ERRATA FOR STUDY GUIDE FOR ECS1500

Please note that these errata are for the printed version of the study guide. Some of these
mistakes were corrected before the pdf document was uploaded for 2023. The current
study guide that is available in pdf format under IMPORTANT DOCUMENTS FOR ECS1500
contains all these corrections.

P31: In section 2.3.2 replace the calculations that are shown, as well as the first three
sentences after the calculation as follows:

Note that the value on the vertical axis changes from 4 to 3 hours; we subtract the initial
value from the final value, thus 3 minus 4 hours = -1 hour. The leisure time therefore
decreases by one hour. The value on the horizontal axis changes from 3 to 4 hours; we
subtract the initial value from the final value, thus 4 minus 3 hours = 1 hour. The slope of this
line is equal to -1. The negative value indicates that the value on the vertical axis changes
in the opposite direction as the value on the horizontal axis, that is, when travelling time to
work increases, leisure time decreases.

P48: Please replace figure 3.7 with the following diagram:

P92: Learning activity 5.1 (b) (i) should read as follows:

Calculate the percentage decrease in price.

Learning activity 5.1 (b) (ii) should read as follows:

Calculate the percentage increase in quantity demanded.

P93: In the general formula for income elasticity of demand, replace the word "electricity"
with "elasticity" so that it reads as follows:

P94: Second paragraph last sentence should read: "When his income increases to R60 000
a year, the consumer only buys 30 kg of maize meal a month."

P97: Line 16: The answer for the cross elasticity of demand (ec) between hot-cross buns and
butter should be negative, as follows:

−16,67%
𝑒𝑒𝑐𝑐 = = −0,834
20%

P100: Lines 6 to 8 of last paragraph, replace the words: "…a demand curve that is horizontal
(parallel to the quantity axis) is perfectly elastic because the quantity demanded can
change without any change in the price level" with "..a demand curve that is horizontal
(parallel to the quantity axis) is perfectly elastic because the quantity demanded can
change infinitely without any change in the price level"

P124: For Learning Activity 6.5, please change as indicated (changes indicated in bold):

Visit the webpage of the South African Reserve Bank

(https://www.resbank.co.za/Pages/ default. aspx). Find the South African Reserve Bank
Quarterly Bulletin for September 2018 (click on Publications and Notices, and choose
Quarterly Bulletins from the dropdown menu). Click on Quarterly Bulletin Publication on
the left. Choose 2018 and find the Quarterly Bulletin for September 2018. Go to the end
of the page and choose the Statistical Table that contains the National Accounts. Find
the table that contains the Expenditure on Gross Domestic Product. Use the information
in this table to complete the following table and to answer the questions that
follow:

Note that you can also find the table that you should use under Additional
Resources. Click on "Table for Learning Activity 6.5"

(a) Complete the following table for 2016 and 2017 using the figures that you find in the
National Financial Accounts:
 Current prices Constant 2010 prices
(R million) (R million)
2016 2017 2016 2017
Final consumption expenditure
by
– Households (C)
– Government (G)
Gross capital formation (I)
– Gross fixed capital formation
– Change in inventories
Residual item
Gross domestic expenditure
(GDE)
Exports of goods and services
(X)
Less: imports of goods and
services (Z)
Expenditure on GDP

(b) Use the information in the table to calculate the following:

(i) Growth rate in nominal GDP from 2016 to 2017
(ii) Growth rate in real GDP from 2016 to 2017

P136-7: The last two lines of page 136, and continued on page 137, should read as follows:

"….an average consumer spent 17,24% of his total basket on food and non-
alcoholic beverages (see table 7.2) and 24,68% (20,30% + 4,38% - see tables 7.1
and 7.2) of their total budget on housing and utilities."

P218: Question (c) of Activity 10.3 should read as follows: "South Africa imports more
agricultural products than it exports"

Question (d) of A Activity 10.3 should read as follows: "South Africa imports more
agricultural products than it exports"

P219: Fifth line from the bottom, replace

With the following: