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Nov P1 Easy
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Nov P1 Easy

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Questions and Answers

What is the main objective of initiatives like ASGISA and the New Economic Growth Path?

  • To decrease international trade
  • To reduce employment
  • To reduce inflation
  • To enhance growth, competitiveness, and employment (correct)

    • What is South Africa trying to achieve in terms of international competitiveness?

  • Maintaining high exchange rates
  • Producing high-quality, competitively priced goods (correct)
  • Producing low-quality goods
  • Reducing trade with major partners

    • What are the three main sectors in South Africa's economy?

  • Primary, tertiary, and quaternary
  • Secondary, tertiary, and quaternary
  • Primary, secondary, and tertiary (correct)
  • Primary, secondary, and quaternary

    • What is the primary sector mainly involved in?

    <p>Extracting and harvesting natural resources</p> Signup and view all the answers

    What is the significance of the primary sector?

    <p>It provides essential raw materials and energy</p> Signup and view all the answers

    What is the secondary sector mainly involved in?

    <p>Manufacturing and construction</p> Signup and view all the answers

    What is the tertiary sector mainly involved in?

    <p>Providing services</p> Signup and view all the answers

    What is the significance of the tertiary sector?

    <p>It dominates the economy and drives overall growth</p> Signup and view all the answers

    What is essential for economic competitiveness in South Africa?

    <p>Efficient communication systems</p> Signup and view all the answers

    What is a challenge facing South Africa's energy sector?

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

    What is the primary function of capital in an economy?

    <p>To sustain production capabilities and drive economic growth</p> Signup and view all the answers

    What is the main reward for entrepreneurship?

    <p>Profit from business ventures</p> Signup and view all the answers

    What is the distinction between final and intermediate goods?

    <p>Intermediate goods are used in further production, while final goods are consumed by end users</p> Signup and view all the answers

    What is the circular flow of goods and services?

    <p>The continuous movement of goods, services, and money within an economy</p> Signup and view all the answers

    What is Gross Domestic Product (GDP)?

    <p>The total value of all final goods and services produced within a country</p> Signup and view all the answers

    What is the role of government in the circular flow of goods and services?

    <p>To collect taxes and redistribute income</p> Signup and view all the answers

    What is the relationship between capital and economic growth?

    <p>Capital is essential for maintaining and expanding production, which drives economic growth</p> Signup and view all the answers

    What is the importance of entrepreneurs in an economy?

    <p>They generate wealth, create jobs, and foster competition</p> Signup and view all the answers

    What is the role of households in the circular flow of goods and services?

    <p>To provide labor and receive wages, spend income on goods and services, and save money</p> Signup and view all the answers

    What is the primary function of the foreign sector in the circular flow of goods and services?

    <p>To involve in trade and financial transactions with other countries</p> Signup and view all the answers

    What is the primary function of natural resources in the economy?

    <p>To generate income for resource owners</p> Signup and view all the answers

    What is the form of remuneration associated with natural resources?

    <p>Rent</p> Signup and view all the answers

    What is a characteristic of labor?

    <p>It is inherently non-storable</p> Signup and view all the answers

    What is a factor that affects labor supply?

    <p>Labor force participation rates</p> Signup and view all the answers

    What is the primary role of entrepreneurship in the economy?

    <p>Not specified in the content</p> Signup and view all the answers

    What is the primary distinction between renewable and non-renewable natural resources?

    <p>Their renewability</p> Signup and view all the answers

    What is the primary benefit of a skilled workforce in the economy?

    <p>It drives economic growth</p> Signup and view all the answers

    What is the primary characteristic of capital?

    <p>It is not specified in the content</p> Signup and view all the answers

    What is the primary difference between economic development and economic growth?

    <p>Growth can occur without widespread benefits, while development implies an improvement in the overall standard of living</p> Signup and view all the answers

    Which of the following is NOT a common characteristic of developing countries?

    <p>Dependence on industry</p> Signup and view all the answers

    What is the primary purpose of the Human Development Index (HDI)?

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

    Which strategy is focused on transitioning from a traditional society to one characterized by high mass consumption?

    <p>Economic development</p> Signup and view all the answers

    What is the primary goal of the Reconstruction and Development Programme (RDP)?

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

    What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

    <p>Rooted in specific communities and traditions</p> Signup and view all the answers

    How many people are estimated to be living in absolute poverty?

    <p>1.7 billion</p> Signup and view all the answers

    What is the primary difference between absolute poverty and relative poverty?

    <p>Absolute poverty involves the lack of basic human needs, while relative poverty is a comparative lack within society</p> Signup and view all the answers

    Which of the following is a strategy for fostering development?

    <p>Resource Improvement</p> Signup and view all the answers

    What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR)?

    <p>To stabilize the economy and promote growth and redistribution</p> Signup and view all the answers

    What is the purpose of the poverty line income?

    <p>To indicate the minimum income needed to cover basic needs</p> Signup and view all the answers

    What is the function of the headcount index?

    <p>To measure the percentage of the population living below the poverty line</p> Signup and view all the answers

    What is a characteristic of money?

    <p>General Acceptance</p> Signup and view all the answers

    What is the main function of banks in the creation of money?

    <p>Extending loans and creating new money</p> Signup and view all the answers

    What is the purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

    What is one of the roles of the South African Reserve Bank (SARB)?

    <p>Implementing monetary policy to control inflation</p> Signup and view all the answers

    What is a consequence of bank failures?

    <p>Losses for depositors and investors</p> Signup and view all the answers

    Why is stability in the banking system important?

    <p>To support economic growth and manage monetary policy effectively</p> Signup and view all the answers

    What is a type of money?

    <p>Commodity Money</p> Signup and view all the answers

    What is the technical function of money as a unit of account?

    <p>To provide a common measure of the value of goods and services</p> Signup and view all the answers

    What is the Income Method of calculating GDP?

    <p>Total of incomes generated by production</p> Signup and view all the answers

    What is Gross National Income (GNI)?

    <p>GDP plus net income from abroad</p> Signup and view all the answers

    What is the main characteristic of a market economy?

    <p>Predominantly private ownership of production factors</p> Signup and view all the answers

    What is a disadvantage of a market economy?

