This multiple-choice examination paper consists of 20 pages plus instructions for completion of a markreading sheet.
The question paper consists of 70 multiple-choice questions that must all be answered on the markreading sheet, which is supplied. Carefully follow the instructions for the completion of the mark-reading
sheet. Each question will be worth 1,4 marks, so that the paper carries a total of 100 marks.
NB! NB! NB!
Students registered for ECS1016 must use unique number 499058 on the mark-reading sheet.
Students registered for REC101X must use unique number 478021 on the mark-reading sheet.
Place the completed mark-reading sheet in your answer book. DO NOT STAPLE IT TO THE ANSWER
BOOK.
Please complete the attendance register on the back page, tear off and hand to the invigilator.
All students must ensure that the page numbers of this examination paper (pages 1–20) follow each other
correctly. Please report to the invigilator if your paper has any blank pages or if pages are printed
unclearly.
1
[TURN OVER]
ECS1016
OCTOBER/NOVEMBER 2010
1.
The economic problem arises from the coexistence of .…
[1]
[2]
[3]
[4]
2.
In every economic system, choices must be made because resources are .…
[1]
[2]
[3]
[4]
3.
unlimited wants and limited money in circulation.
limited wants and limited money in circulation.
unlimited wants and limited resources.
limited wants and unlimited resources.
infinite, but economic wants are finite.
finite, but economic wants are limited.
unlimited, but economic wants are limited.
finite, but economic wants are insatiable.
Choose the correct option.
[1]
[2]
[3]
[4]
Macroeconomics is a branch of economics that studies the behaviour of individual decisionmaking units in the economy.
The production of maize in South Africa is a microeconomic issue.
The statement “An increase in the population will shift the demand curve for goods and
services to the right, ceteris paribus” is an example of a normative statement.
The question "Is the total production of goods and services in the economy greater this year
than last year?" is an example of a microeconomic problem.
Questions 4 and 5 are based on figure 1 that represents production possibilities curves.
Figure 1
RADIOS
A
B
C
D
E
Page 2 of 21
COMPUTERS
ECS1016
OCTOBER/NOVEMBER 2010
4.
The opportunity cost of increasing the production of radios (referring to production possibilities curve
AD) would be the greatest as we move .…
[1]
[2]
[3]
[4]
5.
The outward shift of the production possibilities curve from AD to AE could arise from .…
[1]
[2]
[3]
[4]
6.
[2]
[3]
[4]
The number of foreign visitors to South Africa during a particular year is an example of a
stock variable.
Wealth is a flow concept while income and capital are stock concepts.
Gold reserves held by the SARB are a flow while gold production is a stock.
Unemployment is a stock concept while the unemployment rate is a flow.
Which one of the following is an incorrect description of the function of households?
[1]
[2]
[3]
[4]
9.
income, spending and saving.
spending, production and saving.
income, saving and investment.
income, spending and production.
Which one of the following options is correct?
[1]
8.
a decrease in the level of unemployment.
an improvement in the technology used to produce radios.
an improvement in labour productivity in producing computers.
None of the above
Economics can be described in terms of three major flows. These are total .…
[1]
[2]
[3]
[4]
7.
from point B to A.
from point C to B.
from point D to C.
None of the above
Households are the basic decision-making units in an economy.
Households are the basic productive units in the economy.
Households consume goods and services.
Households are the owners of factors of production.
If an increase in the price of blue jeans leads to an increase in the demand for dresses, then blue
jeans and dresses are .…
[1]
[2]
[3]
[4]
substitutes.
complements.
Giffen goods.
inferior goods.
Page 3 of 21
ECS1016
OCTOBER/NOVEMBER 2010
10.
Which of the following shifts the demand for watches to the right?
[1]
[2]
[3]
[4]
11.
Which of the following will cause the demand curve of coffee to shift to the left?
