Essay
ECS1601 ASSESSMENT 6 SEMESTER 2 2024
- Course
- Economics IB (ECS1601)
- Institution
- University Of South Africa (Unisa)
ECS1601 ASSESSMENT 6 SEMESTER 2 2024
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10/13/24, 12:36 AM Assessment 6: Attempt reviewUNISA 2024 ECS1601-24-Y Online assessments Assessment 6
QUIZ
Started on Sunday, 13 October 2024, 12:18 AM
State Finished
Completed on Sunday, 13 October 2024, 12:31 AM
Time taken 13 mins 46 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Demand-pull inflation can be combated by …
a. raising interest rates.
b. lowering interest rates.
c. increasing government spending.
d. decreasing personal income tax.
Refer to section 10.4 of the prescribed textbook.
Question 2
Correct
Mark 1.00 out of 1.00
Cost-push inflation can be caused by …
a. an increase in profit margins, a decrease in productivity and the
impact of natural disasters.
b. an increase in investment spending and government spending.
c. a decrease in the cost of imported capital and intermediate goods.
d. a decrease in wages and salaries.
Refer to section 10.4 of the prescribed textbook.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=23137505&cmid=871352 1/10
,10/13/24, 12:36 AM Assessment 6: Attempt review
Question 3
Correct
Mark 1.00 out of 1.00
The table below shows the consumer price index (CPI) over several years for
South Africa.
Which of the following is true based on this data?
a. November 2016 is the base year.
b. Inflation rate (February 2019 vs February 2018) is 4,3%
c. Inflation rate (March 2019 vs March 2018) is 3.95%
d. Aggregate demand increased every year from March 2017 to March
2019.
Refer to section 10.2 of the prescribed textbook.
Question 4
Correct
Mark 1.00 out of 1.00
Which of the following best describes a difference between demand-pull
inflation and cost-push inflation?
a. 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.
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. 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.
Refer to section 10.4 of the prescribed textbook.
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,10/13/24, 12:36 AM Assessment 6: Attempt review
Question 5
Correct
Mark 1.00 out of 1.00
Which one of the following is the cause of demand-pull inflation?
a. a decrease in government spending
b. an increase in the cost of labour
c. a decrease in interest rates
d. the leftward shift of the AD curve
Refer to section 10.4 of the prescribed textbook.
Question 6
Correct
Mark 1.00 out of 1.00
The distribution effects of inflation are best described by …
a. borrowers benefiting at the expense of lenders.
b. creditors benefiting at the expense of debtors.
c. the poor benefiting at the expense of the rich.
d. the elderly benefiting at the expense of the young.
Refer to section 10.3 of the prescribed textbook.
Question 7
Correct
Mark 1.00 out of 1.00
Which one of the following is NOT an effect of higher inflation?
a. An increase in the cost of living.
b. An increase in the standard of living.
c. Redistribution of wealth from the lender to the borrower.
d. A decrease of the real value of existing savings.
Refer to section 10.3 of the prescribed textbook.
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, 10/13/24, 12:36 AM Assessment 6: Attempt review
Question 8
Correct
Mark 1.00 out of 1.00
Increased unemployment benefits and less incentive to work can be illustrated
by
a. a rightward shift of the aggregate supply curve.
b. a leftward shift of the aggregate supply curve.
c. a rightward shift of the aggregate demand curve.
d. a leftward shift of the aggregate demand curve.
Aggregate supply can be influenced by incentives that people face. For
instance, high taxes may discourage people from working, thereby lowering the
quantity of goods and services produced and reducing aggregate supply.
Similarly, an increase in unemployment benefits and less incentive to work will
reduce aggregate supply. Graphically, this is reflected by a leftward shift in the
aggregate supply curve. See table 9-2 on page 181.
Question 9
Correct
Mark 1.00 out of 1.00
When measuring unemployment, which of the following statements is/are true?
(a) According to the strict definition, unemployed refers to persons over 15
years old who are not working or self-employed, who were available for paid
employment or self-employment seven days before the interview and actively
sought paid employment and self-employment four weeks preceding the
interview.
(b) The expanded or broad definition excludes persons who have the mere
desire to find work, which implies it excludes discouraged workers.
(c) There is no difference between the strict and expanded definition of
unemployment.
a. Only a is correct.
b. Only b is correct.
c. Only c is correct.
d. All the options are correct.
e. None of the alternatives is correct.
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