    <p>Potential for significant inequalities in income and wealth distribution</p> Signup and view all the answers

    What is a characteristic of a centrally planned economy?

    <p>State ownership of resources</p> Signup and view all the answers

    What is a benefit of a mixed economy?

    <p>Balances freedom of market operations with government oversight</p> Signup and view all the answers

    What is a challenge faced by the South African government in providing social services?

    <p>Inefficient service delivery</p> Signup and view all the answers

    What is the Expenditure Method of calculating GDP?

    <p>Sum of all expenditures made on final goods and services</p> Signup and view all the answers

    What is the importance of understanding the circular flow?

    <p>It provides insights into how money and goods circulate within an economy</p> Signup and view all the answers

    What is a characteristic of South Africa's mixed economy?

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

    What is the primary source of wealth in economic terms?

    <p>Savings</p> Signup and view all the answers

    What is the main difference between economic growth and economic development?

    <p>Economic growth involves increasing output, while economic development involves improving the standard of living</p> Signup and view all the answers

    What is the Gini Coefficient used to measure?

    <p>The distribution of wealth</p> Signup and view all the answers

    What is the purpose of measuring the distribution of wealth?

    <p>To understand the reasons for uneven distribution of wealth</p> Signup and view all the answers

    What is the term for the increase in a nation's output of goods and services?

    <p>Economic growth</p> Signup and view all the answers

    What is a factor that influences economic growth?

    <p>Capital investment</p> Signup and view all the answers

    What is the term for the level of wealth, comfort, and material goods available to a particular demographic group?

    <p>Standard of living</p> Signup and view all the answers

    What is a method of wealth redistribution?

    <p>All of the above</p> Signup and view all the answers

    What is the purpose of measuring economic growth in real terms?

    <p>To exclude the impact of inflation</p> Signup and view all the answers

    What is a factor that determines the standard of living?

    <p>All of the above</p> Signup and view all the answers

    What is the primary factor of production that includes inherent environmental assets?

    <p>Natural Resources</p> Signup and view all the answers

    What is the form of remuneration associated with natural resources?

    <p>Rent</p> Signup and view all the answers

    What is the characteristic of labor that makes it non-storable?

    <p>Time required for training</p> Signup and view all the answers

    What is the primary role of entrepreneurship in the economy?

    <p>To manage and organize production</p> Signup and view all the answers

    What is the primary distinction between renewable and non-renewable natural resources?

    <p>Renewability</p> Signup and view all the answers

    What is the primary benefit of a skilled workforce in the economy?

    <p>Improved productivity</p> Signup and view all the answers

    What is the primary function of capital in an economy?

    <p>To earn interest and facilitate economic growth</p> Signup and view all the answers

    What is the primary characteristic of capital?

    <p>Man-made goods</p> Signup and view all the answers

    What is the primary function of natural resources in the economy?

    <p>To provide raw materials</p> Signup and view all the answers

    What is the role of entrepreneurs in an economy?

    <p>To initiate and manage businesses, driving economic renewal and innovation</p> Signup and view all the answers

    What is the circular flow of goods and services?

    <p>The continuous movement of goods, services, and money within an economy</p> Signup and view all the answers

    What is the distinction between final and intermediate goods?

    <p>Final goods are consumed by the end user, while intermediate goods are used as inputs in production</p> Signup and view all the answers

    What is the purpose of Gross Domestic Product (GDP)?

    <p>To measure the total value of all goods and services produced within a country's borders</p> Signup and view all the answers

    What is the role of government in the circular flow of goods and services?

    <p>To collect taxes and redistribute income through spending and transfers</p> Signup and view all the answers

    What is the relationship between capital and economic growth?

    <p>Capital is essential for maintaining and expanding production</p> Signup and view all the answers

    What is the role of households in the circular flow of goods and services?

    <p>To provide labor and receive wages, spend income on goods and services, and save money through financial markets</p> Signup and view all the answers

    What is the primary function of the foreign sector in the circular flow of goods and services?

    <p>To involve trade and financial transactions with other countries</p> Signup and view all the answers

    What is the Value Added Method of calculating GDP?

    <p>The sum of value added at each stage of production</p> Signup and view all the answers

    What is the primary goal of a mixed economy?

    <p>To balance individual freedom with government oversight</p> Signup and view all the answers

    What is Gross Fixed Capital Formation (I)?

    <p>Total investment in physical assets for future production</p> Signup and view all the answers

    Which economy relies on government control over economic activities?

    <p>Centrally Planned economy</p> Signup and view all the answers

    What is the Expenditure Method of calculating GDP?

    <p>Sum of all expenditures made on final goods and services</p> Signup and view all the answers

    What is the significance of understanding the circular flow?

    <p>It helps in understanding the effects of various sectors on economic growth</p> Signup and view all the answers

    What is the primary characteristic of a mixed economy?

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

    What is the primary advantage of a market economy?

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

    What is the primary disadvantage of a Centrally Planned economy?

    <p>Shortages of goods due to inefficiencies in resource allocation</p> Signup and view all the answers

    What is the primary role of the government in a mixed economy?

    <p>To promote economic growth through efficient economic services</p> Signup and view all the answers

    What is the primary benefit of a mixed economy?

    <p>Balances freedom of market operations with government oversight</p> Signup and view all the answers

    What is the main aim of South Africa's economic initiatives like ASGISA and the New Economic Growth Path?

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

    What is economic growth typically measured in?

    <p>Both nominal and real terms</p> Signup and view all the answers

    What is a key challenge facing South Africa's energy sector?

    <p>Underinvestment in new power sources</p> Signup and view all the answers

    What is the primary sector responsible for?

    <p>Extracting and harvesting natural resources</p> Signup and view all the answers

    What is the primary source of wealth?

    <p>Savings</p> Signup and view all the answers

    What is the main contribution of the tertiary sector to the economy?

    <p>Offering services like finance and transportation</p> Signup and view all the answers

    What is the purpose of the Gini Coefficient?

    <p>To represent wealth inequality as a numerical value</p> Signup and view all the answers

    What is a factor that contributes to uneven wealth distribution?

    <p>Skills and talent</p> Signup and view all the answers

    What was a major issue during the apartheid era in the primary sector?