[1]
[2]
[3]
[4]
12.
a decrease in the price of watches
a decrease in consumers' income if watches are a normal good
a decrease in the price of watch batteries.
an increase in the price of watches
a decrease in the price of milk
a decrease in the price of coffee
an increase in the price of tea
a decrease in the price of tea
Which one of the following is correct regarding supply?
[1]
[2]
[3]
[4]
Quantity supplied is the independent variable in a supply schedule.
Supply refers to the quantity of a good, which is available in the shop on a particular day.
Supply refers to the quantities of a good or service that producers plan to sell at each
possible price during a certain period.
An increase in the price of apples will cause the supply curve of apples to shift leftwards.
Question 13 is based on figure 2 that depicts different market supply curves.
Figure 2
P
S1
S
S2
a
b
c
e
d
Q
0
Page 4 of 21
ECS1016
OCTOBER/NOVEMBER 2010
13.
Which one of the statements concerning figure 2 is correct?
[1]
The movement from point d to point b on curve S can be the result of an increase in wages
and salaries of workers.
The movement from point b on curve S to point c on curve S2 can be the result of a
technological improvement.
An increase in labour productivity can cause a movement from point b on curve S to point a
on curve S1.
The movement from point b on S to point e on S2 can be the result of a change in the price of
the product.
[2]
[3]
[4]
Question 14 is based on figure 3.
Figure 3
P
S
a
b
c
e
D
Q
0
14.
Which one of the following alternatives is correct?
[1]
[2]
[3]
[4]
15.
Excess supply is illustrated by the difference between point a and point c.
Excess supply is illustrated by the distance between point c and point e.
Equilibrium is at point e, where demand is equal to supply.
Equilibrium is at point e, where the quantity demanded is equal to the quantity supplied.
A good way of distinguishing between excess demand and scarcity is as follows:
[1]
[2]
[3]
[4]
Shortages result from price controls, but scarcity results from sellers holding back output.
We can eliminate a shortage by raising the price, but scarcity cannot be eliminated.
Shortage means that we cannot have all we want at a zero price, while scarcity means that
we cannot have all we want at any given price.
At a high enough price, there is no scarcity, but shortages continue to exist even at high
prices.
Page 5 of 21
ECS1016
OCTOBER/NOVEMBER 2010
16.
Table 1 shows the quantity demanded and supplied per month of apartments in the central business
district (CBD) of Johannesburg in 2008.
Table 1
Demand
Supply
Price (R)
Quantity
Price (R)
Quantity
340
10
340
90
330
20
330
80
320
30
320
70
310
40
310
60
300
50
300
50
290
60
290
40
280
70
280
30
270
80
270
20
260
90
260
10
Suppose quantity demanded increases by 20 units at each price whilst quantity supplied falls by 20
units at each price. What is the new equilibrium quantity and corresponding price?
[1]
[2]
[3]
[4]
17.
If the equilibrium price and the quantity of curtains exchanged fall, it is likely that the ….
[1]
[2]
[3]
[4]
18.
The quantity is 50; the price is R300.
The quantity is 40; the price is R310.
The quantity is 50; the price is R320.
The quantity is indeterminate; the price is R260.
demand for curtains has increased.
demand for curtains has decreased.
supply of curtains has decreased.
supply of curtains has increased.
Assume that beef and leather are complements in production. The price of beef increases because
of a decrease in the supply of beef, ceteris paribus.
[1]
[2]
[3]
[4]
The demand curve and the supply curve of leather will shift.
The supply curve of leather will shift to the right with an accompanying decrease in the
equilibrium price and an increase in the equilibrium quantity of leather.
The supply curve of leather will shift to the left with an accompanying increase in the
equilibrium price and a decrease in the equilibrium quantity of leather.
The demand curve of leather will shift to the left with an accompanying increase in the
equilibrium price and a decrease in the equilibrium quantity of leather.
Page 6 of 21
ECS1016
OCTOBER/NOVEMBER 2010
19.
