QUESTION 2

Which of the following is incorrect regarding factors of production?

[1] Labour includes the efforts, abilities, and skills of people in the production of goods and services.

[2] An entrepreneur is a risk taker in search of profits and does something new with existing resources.

[3] A minibus taxi used by hotel to transport its guest from and to airport is an example of capital.

[4] Money is an important part of production factors, and without money, firms will not be able to produce goods and services.

QUESTION 3

Which of the following is incorrect regarding factors of production?

[1] Labour includes the efforts, abilities, and skills of people in the production of goods and services.

[2] An entrepreneur is a risk taker in search of profits and does something new with existing resources.

[3] A minibus taxi used by hotel to transport its guest from and to airport is an example of capital.

[4] Money is an important part of production factors, and without money, firms will not be able to produce goods and services.

QUESTION 4 Which of the following is NOT a scarce production input?

[1] land available for residential housing

[2] factories that produce fabric masks

[3] money to buy tools and pay workers

[4] people available to work or start a business

QUESTION 5

The circular flow of income and spending reveals that an increase in South African exports will...

[1] increase spending on South African imports by more than the spending on exports.

[2] increase income to South African economy and increase income to South African producers of goods and services.

[3] increase income to foreign firms and increase income to foreign factors of production.

[4] decrease output and income in the rest of the world.

9. Which of the following statements concerning money is correct?

[1] The value of money is not based on the confidence that both government and monetary authorities will be able to control the supply to achieve stability and that the purchasing power does not fall.

[2] Paper money was developed since specialisation between countries led to increases in trade, causing the use of coin to be inconvenient as this was difficult to handle and not safe to transport.

[3] Credit cards are money because they function as a medium of exchange.

[4] Electronic money is another form of money as it can be used as a means of payments

QUESTION 10 Which of the following statements is incorrect regarding the quantity of money?

[1] The quantity of money is determined by the interaction of the demand for money and interest rate.

[2] If the interest rates are high, the quantity of money demanded will tend to low.

[3] If interest rates are low, the quantity of money demanded will tend to be high.

[4] There is a positive relationship between interest rates and the quantity of money demanded.