    <p>Discriminatory policies depriving black South Africans of land ownership and equal opportunities</p> Signup and view all the answers

    What is the benefit of a skilled workforce in the economy?

    <p>Enhances productivity</p> Signup and view all the answers

    What is the significance of efficient communication systems in South Africa?

    <p>They are essential for economic competitiveness</p> Signup and view all the answers

    What is the main function of transport networks in South Africa?

    <p>To facilitate domestic and international trade</p> Signup and view all the answers

    What is economic development focused on?

    <p>Broad-based improvements in the standard of living</p> Signup and view all the answers

    What was a consequence of apartheid policies in the secondary sector?

    <p>Restricted training and job opportunities for black individuals</p> Signup and view all the answers

    What is the primary function of capital in an economy?

    <p>To generate income</p> Signup and view all the answers

    What is the primary role of laws like the Black Economic Empowerment Act and the Employment Equity Act?

    <p>To dismantle barriers to access and equity</p> Signup and view all the answers

    What is a characteristic of labor?

    <p>Variable in supply</p> Signup and view all the answers

    What is the primary role of entrepreneurship in the economy?

    <p>To create employment opportunities</p> Signup and view all the answers

    What is the significance of the tertiary sector in terms of GDP?

    <p>It is the largest sector in developed economies and a dominant contributor to GDP</p> Signup and view all the answers

    What is the distinction between economic growth and economic development?

    <p>Economic growth focuses on the economy, while economic development focuses on the standard of living</p> Signup and view all the answers

    What is the primary purpose of the poverty gap index?

    <p>To calculate the average shortfall from the poverty line</p> Signup and view all the answers

    What is a characteristic of fiat money?

    <p>It is a government-issued currency not backed by a physical commodity</p> Signup and view all the answers

    What is the main function of the South African Reserve Bank (SARB)?

    <p>To implement monetary policy to control inflation</p> Signup and view all the answers

    What is the consequence of bank failures?

    <p>Losses for depositors and investors</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

    What is the significance of stability in the banking system?

    <p>It supports economic growth</p> Signup and view all the answers

    What is the primary characteristic of money?

    <p>It is a store of value and a medium of exchange</p> Signup and view all the answers

    What is the purpose of the headcount index?

    <p>To measure the percentage of the population living below the poverty line</p> Signup and view all the answers

    What is the role of banks in the creation of money?

    <p>Banks create money through credit creation</p> Signup and view all the answers

    What is the primary function of the poverty line income?

    <p>To determine the minimum income needed to cover basic needs</p> Signup and view all the answers

    What is the primary difference between economic development and economic growth?

    <p>Economic development is an improvement in the overall standard of living</p> Signup and view all the answers

    What is the role of enhancing education in developing countries?

    <p>To boost labor quality</p> Signup and view all the answers

    What is a characteristic of Indigenous Knowledge Systems (IKS)?

    <p>It is based on traditional knowledge and experience</p> Signup and view all the answers

    What is the primary purpose of the Human Development Index (HDI)?

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

    What is a common characteristic of developing countries?

    <p>Low productivity due to outdated technology</p> Signup and view all the answers

    What is the primary goal of capital investment in developing countries?

    <p>To stimulate growth through investment in productive assets and infrastructure</p> Signup and view all the answers

    What is a strategy for fostering development in developing countries?

    <p>Promoting entrepreneurship</p> Signup and view all the answers

    What is the primary purpose of the Reconstruction and Development Programme (RDP)?

    <p>To target restructuring the economy to enable sustainable development</p> Signup and view all the answers

    What is the primary difference between absolute poverty and relative poverty?

    <p>Absolute poverty involves a lack of basic human needs, while relative poverty is a comparative lack within society</p> Signup and view all the answers

    What is a characteristic of developing countries?

    <p>Low standard of living, high poverty rates, and low life expectancy</p> Signup and view all the answers

    Which method of calculating GDP includes expenditures made on final goods and services?

    <p>Expenditure Method</p> Signup and view all the answers

    What is the primary goal of a mixed economy?

    <p>To balance individual freedom with government oversight</p> Signup and view all the answers

    What is Gross Fixed Capital Formation (I)?

    <p>Total investment in physical assets for future production</p> Signup and view all the answers

    What is a characteristic of a market economy?

    <p>High motivation due to profit incentives</p> Signup and view all the answers

    What are the four primary factors of production?

    <p>Natural Resources, Labor, Capital, and Entrepreneurship</p> Signup and view all the answers

    What is a disadvantage of a centrally planned economy?

    <p>Lack of individual and corporate incentive to improve efficiency or innovate</p> Signup and view all the answers

    What is an advantage of a mixed economy?

    <p>Balances freedom of market operations with government oversight</p> Signup and view all the answers

    What is the payment associated with natural resources?

    <p>Rent</p> Signup and view all the answers

    What is the primary role of the government in a mixed economy?

    <p>To provide social services and promote economic growth</p> Signup and view all the answers

    What is the characteristic of labor that affects its supply?

    <p>Training time</p> Signup and view all the answers

    What is a characteristic of South Africa's economy?

    <p>Mixed economy with both market-driven and state-controlled sectors</p> Signup and view all the answers

    What is the primary importance of natural resources in the economy?

    <p>All of the above</p> Signup and view all the answers

    What is the primary role of entrepreneurship in the economy?

    <p>Taking risks and innovating</p> Signup and view all the answers

    What is the significance of understanding the Circular Flow?

    <p>It helps in understanding how money and goods circulate within an economy</p> Signup and view all the answers

    What is the relationship between Gross Domestic Product (GDP) and Gross National Income (GNI)?

    <p>GDP plus net income from abroad equals GNI</p> Signup and view all the answers

    What is the primary distinction between renewable and non-renewable natural resources?

    <p>Renewability</p> Signup and view all the answers

    What is the primary benefit of a skilled workforce in the economy?

    <p>Increased productivity</p> Signup and view all the answers

    What is the primary characteristic of capital?

    <p>Man-made asset</p> Signup and view all the answers

    What is the primary goal of South Africa's economic services?

    <p>To promote international trade and local businesses</p> Signup and view all the answers

    Which sector is crucial for food production and basic materials?