If you observed the equilibrium price of a good decreasing and the equilibrium quantity increasing, it
would most likely be caused by .…
[1]
[2]
[3]
[4]
20.
Wages of train drivers increase. At the same time, incomes of consumers generally increase. In the
market for train rides, we should expect to see curves shifting. The supply curve will …. and the
demand curve will …. Assume train rides are viewed as a normal good.
[1]
[2]
[3]
[4]
21.
increase – be uncertain.
decrease – be uncertain.
be uncertain – increase.
be uncertain – decrease.
If both supply and demand fall, but supply fell more than demand, the result would be ….
[1]
[2]
[3]
[4]
23.
shift to the left – shift to the left.
shift to the left – shift to the right.
shift to the right – shift to the left.
shift to the right – shift to the right.
As a result of the simultaneous increase in the wages of train drivers and of consumer incomes, we
would expect that the price would .…, while the quantity of bus rides would .…
[1]
[2]
[3]
[4]
22.
a decrease in demand.
an increase in supply.
an increase in demand.
a decrease in supply.
a higher price and a lower equilibrium quantity.
no change in the price and a lower equilibrium quantity.
a lower price and a greater equilibrium quantity.
a higher price and a greater equilibrium quantity.
When government sets a price for a certain product at a level lower than the market price, it will ….
[1]
[2]
[3]
[4]
result in excess supply.
prevent the market mechanism from allocating the available quantity to consumers.
result in new firms entering the industry.
lead to competition between suppliers resulting in upward pressure on the fixed price.
Page 7 of 21
ECS1016
OCTOBER/NOVEMBER 2010
Question 24 is based on figure 4.
Figure 4
D
P
S
100
80
60
40
20
D
S
0
24.
Choose the incorrect option.
[1]
[2]
[3]
[4]
25.
To be effective a minimum price will have to be set at R80.
Black-market activities will develop at an effective maximum price of R80.
Excess supply will develop at a price of R80.
At a price of R60, excess supply and excess demand will be equal to zero.
What is the correct relationship between price elasticity of demand and total revenue?
[1]
[2]
[3]
[4]
26.
Q
If the good is price elastic, total revenue can increase by reducing the price.
If the good is inelastic, total revenue can increase by reducing the price.
If the good is perfectly inelastic, total revenue can increase by reducing the price.
If the good is unitary elastic, total revenue decreases if you increase the price.
The National Energy Regulator of South Africa (NERSA) approved electricity tariff increases of
about 25% with effect from 1 April 2010. What do you think will most likely happen to the total
quantity of electricity demanded and total revenue of ESKOM after a year?
[1]
[2]
[3]
[4]
Total revenue will increase since the quantity of electricity demanded is relatively price
inelastic.
Quantity demanded is price elastic, so total revenue will fall.
Quantity demanded is unitary elastic and therefore total revenue will remain unchanged.
Quantity demanded is perfectly elastic, so total revenue will increase.
Page 8 of 21
ECS1016
OCTOBER/NOVEMBER 2010
27.
Tickets for the 2010 FIFA World Cup match between Algeria and Slovenia on 13 June 2010 at the
Peter Mokaba stadium sold slowly. If the price elasticity of demand for these tickets is estimated to
be 1,5, what should the Local Organising Committee have done to increase tickets sales and
maximise revenue? They should have .…
[1]
[2]
[3]
[4]
28.
If the demand for a commodity is perfectly elastic, how much should the percentage change in price
be for a given percentage change in quantity demanded?
[1]
[2]
[3]
[4]
29.
inelastic.
elastic.
perfectly inelastic.
unitary elastic.
The value of the percentage change in quantity demanded owing to a percentage change in
income is calculated to be equal to -2. This good is a/an ….
[1]
[2]
[3]
[4]
31.
Price change should be equal to infinity.
Price change should be equal to zero.
Price change should be equal to change in quantity demanded.
