Economics 1B
COECB1-33
BLOCK 3 WRAP-UP SESSION
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Higher Education Act, 101, of 1997. Registration Certificate number: 2001/HE07/008
Wrap-Up:
EXAM PREPARATIONS
By the end of this class, you will be ready for the exam or at least ready …
What will be covered
in today’s lesson?
Prior Q’s & A’s
Wrap-Up Exam Scope
Exam Preparations
Emphasis from Scope:
Chapters
Exam Preparation Tips;
and Post Q’s & A’s
Prior Q’s & A’s
EXAM SCOPE
Emphasis from Scope:
Chapter 23, 24, 26, 27,
28, 29 & 31
Section A: Multiple-Choice Questions
EXAMPLE:
If a government collects more in taxes than it
spends, it has___________
A. A surplus.
B. A government budget surplus.
C. A government budget Deficit.
D. Government expenditure.
E. Consumer surplus.
Section A: Multiple-Choice Questions (Solution)
EXAMPLE:
If a government collects more in taxes than it
spends, it has___________
A. A surplus.
B. A government budget surplus.
C. A government budget Deficit.
D. Government expenditure.
E. Consumer surplus.
Section B: True or False Questions
EXAMPLE:
Labour productivity is the quantity of real GDP produced
by an hour of labour.
A. True.
B. False.
Section B: True or False Questions (Solution)
EXAMPLE:
Labour productivity is the quantity of real GDP produced
by an hour of labour.
A. True.
B. False.
Section C: Practical / Calculation Questions
Tips: On illustrations
i. Always name and mark your axis;
ii. Always indicate shifts & movements with arrows; and
iii. Don’t forget to indicate new and old curves, where
necessary.
Lastly: Explain and illustrate are two different
instructions (read and understand instructions,
i.e. don’t waste time doing what is not asked of you)
Section C: Practical / Calculation Questions
EXAMPLE:
C = 50 + 0.6Y
Ī= 100
1. What is the value of autonomous spending?
2. What is the value of the multiplier?
3. Determine the equilibrium level of income.
4. Calculate the equilibrium level of consumption.
5. Explain why government spending is regarded as autonomous in a Keynesian
model with a government sector. What determines government spending?
Section C: Practical / Calculation Questions
Answer
1. Ā = (50+ 100) = R150
1 1
2. 𝛼 = = = 2.5
1−𝑐 1−0.6
3. In Equilibrium:
𝐴 = 𝐶 + 𝐼 ҧ = 50 + 0.6𝑌 + 150 = 150 + 0.6𝑌
𝑌=𝐴
𝑌 = 𝐴 = 150 + 0.6𝑌
𝑌 − 0.6𝑌 = 150
0.4𝑌 = 150
150
𝑌=
0.4
𝑌 = 375
4. The equilibrium level of consumption:
C=𝐶̅+cY (1)
C=50+0.6 × 375 = R275
EXAM TIPS
What Happens Next?
• Well done on finishing your lectures.
• Now it’s time to prepare for the exam and continue your studies outside of
the classroom.
• Before the exam, you need to do the following:
• Go onto myLMS and make sure to complete all the self-assessment
activities and quizzes under Week 1-7 or revisit your class lecturer notes.
• Reach out to me or your respective lecturer for any questions that you
might have on the content for block 3 as you prepare for the exam.
• Familiarize yourself with the summative assessment tile, i.e., for available
resources at your fingertips e.g., the general rules for the exam; and
• Finally, always read your updates e.g. Ms Teams Chats.
THANK YOU
Post Q’s & A’s
…………………………………………………………
COECB1 – 33 WRAP-UP SESSION
BY: Mr. Fhatuwani Bale
Your Education! Your Future!
Virtually-Led 06 September 20:00 – 21:00
Sessions on
MS TEAMS 2024 PM
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