    <p>Primary sector</p> Signup and view all the answers

    What is the main objective of post-apartheid reforms in the primary sector?

    <p>To address historical inequalities</p> Signup and view all the answers

    What is the significance of the secondary sector in South Africa?

    <p>It enhances economic self-sufficiency and growth</p> Signup and view all the answers

    What is the main goal of Black Economic Empowerment (BEE) in the secondary sector?

    <p>To improve access and equity for black individuals</p> Signup and view all the answers

    What is the largest sector in developed economies?

    <p>Tertiary sector</p> Signup and view all the answers

    What is the primary function of communication systems in South Africa's economy?

    <p>To facilitate domestic and international trade</p> Signup and view all the answers

    What is the primary function of transport networks in South Africa's economy?

    <p>To facilitate domestic and international trade</p> Signup and view all the answers

    What is the primary challenge facing South Africa's energy sector?

    <p>Underinvestment in new power sources</p> Signup and view all the answers

    What is the primary function of energy sources in South Africa's economy?

    <p>To provide essential energy for sustained economic activity</p> Signup and view all the answers

    What is the primary source of wealth in economic terms?

    <p>Savings</p> Signup and view all the answers

    What is the purpose of the Lorenz Curve?

    <p>To illustrate the distribution of wealth</p> Signup and view all the answers

    What is economic growth defined as?

    <p>An increase in a nation's output of goods and services</p> Signup and view all the answers

    What is a factor that influences economic growth?

    <p>Labor productivity</p> Signup and view all the answers

    What is the purpose of the Gini Coefficient?

    <p>To represent wealth inequality numerically</p> Signup and view all the answers

    What is a characteristic of economic development?

    <p>Broad-based improvements in the standard of living</p> Signup and view all the answers

    What is the significance of GDP per capita?

    <p>It compares growth across countries, factoring in population differences</p> Signup and view all the answers

    What is a factor that determines the standard of living?

    <p>All of the above</p> Signup and view all the answers

    What is wealth distribution often characterized by?

    <p>Significant inequality</p> Signup and view all the answers

    What is the primary goal of methods of wealth redistribution?

    <p>To redistribute wealth</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To improve the overall standard of living in a country</p> Signup and view all the answers

    Which of the following is a characteristic of developing countries?

    <p>Reliance on primary sector outputs</p> Signup and view all the answers

    What is the purpose of the Human Development Index (HDI)?

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

    What is the primary goal of the Reconstruction and Development Programme (RDP)?

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

    What is Indigenous Knowledge Systems (IKS)?

    <p>A system of traditional knowledge existing within a community</p> Signup and view all the answers

    What is absolute poverty?

    <p>A lack of basic human needs like water, food, healthcare, education, clothing, and shelter</p> Signup and view all the answers

    What is the primary difference between economic development and economic growth?

    <p>Economic development is an improvement in the overall standard of living, while economic growth can occur without widespread benefits</p> Signup and view all the answers

    What is the primary role of capital in an economy?

    <p>To invest in directly productive assets and indirectly productive infrastructure</p> Signup and view all the answers

    What is the primary goal of promoting entrepreneurship?

    <p>To create jobs and diversify goods and services</p> Signup and view all the answers

    Which strategy is focused on transitioning from a traditional society to one characterized by high mass consumption?

    <p>Economic development involves transitioning through various stages</p> Signup and view all the answers

    What is the primary purpose of recalculating the poverty line income annually?

    <p>To account for inflation</p> Signup and view all the answers

    Which of the following is a characteristic of fiat money?

    <p>It is not backed by a physical commodity</p> Signup and view all the answers

    What is the primary function of the South African Reserve Bank (SARB) in terms of monetary policy?

    <p>To implement monetary policy to control inflation</p> Signup and view all the answers

    What is the primary goal of micro-lending?

    <p>To offer credit to individuals who cannot access traditional bank financing</p> Signup and view all the answers

    What is the consequence of bank failures on the broader economy?

    <p>It can lead to systemic risk affecting the broader economy</p> Signup and view all the answers

    What is the primary function of money as a store of value?

    <p>To maintain its value over time, allowing savings</p> Signup and view all the answers

    What is the primary role of the headcount index?

    <p>To measure the percentage of the population living below the poverty line</p> Signup and view all the answers

    What is the primary function of banks in the creation of money?

    <p>To extend loans exceeding their cash reserves</p> Signup and view all the answers

    What is the primary goal of efforts to alleviate poverty in South Africa?

    <p>To eradicate extreme poverty and hunger</p> Signup and view all the answers

    What is the primary characteristic of the tertiary sector?

    <p>It is primarily involved in the provision of services</p> Signup and view all the answers

    What is the primary function of entrepreneurs in the economy?

    <p>To initiate and manage businesses, identifying new opportunities</p> Signup and view all the answers

    What is the circular flow of goods and services?

    <p>The continuous movement of goods, services, and money within an economy</p> Signup and view all the answers

    What is the main reward for entrepreneurship?

    <p>Profit</p> Signup and view all the answers

    What is capital?

    <p>All manufactured resources used in further production</p> Signup and view all the answers

    What is the distinction between final and intermediate goods?

    <p>Final goods are consumed by the end user and not used in further production, while intermediate goods are used as inputs</p> Signup and view all the answers

    What does GDP measure?

    <p>The total value of all goods and services produced within a country's borders in a specific time period</p> Signup and view all the answers

    What is the primary role of government in the circular flow of goods and services?

    <p>To collect taxes and redistribute income through spending and transfers</p> Signup and view all the answers

    What is the relationship between capital and economic growth?

    <p>Capital is essential for economic growth and sustains production capabilities</p> Signup and view all the answers

    What is the role of households in the circular flow of goods and services?

    <p>To provide labor and receive wages, spend income on goods and services, and save money through financial markets</p> Signup and view all the answers

    What is the primary function of the foreign sector in the circular flow of goods and services?

    <p>To involve trade and financial transactions with other countries, affecting the domestic economy through exports and imports</p> Signup and view all the answers

    What is the main purpose of the tertiary sector?

    <p>To provide services and support economic growth</p> Signup and view all the answers

    What is a significant challenge facing South Africa's energy sector?

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

    What is the primary purpose of the primary sector?