Price change should be greater than the change in quantity demanded.
If the percentage change in quantity demanded is equal to the percentage change in price, then
demand is said to be .…
[1]
[2]
[3]
[4]
30.
increased the price.
reduced the price.
maintained the price at the current level.
issued them to the surrounding communities free.
complementary good.
normal good.
inferior good.
substitute good.
Assume that good A and good B currently sell at the same price. Good A has a more inelastic
demand curve than good B has. If both goods A and B experience a 10% increase in price, then .…
[1]
[2]
[3]
[4]
good A will have a greater change in total revenue than good B will.
good B will experience a greater increase in total expenditures than good A will.
we cannot determine what will happen to the total revenues for good A compared to good B.
good B will experience a greater change in total revenue than good A.
Page 9 of 21
ECS1016
OCTOBER/NOVEMBER 2010
32.
Kumi consumes both apples and bread. Let Pa be the price of an apple and Pb the price of a loaf of
bread. TUa is her total utility of apples and TUb her total utility of bread. MUa is her marginal utility of
apples and MUb her marginal utility of bread. When Kumi is in equilibrium, .…
[1]
[2]
[3]
[4]
33.
If income is fully spent, and marginal utility per rand spent is equal for all goods, then ….
[1]
[2]
[3]
[4]
34.
decreases and total utility increases.
decreases and total utility decreases.
increases and total utility increases.
increases and total utility decreases.
Collin consumes 35 apples and 14 bread rolls a week. Apples cost R1 each and bread rolls costs
R2 per bread roll. Collin’s marginal utility of his 35th apple …
[1]
[2]
[3]
[4]
37.
beyond a certain point, total utility of hamburgers decreases as income increases.
the price of two hamburgers is less than twice the price of one.
Jacob will enjoy his second hamburger less than the first.
the total utility of one hamburger exceeds the total utility of two hamburgers.
Normally, as the quantity of a good consumed increases, marginal utility .…
[1]
[2]
[3]
[4]
36.
marginal utility is maximised.
the proportion of income spent on each good must be equal.
total utility is maximised.
a consumer could not be better off even with a greater income.
Diminishing marginal utility means that .…
[1]
[2]
[3]
[4]
35.
MUa/TUa = MUb/TUb.
MUa/Pb = MUb/Pa.
TUa/Pb = Tub/Pa.
MUa/Pa = MUb/Pb.
equals the marginal utility of his 14th bread roll.
is half the marginal utility of his 14th bread roll.
is twice the marginal utility of his 14th bread roll.
is such that his total utility of apples equals his total utility of bread.
Fred has R300 to spend on French fries and hamburgers. The price of French fries is R15 per
serving. Hamburgers sell at a price of R30 each. Which of the following possibilities is not in Fred’s
budget set?
[1]
[2]
[3]
[4]
five hamburgers and 10 servings of fries
two hamburgers and 16 servings of fries
one hamburger and 18 servings of fries
None of the above combinations
Page 10 of 21
ECS1016
OCTOBER/NOVEMBER 2010
38.
Mary finds that the marginal utility of a compact disc is 300 and the marginal utility of a cassette is
100. The price of a compact disc is R150 and the price of a cassette is R50. Assume Mary spends
all her income. Mary should .…
[1]
[2]
[3]
[4]
39.
To maximise total utility, a consumer equates the .…
[1]
[2]
[3]
[4]
40.
R10
R 40
R 50
R0,10
As before, Thomas produces 100 glasses of home-brew beer with an average total cost of 0,50
cents per glass and an average variable cost of 0,40 cents in a perfectly competitive market.
Suppose he decides to increase his production to 120 glasses of home-brew beer for today, what
will his total fixed cost be now?
[1]
[2]
[3]
[4]
43.
wages that the owner could have earned by working for someone else
wages paid to part-time workers
cost of raw materials purchased now for use later
interest paid to a bank on a business loan.
