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ECS1601 ASSESSMENT 4 SEMESTER 2 2024 MCQ ANSWERS
- Course
- Economics IB (ECS1601)
- Institution
- University Of South Africa (Unisa)
ECS1601 ASSESSMENT 4 SEMESTER 2 2024 MCQ ANSWERS
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9/1/24, 4:18 PM Assessment 4: Attempt reviewECS1601-24-Y_AS4 Introduction Assessment 4
QUIZ
Started on Sunday, 1 September 2024, 3:27 PM
State Finished
Completed on Sunday, 1 September 2024, 4:10 PM
Time taken 42 mins 16 secs
Question 1
Complete
Marked out of 1.00
Households are confronted with………, but with ………resources with which to
satisfy those wants.
a. limited wants; unlimited
b. unlimited wants; limited
c. unlimited wants; unlimited
d. limited wants; limited
Question 2
Complete
Marked out of 1.00
In the circular flow of income and spending in South Africa, spending by firms in
the factor market becomes ________ households, while ________ households in
the goods market becomes ________.
a. spending by; income to; income to firms.
b. income to; income to; spending by firms
c. income to; spending by; income to firms
d. spending by; spending by; income to firms
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,9/1/24, 4:18 PM Assessment 4: Attempt review
Question 3
Complete
Marked out of 1.00
Consider the circular flow of income. Which of the following is correct?
a. The government sector can purchase factors of production in the
factor market.
b. Households purchase goods and services in the factor market.
c. The government sector can only purchase goods and services in the
factor market.
d. The role of the foreign sector is to only purchase goods and services in
the goods market.
Question 4
Complete
Marked out of 1.00
Pick n Pay, Spar, Checkers and Shoprite came together to fix the price of gas
heaters in July 2022. This was so that they could keep the price at a level to
ensure that all four stores remained profitable. On which area of study in
economics does this focus?
a. international economics
b. microeconomics
c. development economics
d. macroeconomics
Question 5
Complete
Marked out of 1.00
Which one of the following statements is correct?
a. Money is not the only possible store of value.
b. In a monetary economy, there always has to be a double coincidence of
wants.
c. Money is always the best possible store of value.
d. The stock of money consists of notes and coins.
e. Money can never lose its usefulness as a unit of account.
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,9/1/24, 4:18 PM Assessment 4: Attempt review
Question 6
Complete
Marked out of 1.00
Suppose the SARB increases repo rate in an attempt to curb inflation. As a
result the….
a. cost of borrowing charged by banks will decrease.
b. quantity of money supply will increase by percentage increase of repo
rate.
c. creation of money will slow down as demand for loans declines.
d. price of interest-bearing securities or bonds in South Africa will
increase.
Question 7
Complete
Marked out of 1.00
Which one of the following statements is correct?
a. The stock (quantity) of money in the economy is determined by the
South African Reserve Bank. There is no independent money supply.
b.
Money creation by banks is influenced by the demand for bank loans.
c. In South Africa, money is created exclusively by the South African
Reserve Bank.
d. The South African Reserve Bank uses changes in the inflation rate to
regulate the rate at which new money is created.
e. The stock of money consists of bank deposits only and banks create
these deposits by making loans.
Question 8
Complete
Marked out of 1.00
In 2014, the South African Reserve Bank (SARB) placed African Bank
Investments Limited (African Bank) under curatorship, seizing control of its
operations. This is an example of the SARB conducting its … role.
a. national payments
b. bank supervisory
c. banker of other banks
d. lender of last resort
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, 9/1/24, 4:18 PM Assessment 4: Attempt review
Question 9
Complete
Marked out of 1.00
The SARB has decreased interest rates to ease financial pressures on
households and firms during the harsh times for the economy in 2020. In the
money market, the amount of money that people wish to hold for
(i) transaction purpose will increase, illustrated by a rightward shift of the L1
curve.
(ii) speculative purpose will increase, illustrated by a downward slide along the
L2 curve.
(iii) both transaction and speculative purposes will stay the same, illustrated by
L curve.
a. (i), (ii) and (iii) are correct
b. Only (ii) is correct
c. Only (i) is correct
d. (ii) and (iii) are correct
e. (i) and (ii) are correct
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=21654676&cmid=1056452 4/15
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