    <p>To extract and harvest natural resources</p> Signup and view all the answers

    What is the focus of the secondary sector?

    <p>Manufacturing and constructing goods</p> Signup and view all the answers

    What is the significance of the primary sector?

    <p>It generates employment, foreign exchange, and contributes significantly to GDP</p> Signup and view all the answers

    What is the purpose of the Land Redistribution Programme?

    <p>To address historical inequalities in land ownership</p> Signup and view all the answers

    What is the importance of efficient communication systems in South Africa?

    <p>They support economic competitiveness</p> Signup and view all the answers

    What is the significance of South Africa's infrastructure?

    <p>It promotes economic growth and development</p> Signup and view all the answers

    What is the primary focus of initiatives like ASGISA and the New Economic Growth Path?

    <p>To enhance international competitiveness</p> Signup and view all the answers

    What is the purpose of Black Economic Empowerment (BEE) policies?

    <p>To address historical inequalities in the secondary sector</p> Signup and view all the answers

    What are the four primary factors of production?

    <p>Natural Resources, Labor, Capital, Entrepreneurship</p> Signup and view all the answers

    What type of natural resources are forests and plants examples of?

    <p>Renewable</p> Signup and view all the answers

    What is the form of remuneration typically associated with natural resources?

    <p>Rent</p> Signup and view all the answers

    What is a characteristic of labor in the production process?

    <p>Labor is inherently non-storable</p> Signup and view all the answers

    What is the importance of a skilled workforce in the economy?

    <p>It drives economic growth</p> Signup and view all the answers

    What is the primary role of entrepreneurship in the economy?

    <p>To innovate and take risks</p> Signup and view all the answers

    What is a factor that affects labor supply?

    <p>Labor force participation rates</p> Signup and view all the answers

    What is the primary distinction between renewable and non-renewable natural resources?

    <p>Their ability to be replenished over time</p> Signup and view all the answers

    What is the primary function of capital in the economy?

    <p>To sustain production capabilities</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

    <p>Profit</p> Signup and view all the answers

    What is the distinction between final and intermediate goods?

    <p>Final goods are consumed by the end user, while intermediate goods are used in further production</p> Signup and view all the answers

    What is the Circular Flow of Goods and Services?

    <p>A model that highlights the interdependence between different sectors and agents in the economic system</p> Signup and view all the answers

    What is Gross Domestic Product (GDP)?

    <p>The total value of all goods and services produced within a country's borders in a specific time period</p> Signup and view all the answers

    What is the primary role of households in the Circular Flow of Goods and Services?

    <p>To provide labor and receive wages</p> Signup and view all the answers

    What is the primary function of the foreign sector in the Circular Flow of Goods and Services?

    <p>To involve trade and financial transactions with other countries</p> Signup and view all the answers

    What is the relationship between capital and economic growth?

    <p>Capital is essential for economic growth</p> Signup and view all the answers

    What is the primary source of wealth in economic terms?

    <p>Savings</p> Signup and view all the answers

    What is the primary importance of entrepreneurs in an economy?

    <p>They generate wealth and create jobs</p> Signup and view all the answers

    What is the term used to describe the increase in a nation's output of goods and services?

    <p>Economic growth</p> Signup and view all the answers

    What is the primary characteristic of capital?

    <p>It includes all manufactured resources used in further production</p> Signup and view all the answers

    What is the measure of wealth inequality ranging from 0 (perfect equality) to 1 (perfect inequality)?

    <p>Gini Coefficient</p> Signup and view all the answers

    What is the term used to describe the level of wealth, comfort, and material goods available to a particular demographic group within a geographical area?

    <p>Standard of living</p> Signup and view all the answers

    What is the primary factor that influences economic growth?

    <p>Capital investment</p> Signup and view all the answers

    What is the term used to describe broad-based improvements in the standard of living of a society?

    <p>Economic development</p> Signup and view all the answers

    What is the measure of economic performance relative to population size?

    <p>GDP per Capita</p> Signup and view all the answers

    What is the primary reason for unequal wealth distribution?

    <p>All of the above</p> Signup and view all the answers

    What is the term used to describe the ability to generate income?

    <p>Wealth creation</p> Signup and view all the answers

    What is the primary way to measure economic growth?

    <p>Real Terms</p> Signup and view all the answers

    What is the primary purpose of the Expenditure Method in calculating GDP?

    <p>To calculate the total expenditures made on final goods and services</p> Signup and view all the answers

    What is the primary characteristic of a market economy?

    <p>Predominantly private ownership of production factors</p> Signup and view all the answers

    What is the main advantage of a mixed economy?

    <p>Balances freedom of market operations with government oversight</p> Signup and view all the answers

    What is Gross Fixed Capital Formation (I) in the Expenditure Method?

    <p>Total investment in physical assets</p> Signup and view all the answers

    What is the primary role of government in a mixed economy?

    <p>Providing social services to improve public welfare</p> Signup and view all the answers

    What is the primary advantage of a centrally planned economy?

    <p>Even distribution of income</p> Signup and view all the answers

    What is the primary disadvantage of a market economy?

    <p>Potential for significant inequalities in income and wealth distribution</p> Signup and view all the answers

    What is the primary characteristic of South Africa's mixed economy?

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

    What is the primary importance of understanding the circular flow of goods and services?

    <p>All of the above</p> Signup and view all the answers

    What is the primary benefit of a mixed economy in South Africa?

    <p>Balances freedom of market operations with government oversight</p> Signup and view all the answers

    What is the primary focus of the Resource Improvement strategy for development?

    <p>Enhancing the quality and value of natural resources</p> Signup and view all the answers

    Which of the following is a characteristic of developing countries?

    <p>Low standard of living</p> Signup and view all the answers

    What is the primary purpose of the Human Development Index (HDI)?

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

    What is the primary goal of the Reconstruction and Development Programme (RDP)?

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

    What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

    <p>Experiential and dynamic</p> Signup and view all the answers

    What is the primary difference between absolute poverty and relative poverty?

    <p>Absolute poverty refers to a lack of basic human needs, while relative poverty is a comparative lack within society</p> Signup and view all the answers

    What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR)?

