1.
The economic problem arises from the coexistence of:
a. unlimited wants and limited money in circulation.
b. limited wants and limited resources.
c. unlimited wants and unlimited resources.
d. unlimited wants and limited resources.
2.
Microeconomics is a branch of economics that studies:
a. the determination of the gross domestic product
b. the behaviour of individual decision-making units in the economy
c. the impact of inflation in South Africa
d. the effects and consequences of the aggregate behaviour of all decision-making
units
3.
Macroeconomics is a branch of economics that studies
a. the determination of the gross domestic product
b. the behaviour of individual decision-making units in the economy
c. the impact of inflation in South Africa
d. the effects and consequences of the aggregate behaviour of all decision-making
units
4.
Opportunity cost is best defined as
a. the actual money expenditure incurred when a decision is made
b. the value of the best alternative sacrificed when a choice is made
c. the total value of all the alternatives given up when a choice is made
d. the value of time used to make a choice
5.
An economist decides to give up her job at a commercial bank, where she earns R800
000 per year. She is offered another full-time job for R850 000 per year or can work for
herself from home as a private consultant. What is the opportunity cost of working
from home?
a. Zero
b. R800 000
c. R850 000
d. R1 650 000
6.
A production possibility frontier shows
a. the maximum combination of inputs that can be used to produce output in a typical
economy
b. the maximum revenue that can be generated from the sale of output produced by
limited resources in an economy
c. the minimum quantities of commodities that can be produced from limited but fullyemployed resources in an economy
d. the maximum quantities of commodities that can be produced from limited but
fully-employed resources in an economy
7.
The diagram below shows an economy’s production possibilities for two goods:
aeroplanes and motor vehicles. Use this diagram to answer the question below
Choose the correct statement from the options below.
a. the opportunity cost of producing 0a motor vehicles is 0b aeroplanes
b. the production of both motor vehicles and aeroplanes appears to require similar
resources in similar proportions
c. the opportunity cost of producing one more motor vehicle is higher at f than at g
d. the opportunity cost of producing 0a motor vehicles is cb aeroplanes
8.
Use the diagram below, which shows production possibilities for beer and textbooks,
to answer this question.
At which point are no resources allocated to beer and all resources to textbooks
a. A
b. B
c. C
d. D
9.
The diagram below shows a society’s production possibility frontier for coffee mugs
and calculators. Use this information to answer this question.
Identify the most inefficient point in the production of coffee mugs and calculators
a. A
b. B
c. C
d. D
10.
The problem of economising is essentially one of deciding how to make the best use of
a. virtually unlimited resources to satisfy limited wants
b. virtually unlimited resources to satisfy virtually unlimited wants
c. limited resources to satisfy virtually unlimited wants
d. limited resources to satisfy limited wants
11.
In the simple circular flow of economic activity, goods and services flow via
a. factor markets to goods markets
b. factor markets from households to firms
c. goods markets from households to firms
d. factor markets from firms to households
12.
In the circular flow of economic activity, ________ households in ________ markets
represents ________ firms. Taxes and imports represent ________ the circular flow
a. expenditure by; goods; income to; injections into
b. expenditure by; factor; income to; withdrawals from
c. income to; factor; expenditure by; withdrawals from
d. income to; goods; expenditure by; injections into
13.
In the circular flow of income and spending, ie the basic flow of income and spending
between households and firms supplemented by the foreign, financial and
government sectors
a. exports are leakages from the circular flow
b. investment is a leakage from the circular flow
c. savings are injections into the circular flow
d. taxes are leakages from the circular flow
14.
Which of the following is a leakage from the circular flow of income and expenditure
in South Africa?
a. Defence expenditure by the South African government, via contracts with local
military suppliers
b. Government purchases of textbooks for state-run schools
c. The sale of export fruit to the European Union
d. A decision by a major supermarket chain to sell Danish beer
15.
South African imports largely comprise ________ goods. As a result, when
manufacturing expansion occurs in South Africa imports tend to ________. This tends
to lead to a current account ________ and foreign exchange shortages then require
the use of ________ policies.
a. capital; fall; deficit; restrictive
b. intermediate; fall; deficit; expansionary
c. intermediate; rise; surplus; restrictive
d. capital; rise; deficit; restrictive
16.
Which one of the following does not pertain to the factor markets?
a. Capital
b. Entrepreneurship
c. Money
d. Labour
17.
Which one of the following does not represent the income of a factor of production?
a. Rent
b. Money
c. Wages
d. Profit
18.
