Economics > STUDY GUIDE > ECS1601 ASSIGNMENT 1-4 ANSWERS 2019 Semester 2(A+ Guide) (All)
ECS1601 ASSIGNMENT 1-4 ANSWERS 2019 Semester 2(A+ Guide)/ECS1601 ASSIGNMENT 1-4 ANSWERS 2019 Semester 2/In this tutorial letter we provide you with the answers to the multiple-choice questions in Assi... gnments 01 to 04, with brief explanations where necessary. In most cases, however, we merely refer you to the prescribed textbook and/or the study guide. If you have any questions about the answers that are provided, please discuss them with your fellow students and your e-tutor on the e-tutor website. All references, unless otherwise indicated, are to the prescribed textbook: Mohr, P & Associates. 2015. Economics for South African students. 5th edition. Pretoria: Van Schaik. 1 DISCUSSION OF ASSIGNMENT 01/2019 1.1 The correct answer is option [1]. Statement a is correct. In section 3.5, under the heading “The government”, the three important flows are discussed. Statement b is incorrect, because households are the sellers of the factors of production and therefore also of labour. The households offer their factors of production to firms and to government. Statement c is also incorrect, because government spending is an injection into the circular flow of spending and income, whereas taxes constitute a leakage out of the circular flow of spending and income. Refer to figure 3.5. [Show More]
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