Thomas produces 100 glasses of home-brew beer with an average total cost of 0,50 cents per glass
and an average variable cost of 0,40 cents in a perfectly competitive market. What is Thomas’s total
fixed cost?
[1]
[2]
[3]
[4]
42.
total utility of each good.
marginal utility of each good.
the total utility per rand spent on each good.
the marginal utility per rand spent on each good.
Which of the following is an example of an explicit cost?
[1]
[2]
[3]
[4]
41.
increase her consumption of cassettes.
not change her consumption of cassettes and compact discs.
increase her consumption of compact discs.
decrease the price of cassettes.
R50
R10
R2
R48
Which of the following could shift a firm’s average variable-cost curve upward?
[1]
[2]
[3]
[4]
an increase in labour productivity
a decrease in labour productivity
an increase in fixed cost
a decrease in the demand for the product that the firm produces
Page 11 of 21
ECS1016
OCTOBER/NOVEMBER 2010
September Showers Gauteng Inc produces umbrellas for the rainy season in a perfectly competitive
market. Study table 2 to answer questions 44 to 46.
Table 2
Data for September Showers Gauteng Inc
Umbrellas
Total cost
0
10
1
15
2
24
3
39
4
60
5
85
44.
The total fixed cost of producing an umbrella at September Showers Gauteng Inc is ….
[1]
[2]
[3]
[4]
45.
September Showers Gauteng Inc’s marginal cost for producing the fourth umbrella is ….
[1]
[2]
[3]
[4]
46.
0.
5.
10.
15.
Diseconomies of scale in a perfectly competitive market results when ….
[1]
[2]
[3]
[4]
48.
21.
39.
60.
15.
The average variable cost for producing the first umbrella is ….
[1]
[2]
[3]
[4]
47.
0.
5.
10.
15.
unit cost rises as output decreases.
average variable cost decreases.
diminishing marginal product occurs.
unit cost rises as output increases.
Which of the following is false with regard to an economic profit in a perfectly competitive market?
[1]
[2]
[3]
[4]
Economic profit equals total revenue minus total cost.
Economic profit excludes implicit cost.
Economic profit is any profit greater than normal profit.
Firms attempt to maximise economic profit.
Page 12 of 21
ECS1016
OCTOBER/NOVEMBER 2010
49.
If average revenue equals average total cost in a perfectly competitive market, then .…
[1]
[2]
[3]
[4]
economic profit is zero.
average revenue is maximised.
economic profit is maximised.
total revenue is maximised.
Study figure 5 to answer questions 50 and 51.
Figure 5
Price
in rand
MC
ATC
120
100
95
90
80
AVC
60
50
D=AR=MR
44
40
20
0
50.
10 12
Q
20
The perfectly competitive firm in figure 5 should .…
[1]
[2]
[3]
[4]
produce 10 units of output.
produce 12 units of output.
produce 5 units of output.
close down.
Page 13 of 21
ECS1016
OCTOBER/NOVEMBER 2010
51.
The perfectly competitive firm in figure 5 .…
[1]
[2]
[3]
[4]
records a short-run economic profit.
is suffering a short-run economic loss.
is operating in the long term.
records normal profit in the short-run.
Study figure 6 to answer questions 52 and 53.
Figure 6
Price
in rand
ATC
MC
S
M
P
W
U
D=AR=MR
AVC
X
J
Z
K
0
52.
B
C
Q
In order to maximise profit or minimise losses in a perfectly competitive market, the firm in figure 6
should produce .…
[1]
[2]
[3]
[4]
53.
A
A units.
B units.
C units.
more than C units.
The profit-maximising firm in a perfectly competitive market in figure 6 .…
[1]
[2]
[3]
[4]
has an economic profit per unit equal to the distance UW.
has an economic profit per unit equal to the distance SX.
has an economic loss per unit equal to the distance SX.
records normal profit in the short-run.
