ECS1500 EXAM PACK 2023
100+ QUESTIONS AND
CORRECT ANSWERS GRADED
A.
2023
2
Multiple Choice Questions (Section A):
(A)
1. A normal good is one for which the income elasticity is greater than one.
a. True
b. False
2. The demand for a good, perceived by the consumer to be a necessity, will ...
ECS1500 EXAM PACK 2023
100+ QUESTIONS AND
CORRECT ANSWERS GRADED
A.
, lOMoARcPSD|12286418
2023
Multiple Choice Questions (Section A):
(A)
1. A normal good is one for which the income elasticity is greater than one.
a. True
b. False
2. The demand for a good, perceived by the consumer to be a necessity, will tend to be elastic.
a. True
b. False
3. Macroeconomics is concerned with the study of how households and firms make decisions and how
they interact in specific markets
a. True
b. False
4. Price and quantity demanded for most goods are positively related
a. True
b. False
5. If three variables are related, one of them must be held constant when plotting the other two in the
by-coordinate system
a. True
b. False
6. A 50% increase in price, which results in a 90% decrease in the quantity demanded, indicates that
demand is elastic in this price range
a. True
b. False
7. Absolute advantage is a comparison based on productivity
a. True
b. False
2
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2023 ECS 1500 2023
8. A decrease m the price of soft drinks will increase their demand (will shrift the curve to the right).
a. True
b. False
9. If pizza and hamburgers are substitutes, a decrease in the price of pizza would increase the demand
for hamburgers.
a. True
b. False
10. Voluntary unemployment occurs when individuals choose not to be employed because they are not
willing to work for the current wage rate.
a. True
b. False
11. Cyclical unemployment is the result of a downturn in economic activity.
a. True
b. False
12. An increase in the price level is the same as a decrease in the value of money.
a. True
b. False
13. If the nominal interest rate is 7% and the inflation rate is 5%, the real interest rate is 12%.
a. True
b. False
14. A changes in prices of a good indicate that the market for that good is in equilibrium.
a. True
b. False
15. The impact lag is shorter for monetary policy than for fiscal policy.
a. True
b. False
3
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2023 ECS 1500 2023
(B)
1. We have observed that both the price and the quantity sold of golf balls are raising over time.
This is due to …..
1. Continual improvements in the technology used to produce golf balls.
2. Increases in the price of golf clubs over time.
3. Decreases in membership fees for country clubs with golf facilities.
4. An increase in the number of country clubs with golf facilities.
2. The price of good A goes up. As a result, the demand for good Q shifts to the left. From this, we
can infer that …
1. good A is a normal good
2. good Q IS an inferior good
3. goods A and Q are substitutes
4. goods A and Q are complements
3. You decide to take a vacation and the trip costs you R3 500. While you are on vacation, you do
not report to work where you could have earned R2 750. The opportunity cost of the vacation is
…..
1. R6 250 2
2. R2 750 3
3. R3 500
4. R 750
4. In the market for fitness balls, which of the following variables would decrease demand, ceteris
paribus?
1. An increase in the price of fitness balls
2. A decrease m the price of fitness balls
3. A fall in the income of consumers
4. A decrease in the price of hand pumps, a complement
5. Pete is considering attending a concert where the price of a ticket is R350 He estimates that the
cost of driving to the concert and parking there will amount to an additional R20. To be able to
attend the concert Pete will have to take time off from his part-time job. He estimates that he
will lose five hours at work, at a wage of R60 per hour Pete’s opportunity cost of attending the
concert equals ….
1. R350
2. R370
3. R300
4. R670
4
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