Dynamics of Markets: Relationships & Structure 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. A relative price is:
The price of one good expressed in terms of another good, rather than in absolute currency terms
The price of a good measured only in United States dollars
A price that never changes over time
The price a government sets by law for all goods
Answer: The price of one good expressed in terms of another good, rather than in absolute currency terms — A relative price expresses the price of one good in terms of another good, reflecting that consumers often compare the relative cost of alternatives rather than judging prices only in absolute currency terms.
Easy
2. If the price of beef rises and, as a result, consumers buy more chicken instead, beef and chicken are best described as:
Substitutes
Complements
Free goods
Factors of production
Answer: Substitutes — Substitutes can be used in place of one another to satisfy a similar want; when the price of one substitute rises, demand for the other tends to increase as consumers switch away from the now relatively more expensive option.
Medium
3. What term describes two goods, such as petrol and large vehicles, that tend to be used together, so that a price rise in one reduces demand for the other?
Answer: Complements — Complements are goods used together, so an increase in the price of one (making the pair as a whole more expensive to use) tends to decrease demand for the other.