Page 14 of 21
ECS1016
OCTOBER/NOVEMBER 2010
54.
Which is true with regard to the shutdown point and the break-even point for a perfectly competitive
firm?
[1]
[2]
[3]
[4]
55.
Which of the following is not a condition of long-run equilibrium for a perfectly competitive firm?
[1]
[2]
[3]
[4]
56.
[2]
[3]
[4]
many firms are producing differentiated products with complete flows of information and no
barriers to entry.
homogenous products are produced by a single firm whose long-run economic profits are
zero.
homogenous products are produced by many firms and information flows are complete but
with no control over price.
there is only one firm producing differentiated products and colluding with consumers.
In monopolistic competitive markets, ….
[1]
[2]
[3]
[4]
58.
Price is equal to the long-run marginal cost.
Price is equal to the minimum long-run average revenue.
Price is equal to the minimum long-run average cost.
Economic profit is positive in the short run.
In a perfectly competitive market, …
[1]
57.
The shutdown point is at the minimum average variable cost and the break-even point is at
the minimum average total cost.
They are two names for the same point.
The shutdown point is at the minimum average total cost and the break-even point is at the
minimum average variable cost.
The shutdown point is at the minimum average variable cost and the break-even point is at
the minimum average fixed cost.
there are many firms, no barriers to entry, and incomplete information with a market demand
curve that is downward sloping.
there are positive economic profits, some control over prices, complete information flows and
zero economic profits in the long-run.
there is free entry, some control over the price and collusion among firms to control that
price.
firms think their actions cannot be detected and they produce heterogeneous products while
facing a perfectly elastic or horizontal demand curve.
In which one of the following markets can we expect that there is often collusion regarding control
output?
[1]
[2]
[3]
[4]
in air force industries across the world
in many of Africa’s road construction industries
in crude oil-producing Arab countries
in the electricity production sector of South Africa
Page 15 of 21
ECS1016
OCTOBER/NOVEMBER 2010
59.
Which one of the following statements is correct?
[1]
[2]
[3]
[4]
60.
Which one of the following statements is incorrect regarding the differences between the labour
market and the goods markets?
[1]
[2]
[3]
[4]
61.
A good can be labelled as being differentiated from another only after its shape or content is
modified.
Ultimately, the consumer makes the decision about whether or not a good is differentiated.
Advertising brands by supermarket chain stores are often aimed at preventing product
differentiation.
The aim of product differentiation is always to charge only one price for the different types of
goods or services.
As in other markets, the labour market has suppliers, buyers and prices in the form of the
labour force, employers and wages, respectively.
Labour is often more segmented and intrinsically heterogeneous than other markets are, and
this can lead to short-term oversupplies and undersupplies in some occupations or
geographical areas.
Labour can be also be transferred to other people, especially when skills and education are
transferred.
Labour is often not tradable on a daily basis because in many cases, medium- to long-term
contracts are signed, and this may prevent the sale of labour at its best price.
The shift of the labour supply curve will not be effected by .…
[1]
[2]
[3]
[4]
an increase in wages.
an increase in new births and a decrease in mortality rates.
new managers who most people find very pleasant to work for.
a lower number of Grade 12 graduates entering the labour market for the first time.
Page 16 of 21
ECS1016
OCTOBER/NOVEMBER 2010
Use figure 7 to answer questions 62 to 64.
Figure 7
Wage
rate
Wage
rate
(R/unit)
(R/unit)
(a)
(b)
S
We = MCL
We
We
D
Labour demand
N
N
Ne
Quantity of labour supplied per period
62.
Regarding the above diagram, which one of the following statements is correct?
[1]
[2]
[3]
[4]
Diagram (a) represents the demand for and supply of labour of a particular firm in a perfectly
competitive market.
Diagram (b) represents only the demand for labour of a particular firm in a monopolistic
market.
Both diagrams (a) and (b) represent the demand for and supply of labour in a monopolistic
market.