    <p>To stabilize the economy and promote growth and redistribution</p> Signup and view all the answers

    What is the primary focus of the Labor Quality strategy for development?

    <p>Boosting education, particularly in crucial areas like math and science</p> Signup and view all the answers

    What is the primary characteristic of developing countries' infrastructure?

    <p>Poor transportation, communication, and utility services</p> Signup and view all the answers

    What is the primary strategy for transitioning from a traditional society to one characterized by high mass consumption?

    <p>All of the above</p> Signup and view all the answers

    What is the primary purpose of the poverty line income?

    <p>To indicate the minimum income needed to cover basic needs</p> Signup and view all the answers

    What is a characteristic of commodity money?

    <p>It is a physical good used as money</p> Signup and view all the answers

    What is the primary function of banks in the creation of money?

    <p>To extend loans exceeding their cash reserves</p> Signup and view all the answers

    What is the primary role of the South African Reserve Bank (SARB)?

    <p>To implement monetary policy</p> Signup and view all the answers

    What is a consequence of bank failures?

    <p>Job losses for employees</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

    What is a characteristic of fiat money?

    <p>It is a government-issued currency not backed by a physical commodity</p> Signup and view all the answers

    What is the primary reason for the importance of stability in the banking system?

    <p>To ensure confidence in the banking system</p> Signup and view all the answers

    What is the technical function of money as a store of value?

    <p>It maintains its value over time, allowing savings</p> Signup and view all the answers

    What is the primary goal of the Millennium Development Goals?

    <p>To eradicate extreme poverty and hunger by 2015</p> Signup and view all the answers

    What are the four primary factors of production?

    <p>Natural Resources, Labor, Capital, and Entrepreneurship</p> Signup and view all the answers

    What type of natural resource is renewable?

    <p>Plants</p> Signup and view all the answers

    What is the primary form of remuneration for natural resources?

    <p>Rent</p> Signup and view all the answers

    What is a characteristic of labor?

    <p>It varies in skill level</p> Signup and view all the answers

    What is the primary importance of natural resources?

    <p>They drive economic development and provide raw materials for goods and services</p> Signup and view all the answers

    What is a factor that affects labor supply?

    <p>Population growth</p> Signup and view all the answers

    What is the primary role of entrepreneurship?

    <p>To drive economic development and growth</p> Signup and view all the answers

    What is the primary benefit of a skilled workforce?

    <p>Improved productivity</p> Signup and view all the answers

    What is the main benefit of South Africa's economic growth initiatives?

    <p>Enhancing growth, competitiveness, and employment</p> Signup and view all the answers

    What is South Africa's main goal in terms of international trade?

    <p>Producing high-quality, competitively priced goods</p> Signup and view all the answers

    What is the primary contribution of the primary sector to the economy?

    <p>Extracting and harvesting natural resources</p> Signup and view all the answers

    What is the significance of the secondary sector?

    <p>It enhances economic self-sufficiency and growth</p> Signup and view all the answers

    What is the primary function of South Africa's infrastructure?

    <p>To facilitate domestic and international trade</p> Signup and view all the answers

    What is a challenge facing South Africa's energy sector?

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

    What is the primary goal of laws post-1994, such as the Black Economic Empowerment Act?

    <p>To dismantle barriers and promote equity</p> Signup and view all the answers

    What is the significance of the tertiary sector?

    <p>It supports the marketing and distribution of goods</p> Signup and view all the answers

    What is the primary goal of the Land Redistribution Programme?

    <p>To address historical inequalities in land ownership</p> Signup and view all the answers

    What is the primary function of the public sector in South Africa's economy?

    <p>To support state income through taxation</p> Signup and view all the answers

    What is the Expenditure Method of calculating GDP?

    <p>Sum of all expenditures made on final goods and services</p> Signup and view all the answers

    What is Gross Fixed Capital Formation (I) in the context of GDP?

    <p>Reflects total investment in physical assets that will be used in future production</p> Signup and view all the answers

    What is the main characteristic of a mixed economy?

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

    What is a characteristic of a market economy?

    <p>Predominantly private ownership of production factors</p> Signup and view all the answers

    What is an advantage of a mixed economy?

    <p>Balances freedom of market operations with government oversight</p> Signup and view all the answers

    What is a disadvantage of a centrally planned economy?

    <p>Lack of individual and corporate incentive to improve efficiency</p> Signup and view all the answers

    What is the role of the government in a mixed economy?

    <p>To provide social services and promote economic growth</p> Signup and view all the answers

    What is the importance of understanding the circular flow?

    <p>To understand how money and goods circulate within an economy</p> Signup and view all the answers

    What is the characteristic of Gross Domestic Product (GDP)?

    <p>Measures the total value of all final goods and services produced within an economy</p> Signup and view all the answers

    What is the difference between Gross Domestic Product (GDP) and Gross National Income (GNI)?

    <p>GDP measures the total value of all final goods and services produced within an economy, while GNI measures the total value of all goods and services produced by residents of an economy</p> Signup and view all the answers

    Which factor is critical for maintaining and expanding production?

    <p>Capital</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

    <p>Profit</p> Signup and view all the answers

    What is the circular flow of goods and services?

    <p>The continuous movement of goods, services, and money within an economy</p> Signup and view all the answers

    Which component of the circular flow represents total spending by households on goods and services?

    <p>Consumption (C)</p> Signup and view all the answers

    What is Gross Domestic Product (GDP)?

    <p>The total value of all final goods and services produced within a country's borders</p> Signup and view all the answers

    Which of the following is an example of human capital?

    <p>Skills and experience</p> Signup and view all the answers

    What is the primary function of the foreign sector in the circular flow of goods and services?

    <p>To engage in trade and financial transactions with other countries</p> Signup and view all the answers

    What is the relationship between capital and economic growth?

    <p>Capital is essential for economic growth</p> Signup and view all the answers

    What is the distinction between final and intermediate goods?

    <p>Final goods are consumed by the end user, while intermediate goods are used in further production</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To improve the overall standard of living</p> Signup and view all the answers

    What is a characteristic of developing countries?

    <p>Dependence on primary sector outputs</p> Signup and view all the answers

    What is the role of entrepreneurs in the economy?

    <p>To manage businesses and identify new opportunities</p> Signup and view all the answers

    What is the Human Development Index (HDI) used for?

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

    What is the primary focus of the Reconstruction and Development Programme (RDP)?

    <p>To restructure the economy to enable sustainable development</p> Signup and view all the answers

    What is Indigenous Knowledge Systems (IKS) rooted in?

    <p>Local and culture-specific traditions</p> Signup and view all the answers

    What is the primary distinction between absolute poverty and relative poverty?

    <p>The comparative lack within society</p> Signup and view all the answers

    What is a strategy for fostering development?

    <p>Promoting entrepreneurship</p> Signup and view all the answers

    What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR)?

    <p>To stabilize the economy and promote growth and redistribution</p> Signup and view all the answers

    What is the primary characteristic of labor in developing countries?

    <p>Under-skilled</p> Signup and view all the answers

    What is the primary goal of capital investment?

    <p>To stimulate growth through investing in assets and infrastructure</p> Signup and view all the answers

    What is the key aspect of economic growth reflected in the standard of living?

    <p>Increase in an economy's output</p> Signup and view all the answers

    What is the primary source of wealth?

    <p>Savings</p> Signup and view all the answers

    What is the purpose of the Gini coefficient?

    <p>To represent wealth inequality numerically</p> Signup and view all the answers

    What is a factor that contributes to economic disparity?

    <p>All of the above</p> Signup and view all the answers

    What is the difference between economic growth and economic development?

    <p>Economic growth is an increase in an economy's output, while economic development is an increase in the standard of living</p> Signup and view all the answers

    What is the significance of the Lorenz curve?

    <p>It illustrates the distribution of wealth across a population</p> Signup and view all the answers

    What is the primary function of capital in an economy?

    <p>To increase the productive capacity</p> Signup and view all the answers

    What is a factor that influences economic growth?

    <p>All of the above</p> Signup and view all the answers

    What is the primary purpose of measuring the standard of living?

    <p>To evaluate the economic performance of a country relative to its population size</p> Signup and view all the answers

    What is the primary distinction between measuring economic growth in nominal and real terms?

    <p>Nominal terms include inflation, while real terms exclude it</p> Signup and view all the answers

    What is the primary purpose of recalculating the poverty line income annually?

    <p>To adjust for inflation</p> Signup and view all the answers

    What is the primary function of the poverty gap index?

    <p>To calculate the average shortfall from the poverty line</p> Signup and view all the answers

    What is a common characteristic of poverty?

    <p>All of the above</p> Signup and view all the answers

    What is the primary goal of promoting entrepreneurship and land ownership in South Africa?

    <p>To reduce poverty</p> Signup and view all the answers

    What is a characteristic of fiat money?

    <p>It is not backed by a physical commodity</p> Signup and view all the answers

    What is the primary function of the South African Reserve Bank (SARB)?

    <p>To implement monetary policy</p> Signup and view all the answers

    What is a consequence of bank failures?

    <p>Job losses for employees</p> Signup and view all the answers

    What is the primary importance of ensuring stability in the banking system?

    <p>To increase confidence in the banking system</p> Signup and view all the answers

    What is the primary function of credit creation?

    <p>To create new money through credit</p> Signup and view all the answers

    What is the primary purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

    What are the four primary factors of production?

    <p>Natural Resources, Labor, Capital, and Entrepreneurship</p> Signup and view all the answers

    What type of natural resources are forests and plants?

    <p>Renewable</p> Signup and view all the answers

    What is the form of remuneration associated with labor?

    <p>Wages</p> Signup and view all the answers

    What is the primary importance of natural resources in an economy?

    <p>All of the above</p> Signup and view all the answers

    What is a characteristic of entrepreneurship?

    <p>Risk-taking</p> Signup and view all the answers

    What affects the supply of labor?

    <p>All of the above</p> Signup and view all the answers

    Why is a skilled workforce important in an economy?

    <p>It boosts productivity</p> Signup and view all the answers

    What is the primary distinction between renewable and non-renewable natural resources?

    <p>Their renewability</p> Signup and view all the answers

    What is the main goal of South Africa's economic services?

    <p>To support local businesses and facilitate international trade</p> Signup and view all the answers

    Which sector involves the extraction and harvesting of natural resources?

    <p>Primary sector</p> Signup and view all the answers

    What is the significance of the secondary sector?

    <p>It produces consumer and capital goods</p> Signup and view all the answers

    What is the primary importance of the tertiary sector?

    <p>It is the dominant contributor to GDP</p> Signup and view all the answers

    What is essential for South Africa's economic competitiveness?

    <p>Efficient communication systems</p> Signup and view all the answers

    What is the primary function of South Africa's infrastructure?

    <p>To facilitate domestic and international trade</p> Signup and view all the answers

    What is the historical context of discrimination and exclusion in South Africa's economic sectors?

    <p>During the apartheid era</p> Signup and view all the answers

    What is the primary aim of post-apartheid reforms in the primary sector?

    <p>To address historical inequalities</p> Signup and view all the answers

    What is the primary focus of the secondary sector?

    <p>Manufacturing and construction</p> Signup and view all the answers

    What is the main objective of the Expenditure Method of calculating GDP?

    <p>To sum up all expenditures made on final goods and services</p> Signup and view all the answers

    What is the primary characteristic of a mixed economy?

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

    What is the primary benefit of efficient communication systems in South Africa?

    <p>Enhanced economic competitiveness</p> Signup and view all the answers

    What is the primary advantage of a market economy?

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

    What is the primary role of government in a mixed economy?

    <p>To provide social services and promote economic growth</p> Signup and view all the answers

    What is the significance of the Circular Flow model?

    <p>It shows how money and goods circulate within an economy</p> Signup and view all the answers

    What is the primary characteristic of Gross Fixed Capital Formation (I)?

    <p>Total investment in physical assets</p> Signup and view all the answers

    What is the primary distinction between a market economy and a centrally planned economy?

    <p>Level of government involvement</p> Signup and view all the answers

    What is the primary advantage of a centrally planned economy?

    <p>Efficient resource utilization without competitive wastage</p> Signup and view all the answers

    What is the primary characteristic of the South African economy?

    <p>Mixed economy</p> Signup and view all the answers

    What is the primary goal of the government's social services in South Africa?

