage in aggregate demand, while cost-
push inflation is the upward pressure on the general price level due to rising cost of
production.
b.
Demand-pull inflation is triggered by increases in the cost of production, while cost-push
inflation occurs when the aggregate demand for goods and services increases while
aggregate supply remains unchanged.
c.
There is no difference between demand-pull inflation and cost-push inflation as they are
triggered by the same sources.
d.
Cost-push inflation can be caused by increases in the cost of wages and
intermediate goods, while demand-pull can be caused by increase in exports.
*****************************************************************
Dimpo and Collin will be considered as unemployed if …
a.
they do not have any employment but are actively looking for employment.
DISCLAIMER
THE DOCUMENT CONSISTS OF ECS1601 2023 POSSIBLE MCQ QUESTIONS
AND THEIR PROPOSED SOLUTIONS. THIS IS NOT AN OFFICIAL DOCUMENT
FROM UNISA BUT IT IS A GUIDE THAT WOULD HELP STUDENTS ON
ANSWERING QUESTIONS OF SIMILAR NATURE. FOR EXPLANATIONS,
STUDENTS CAN CONTACT THE FOLLOWING DETAILS:
CALL/WHATSAPP/TEXT MESSAGE ON:
, ECS1601 0717513144
Which one of the following will not be appropriate in an attempt to combat demand-pull
inflation?
a.
An increase in interest rates
b.
An increase in taxes
c.
A decrease in government spending
d.
Measures to decrease the productivity of labour
***********************************************************************
In the case of demand-pull inflation, an increase in the general price level is
accompanied by … in total production. In the case of cost-push inflation, an increase in
the general price level is accompanied by…in total production.
a.
a decrease; an increase
b.
a decrease; a decrease
c.
an increase; an increase
d.
an increase; a decrease
******************************************************************
Which one of the following is an example of inflation?
a.
A 4% increase in the tax rate.
, ECS1601 0717513144
b.
A 4% increase in the interest rate.
c.
A 4% increase in the CPI.
d.
A 4% increase in the petrol price.
*********************************************************************
Demand-pull inflation can be combated by …
a.
decreasing personal income tax.
b.
lowering interest rates.
c.
raising interest rates.
d.
increasing government spending.
***********************************************************************
Which of the following can cause demand-pull inflation?
[1] A decrease in interest rates which leads to an increase in consumption and
investment spending.
[2] An increase in government spending on social wealth and education.
[3] A rise in the cost of import intermediate goods due to a depreciation of the domestic
currency.
a.
[1] and [2]
b.
, ECS1601 0717513144
[3]
c.
[1]
d.
[1], [2] and [3]
e.
[2]
*******************************************************************************
Which of the following best describes a difference between demand-pull inflation and
cost-push inflation?
a.
Demand-pull inflation occurs when there is a shortage in aggregate demand, while cost-
push inflation is the upward pressure on the general price level due to rising cost of
production.
b.
Demand-pull inflation is triggered by increases in the cost of production, while cost-push
inflation occurs when the aggregate demand for goods and services increases while
aggregate supply remains unchanged.
c.
There is no difference between demand-pull inflation and cost-push inflation as they are
triggered by the same sources.
d.
Cost-push inflation can be caused by increases in the cost of wages and
intermediate goods, while demand-pull can be caused by increase in exports.
*****************************************************************
Dimpo and Collin will be considered as unemployed if …
a.
they do not have any employment but are actively looking for employment.