Diagram (b) represents the demand for and supply of labour of a particular firm at a perfectly
competitive wage rate of W e.
Page 17 of 21
ECS1016
OCTOBER/NOVEMBER 2010
63.
In figure 7, ….
[1]
[2]
[3]
[4]
64.
Irrespective of how many people are employed by the individual firm the supply of labour
equals exactly the additional cost of hiring one extra unit of labour
the marginal benefit of hiring more labour for a particular firm equals We, and this does not
equal the supply of labour to the firm.
the individual firm must always pay above the wage rate We to attract the most qualified
workers.
at wage rate We, the marginal cost of labour (MCL) of an individual firm is greater than the
average cost of labour.
In diagram (b) of figure 7, ….
[1]
[2]
[3]
[4]
if the individual firm hires labour above Ne, the marginal contribution of this labour unit to
total revenue will be smaller than the going market wage.
for the firm to remain in the competitive market, its demand for labour must be equal to the
marginal cost (MC) of labour.
the demand for labour of the individual firm is equal to marginal revenue (MR) that is
generated by each labour unit.
the marginal revenue product (MRP) of each labour unit can be derived from multiplying the
price of labour (that is, We) by the marginal physical product (MPP) that is contributed by
each labour unit.
Complete table 3 to answer questions 65 to 67.
Table 3: The labour productivity of a CD-player producing firm operating in a perfectly competitive
market
Number of
Total physical product Marginal physical Price of CD
Marginal revenue
workers
(number of CD players
product
players
product
per day)
(number of CD
(R)
(R per day)
players per day)
(N)
0
1
2
3
4
5
65.
(TPP)
0
10
16
20
22
21
(MPP)
0
(P)
R200
R200
R200
R200
R200
R200
(MRP)
0
Given the data in table 3, which one of the following statements is correct?
A profit maximising firm will .…
[1]
[2]
[3]
[4]
produce 16 CD players if it hired two workers at a market wage rate of R200.
hire three workers to produce 20 CD players if the market wage rate was R800.
hire a third unit of labour as long as the market wage rate remained above R1 200.
hire a fourth worker only if the market wage was above R800.
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66.
From table 3, the fifth worker’s marginal contribution to the firm total revenue is .…
[1]
[2]
[3]
[4]
67.
From table 3, the fourth worker contributes ….
[1]
[2]
[3]
[4]
68.
R200.
R21.
– R200.
none of the above.
22 CD players to the firm’s total CD player output per day.
10 CD players to the firm’s total CD player output per day.
four CD players to the firm’s total CD player output per day.
two CD players to the firm’s total CD player output per day.
Which one of the following statements is incorrect?
The demand for labour in a perfectly competitive market ….
[1]
[2]
[3]
[4]
will increase if the price of production output increases.
will decrease if automated machines do the same work and labour become expensive.
will increase if the workers’ productivity is improved through better skills.
will increase if the number of employers is increased.
Use the following figure to answer question 69:
Figure 8
Wage
rate
(per unit)
S
We
R200
D
R50
Quantity of domestic workers supplied per day
10
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69.
In figure 8, the workers will not seek other jobs as long as they receive total transfer earnings of .…
[1]
[2]
[3]
[4]
70.
R750.
R10 000.
R2 000.
R1 250.
Imagine that the executive committee of the Psychological Society of South Africa (PsySSA) passed
a rule in their constitution to restrict their membership of foreigners and their practice as clinical
psychologists in the country. The labour market effects of this decision would be ….
[1]
[2]
[3]
[4]
an increase in the employment levels and wages of practising clinical psychologists.
a decrease in the employment levels and wages of practising clinical psychologists.
an increase in the wages of practising psychologists and a decrease of employment levels in
the sector.
an decrease in the wages of practising psychologists and an increase of employment levels
in the sector.
TOTAL: 100
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Unisa 2010
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