Circular Flow & Quantitative Elements is one of 10 topics in the Grade 11 Economics CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Final consumption expenditure by households (C) refers to:
Household spending on final goods and services for immediate satisfaction of needs and wants
Government spending on infrastructure
Business spending on new machinery
Foreign spending on domestically produced exports
Answer: Household spending on final goods and services for immediate satisfaction of needs and wants — C refers to spending by households on final goods and services -- durable, semi-durable, non-durable goods, and services -- for the immediate satisfaction of needs and wants.
Easy
2. Which of the following is classified as a durable good in household consumption expenditure?
Furniture
Bread
A haircut
Fresh vegetables
Answer: Furniture — Durable goods are items expected to last more than a year, such as furniture or appliances, distinct from non-durable goods like food or services like a haircut.
Medium
3. What single-letter symbol is used in national accounts for final consumption expenditure by government?
Answer: G — G represents government consumption expenditure, spending on final goods and services consumed to deliver public services in the current period, such as public servants' salaries and hospital medical supplies.