Which one of the following is NOT a factor of production
a. Money
b. Capital
c. Entrepreneurship
d. Labour
19.
Which one of the following is correct?
The South African economy is a
a. pure market economy
b. pure command economy
c. pure traditional economy
d. mixed economy
20.
Which one of the following is NOT a factor of production?
a. The service rendered by a dustman
b. A loan advanced by Standard Bank to a budding entrepreneur
c. A lawnmower purchased by a garden services operator
d. The service rendered by a computer technician
21.
Represent on a PPC: The quality of education increases
a. Curve shifts outwards
b. No Change
c. Curve shifts inwards
d. Curve rotates
22.
Represent on a PPC: The number of unemployed workers increases
a. Curve shifts outwards
b. No Change
c. Curve shifts inwards
d. Curve rotates
23.
Represent on a PPC: A new technique improves the efficiency of extracting copper
from ore
a. Curve shifts outwards
b. No Change
c. Curve shifts inwards
d. Curve rotates
24.
Represent on a PPC: A devastating earthquake destroys numerous production facilities
a. Curve shifts outwards
b. No Change
c. Curve shifts inwards
d. Curve rotates
25.
Match definition with the correct term: The next-best thing that must be forgone in
order to produce one more unit of a given product
a. Opportunity Cost
b. Utility
c. Economics
d. Marginal Analysis
26.
Match definition with the correct term: The pleasure, happiness, or satisfaction
obtained from consuming a good or service
a. Opportunity Cost
b. Utility
c. Economics
d. Marginal Analysis
27.
Match definition with the correct term: The social science concerned with how
individuals, institutions, and society make optimal (best) choices under conditions of
scarcity
a. Opportunity Cost
b. Utility
c. Economics
d. Marginal Analysis
28.
Match definition with the correct term: Making choices based on comparing marginal
benefits with marginal costs
a. Opportunity Cost
b. Utility
c. Economics
d. Marginal Analysis
29.
The unemployment rate in the South Africa was 26.6 percent in August 2016, is what
type of Economics
a. Freakonomics
b. Microeconomics
c. Macroeconomics
d. Qauntonomics
30.
A South African software firm discharged 15 workers last month and transferred the
work to India, is what type of Economics:
a. Macroeconomics
b. Microeconomics
c. Scarcity
d. Choice
31.
Refer to the below diagram to answer question
Flow (1) represents
a. Wage, rent, interest and profit income
b. Land, labour, capital and entrepreneurial ability
c. Goods and Services
d. Consumer expenditures
32.
Refer to the below diagram to answer question
Flow (2) represents
a. Wage, rent, interest and profit income
b. Land, labour, capital and entrepreneurial ability
c. Goods and Services
d. Consumer expenditures
33.
Refer to the below diagram to answer question
Flow (3) represents
a. Wage, rent, interest and profit income
b. Land, labour, capital and entrepreneurial ability
c. Goods and Services
d. Consumer expenditures
34.
Refer to the below diagram to answer question
Flow (4) represents
a. Wage, rent, interest and profit income
b. Land, labour, capital and entrepreneurial ability
c. Goods and Services
d. Consumer expenditures
35.
If the principal concern of economics is the question of how best to use society’s
resources, then economics would be irrelevant if:
a. We had unlimited wants
b. Economies were organised around command rather than market principles
c. Economies were organised around market rather than command principles
d. Resources were available in unlimited quantities
36.
Increases in the productivity of labour result partly from
a. The law of diminishing marginal returns
b. Improvements in Technology
c. Reductions in Wage Rates
d. Increases in the Quantity of Labour
37.
Rivalry and excludability are the main characteristics of
a. Capital Goods
b. Private Goods
c. Public Goods
d. Consumptions Goods
38.
The gross domestic product provides an estimate of society's evaluation of the relative
worth of goods and services because it
a. Takes into account the value of security transactions
b. Excludes public and private transfer payments
c. Includes indirect business taxes
d. Is a monetary measure
39.
Kabelo a South African who works in Zimbabwe's income will be added to the
a. GDP of SA and the GDP of Zimbabwe
b. GNI of both countries
c. GNI of South Africa and GDP of Zimbabwe
d. GNI of Zimbabwe and GDP of South Africa
40.
Workers at a clothing factory in Newcastle lose their jobs when the firm relocates to
Lesotho
a. Youth unemployment
b. Structural unemployment
c. Cyclical unemployment
d. Season unemployment