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School of Business
BCOM BACHELOR OF COMMERCE (NQF 7)
ECONOMIC SYSTEMS (ECSY101)
Assessment
Summative
Year
1-2025
Assessor
Jaco Bekker
Moderator
Gabriel Chipaumire
Total Marks
116 Marks
Contribution to Semester Mark
60%
Open Date
23 June 2025 09:00
Due Date
23 June 2025 12:00
Section A
Multiple Choice Questions
40 Marks
Section B
Short Essay Questions
76 Marks
Instructions to Candidates:
1.
Read each question carefully.
2.
You must answer all sections by typing it out on an appropriate Word document, including the answers to the
multiple choice type questions. Once completed, the answer sheet must be converted to PDF and uploaded to
the student portal. Make sure that all additional information is uploaded in a single Zipped folder.
3.
You need to obtain at least a minimum of 40% for your assessment result to be included in your semester mark.
If your semester mark is between 45% - 49%, you will be eligible for a supplementary (capped at a maximum of
50% and counting 100% towards your semester mark).
4.
NO LATE submissions will be accepted. If you encounter any difficulty with the student portal, immediately take a
screenshot, log a ticket (attention support), and attach your assessment to the ticket.
5.
You must follow the departmental formatting guidelines.
6.
You must write your name, surname, and student number on your script. A failure to do so will result in your script
not being marked.
7.
You may use the subject learner guide, or prescribed text book to assist you during the assessment.
8.
By submitting your answer sheet for marking, you declare the following:
a.
You are familiar with the AIE’s policies on academic dishonesty and plagiarism;
b.
Your submitted is your own original work. Where you have made use of someone else’s work, you have
duly referenced such work making using of the APA style of referencing;
9.
c.
You have not allowed, and will not allow any other student to copy your work; and
d.
You did not copy the work of another student.
Students that are dishonest will be subjected to disciplinary procedures.
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Section A
Multiple Choice Questions
Please write the question number together with your selected answer (only the alphabet number, e.g. A), on
your answer paper.
1.
Which of the following best defines economics in a commercial context?
(1 x 2 = 2)
a. The study of money and banking
b. The study of how resources are allocated in markets
c. The study of government policies
d. The study of consumer behavior
2. Scarcity exists because:
(1 x 2 = 2)
a. Resources are unlimited
b. People always want more than they have
c. Resources are limited while wants are unlimited
d. Governments restrict access to goods
3. Which of the following is an example of normative economics?
(1 x 2 = 2)
a. "The unemployment rate is 5%"
b. "Inflation is rising due to increased demand"
c. "The government should increase minimum wage"
d. "GDP grew by 3% last year"
4. Which of the following is NOT one of the three central economic questions?
(1 x 2 = 2)
a. What to produce?
b. How to produce?
c. Where to produce?
d. For whom to produce?
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5. Total production, total income, and total spending in an economy are related because:
(1 x 2 = 2)
a.
b.
c.
d.
They all measure different aspects of economic activity
They are independent of each other
They must always be equal in a closed economy
They only apply to developed economies
6. Households and firms make independent decisions that do not affect each other.
(1 x 2 = 2)
a. True
b. False
7. The foreign sector interacts with the domestic economy through trade and investment.
(1 x 2 = 2)
a. True
b. False
8. The financial sector plays no role in economic activity.
(1 x 2 = 2)
a. True
b. False
9. One of the five main macro-economic objectives is price stability.
(1 x 2 = 2)
a. True
b. False
10. Recent economic trends in South Africa show:
(1 x 2 = 2)
a. High inflation and low employment
b. Low inflation and high employment
c. No inflation and full employment
d. High inflation and high employment
11. South Africa’s global economic links include:
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(1 x 2 = 2)
a. Trade agreements with BRICS countries
b. No international trade
c. Only exports to Europe
d. No foreign investment
12. Economic theory is used to:
(1 x 2 = 2)
a. Explain economic behaviour
b. Predict future economic trends
c. Develop policies
d. All of the above
13. Ceteris paribus means:
(1 x 2 = 2)
a. “All other things being equal”
b. “Everything changes”
c. “Only one factor matters”
d. “Nothing is constant”
14. What does Gross Domestic Product (GDP) measure?
(1 x 2 = 2)
a. The total spending in an economy
b. The total value of final goods and services produced within a country
c. The total income earned abroad by a country’s residents
d. The total exports of a country
15. Which of the following is NOT a component of GDP?
(1 x 2 = 2)
a. Government spending
b. Household consumption
c. Net foreign earnings
d. Business investment
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16. Calculate the GDP for a given year, if South Africa reports Consumption = R2.500bn, Government
spending = R800bn, Investment = R600bn, Imports = R400bn and Exports = R500bn.
(1 x 2 = 2)
a. R3.5bn
b. R3.9bn
c. R4.0bn
d. R4.5bn
17. Ethics and governance are irrelevant to economic success.
(1 x 2 = 2)
a. True
b. False
18. Macroeconomics primarily examines:
(1 x 2 = 2)
a.
b.
c.
d.
How firms set their prices
National economic trends and policies
Individual purchasing decisions
The stock market
19. Macroeconomic objectives aim to promote overall economic stability.
(1 x 2 = 2)
a. True
b. False
20. Economic policies are always universally accepted by all economists.
(1 x 2 = 2)
a. True
b. False
SUB TOTAL: [40]
Section B
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Question 1
In bullet form, shortly describe three (3) characteristics of each of the four main primary factors of production as
well as the 5th recognised factor of production of Technology within an economic system.
(20 x 1 = 20)
Question 2
Describe how the Financial System impacts the Economic Flow within a country.
(6 x 1 = 6)
Question 3
Analyse South Africa’s current macro-economic performance, with reference to each of the five main macroeconomic objectives. Only discuss one (1) relevant statistic for each of the objectives.
(5 x 6 = 30)
Question 4
Use below table as the basic principle of how GDP is calculated.
4.1 – 4.8
Either recreate the table in your answer sheet to complete your answers, or just write down the
answers next to the appropriate question number on your answer sheet.
(8 x 2 = 16)
4.9
Calculate the GDP using the value-added method.
(1 x 2 = 2)
4.10
Explain why the value of sales for the jewellery store is the same as the total value added.
(2 x 1 = 2)

Assume the input cost for the 1st participant is R0 (zero rand).

The final product being sold to consumers is clothing.
Participant
Value of Sales
Basic components making up the
Value
sales value (you can use fictitious
Added
numbers)
Cotton Farming
R3bn
4.1
4.5
Textile Manufacturing
R4bn
4.2
4.6
Clothing Manufacturer
R5.3bn
4.3
4.7
Clothing Retailer
R7bn
4.4
4.8
SUB TOTAL: [76]
TOTAL: [116]