1.1 Economics concerns itself with:1. A systematic understanding of patterns of production, consumption and distribution of goods andservices.ii. A study of money, banking, capital formation and wealth.il. A study of how limited resources are used to satisfy unlimited human wants.iv. The study of the application of scarce means to a multitude of human wants.Which of the above statements can be associated with the broad subject matter studied in economics?a) None of them.b) All of them.c) Only statements i, ii and i.d) Only statements i, i and iv.1.2 The basic economic problems faced by a socialist economy are:a) Different from those faced by a mixed economy.b) Different from those faced by a market economy, but the same as those faced by a mixed economy.c) Similar to those faced by both a market and a mixed economy.d) Different from those faced by a market economy.prices will usually be greater than GDP atprices because of1.3 GDP ata) constant; current; inflationb) current; constant; inflationc) constant; current; depreciationd) current; constant; depreciation1.4 Which one of the following is the essential function of money?a) Medium of exchange (or means of payment).b) Store of value.c) Factor of production.d) Source of income.1.5 When the inflation rate is expected to exceed the target rate by a significant margin, the South AfricanReserve Bank (SARB) will tend to:a) Reduce the cost of credit to the banks.b) Increase the repurchase rate (repo rate).c) Purchase government bonds on the open market.d) Decrease the repurchase rate (repo rate).

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1.1 Economics concerns itself with: 1. A systematic understanding of patterns of production, consumption and distribution of goods and services. Ii. A study of money, banking, capital formation and wealth. ill. A study of how limited resources are used to satisfy unlimited human wants. iv. The study of the application of scarce means to a multitude of human wants. Which of the above statements can be associated with the broad subject matter studied in economics? a) None of them. b) All of them. c) Only statements i, il and i d) Only statements i, ii and iv.

1.1 Economics concerns itself with: 1. A systematic understanding of patterns of production, consumption and distribution of goods and services. Ii. A study of money, banking, capital formation and wealth. ill. A study of how limited resources are used to satisfy unlimited human wants. iv. The study of the application of scarce means to a multitude of human wants. Which of the above statements can be associated with the broad subject matter studied in economics? a) None of them. b) All of them. c) Only statements i, il and i d) Only statements i, ii and iv.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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