ECONOMICS MULTIPLE CHOICES (ONLY SELECT THE CORRECT OPTION)

Question 1

The price elasticity of supply measures ...

• A.the responsiveness of the quantity supplied to changes in the wage level.
• B.how often the price of a good changes.
• C.how sensitive the quantity supplied is to changes in the price of that particular good
• D.the responsiveness of the quantity demanded to changes in price.

Question 2

Which one of the following is a macroeconomic objective that may be expected to also contribute to an increase in employment?

• A.A decrease in the wage rate in the country
• B.An increase in economic growth
• C.An increase in the price level
• D.An increase in the wage rate in the country

Question 2

Which one of the following is a macroeconomic objective that may be expected to also contribute to an increase in employment?

• A.A decrease in the wage rate in the country
• B.An increase in economic growth
• C.An increase in the price level
• D.An increase in the wage rate in the country

Question 3

The THREE methods to calculate the GDP to avoid double counting are ...

[1] the expenditure approach.

[2] the nominal approach.

[3] the production method.

[4] the income method.

[5] the real approach.

• A.only 2, 4 and 5 are correct
• B.only 1, 2 and 5 are correct
• C.only 1, 3 and 4 are correct
• D.only 1, 2 and 4 are correct

Question 5

Which of the following definitions is correct?

• A.Nominal gross domestic product refers to the production that took place within the borders of a country during a particular period, measured at fixed prices.
• B.Nominal gross national income refers to the total income of South African citizens during a particular period, measured at current prices.
• C.Real gross domestic product per capita refers to the production that took place within the borders of a country during a particular period, measured at fixed prices.
• D.Real gross national income refers to the total production that took place within the borders of a country during a particular period, measured at fixed prices.

Question 6

An example of an intermediate good is ...

• A.a textbook that is sold to a Unisa student.
• B.mango juice that is sold in a restaurant in the Kruger Park.
• C.a wooden statue produced by an informal trader that is sold to an international tourist.
• D.mangos that are sold to a factory that produces mango chutney.

Question 7

The consumer price index (CPI) provides an indication of the change in the ...

[1] nominal value of consumer goods and services produced.

[2] real value of consumer goods and services produced.

[3] prices of consumer goods and services.

• A.only 3 is correct
• B.only 1 and 2 are correct
• C.1, 2 and 3 are correct
• D.only 1 and 3 are correct

Question 9 of 25 2 Points The question is based on the following figure: Cumulative % of income Country Z Country Y Cumulative % of population Based on the figure, which one of the following statements is correct? OA. Income distribution in country Y is more unequal than in country Z. OB. Income distribution in country Z is more unequal than in country Y