    <p>To improve public welfare</p> Signup and view all the answers

    What is the primary function of entrepreneurship in an economy?

    <p>To create jobs and wealth through innovative business ventures</p> Signup and view all the answers

    What is the key distinction between capital widening and deepening?

    <p>Capital widening refers to an increase in the quantity of capital, while deepening refers to an improvement in its quality</p> Signup and view all the answers

    What is the primary role of the government in the circular flow of goods and services?

    <p>To redistribute income through taxation and spending</p> Signup and view all the answers

    What is the main characteristic of intermediate goods?

    <p>They are used as inputs in the production of other goods</p> Signup and view all the answers

    What is the primary component of the circular flow of goods and services?

    <p>Businesses producing goods and services for households</p> Signup and view all the answers

    What is the main purpose of calculating Gross Domestic Product (GDP)?

    <p>To measure the total value of all final goods and services produced within a country's borders</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

    <p>Profit, which compensates for the risks and efforts involved</p> Signup and view all the answers

    What is the main difference between Gross Domestic Product (GDP) and Gross National Income (GNI)?

    <p>GDP measures the total value of production within a country, while GNI measures the total income earned by citizens</p> Signup and view all the answers

    What is the primary role of capital in an economy?

    <p>To sustain production capabilities and drive economic growth</p> Signup and view all the answers

    What is the main purpose of the Value Added Method of calculating GDP?

    <p>To calculate the total value added at each stage of production</p> Signup and view all the answers

    What is the primary purpose of the poverty line income?

    <p>To indicate the minimum income needed to cover basic needs</p> Signup and view all the answers

    What is the function of the headcount index?

    <p>To calculate the percentage of the population living below the poverty line</p> Signup and view all the answers

    What is a characteristic of money?

    <p>It is universally accepted in transactions</p> Signup and view all the answers

    What is the main function of banks in the creation of money?

    <p>To provide loans exceeding their cash reserves</p> Signup and view all the answers

    What is the purpose of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

    What is one of the roles of the South African Reserve Bank (SARB)?

    <p>To implement monetary policy to control inflation</p> Signup and view all the answers

    What is a consequence of bank failures?

    <p>Losses for depositors and investors</p> Signup and view all the answers

    What is the primary goal of economic development?

    <p>To improve the overall standard of living in a country</p> Signup and view all the answers

    Why is stability in the banking system important?

    <p>It promotes confidence and supports economic growth</p> Signup and view all the answers

    Which of the following is a common characteristic of developing countries?

    <p>Dependence on primary sector outputs</p> Signup and view all the answers

    What is a type of money?

    <p>All of the above</p> Signup and view all the answers

    What is the primary purpose of the Human Development Index (HDI)?

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

    What is the technical function of money as a unit of account?

    <p>To provide a common measure of the value of goods and services</p> Signup and view all the answers

    What is the focus of Indigenous Knowledge Systems (IKS)?

    <p>Traditional knowledge existing within a community</p> Signup and view all the answers

    What is the primary difference between economic development and economic growth?

    <p>Economic development is a broader concept, while economic growth is a narrower concept</p> Signup and view all the answers

    What is the primary goal of the Reconstruction and Development Programme (RDP)?

    <p>To promote economic growth and redistribution</p> Signup and view all the answers

    What is the primary purpose of capital investment in development strategies?

    <p>To stimulate growth through investment in productive assets and infrastructure</p> Signup and view all the answers

    What is the primary characteristic of resource improvement strategies?

    <p>Improving the quality and value of natural resources</p> Signup and view all the answers

    What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR)?

    <p>To stabilize the economy and promote growth and redistribution</p> Signup and view all the answers

    What is the primary difference between absolute poverty and relative poverty?

    <p>Absolute poverty refers to a lack of basic human needs, while relative poverty is a comparative lack within society</p> Signup and view all the answers

    What is the primary source of wealth?

    <p>Savings</p> Signup and view all the answers

    What is the numerical representation of wealth inequality?

    <p>Gini Coefficient</p> Signup and view all the answers

    What is the main difference between economic growth and economic development?

    <p>Economic growth refers to an increase in output, while economic development refers to an improvement in standard of living</p> Signup and view all the answers

    What is the purpose of measuring wealth distribution?

    <p>To measure the effectiveness of wealth redistribution policies</p> Signup and view all the answers

    What is the main factor that influences economic growth?

    <p>Capital investment</p> Signup and view all the answers

    What is the primary way to measure standard of living?

    <p>Per capita GDP</p> Signup and view all the answers

    What is the main reason for uneven wealth distribution?

    <p>All of the above</p> Signup and view all the answers

    What is the primary goal of wealth redistribution policies?

    <p>To reduce income inequality</p> Signup and view all the answers

    What is the main characteristic of economic development?

    <p>Enhancement of economic, social, and political welfare</p> Signup and view all the answers

    What is the relationship between economic growth and standard of living?

    <p>Economic growth typically improves living standards</p> Signup and view all the answers

    What are the four primary factors of production?

    <p>Natural Resources, Labor, Capital, and Entrepreneurship</p> Signup and view all the answers

    What type of resources are forests and mineral deposits?

    <p>Natural resources</p> Signup and view all the answers

    What is the form of remuneration associated with labor?

    <p>Wages</p> Signup and view all the answers

    What is the primary importance of natural resources?

    <p>All of the above</p> Signup and view all the answers

    What is the primary characteristic of labor?

    <p>It varies in skill level</p> Signup and view all the answers

    What is the primary importance of entrepreneurship?

    <p>Driving innovation and growth</p> Signup and view all the answers

    What is the primary distinction between renewable and non-renewable natural resources?

    <p>Their renewability</p> Signup and view all the answers

    What is the primary benefit of a skilled workforce?

    <p>Increased productivity</p> Signup and view all the answers

    What is the primary function of capital in an economy?

    <p>To earn interest and increase productivity</p> Signup and view all the answers

    What is the difference between final and intermediate goods?

    <p>Final goods are consumed by the end user, while intermediate goods are used as inputs</p> Signup and view all the answers

    What is the role of households in the circular flow of goods and services?

    <p>To provide labor and receive wages, and save money through financial markets</p> Signup and view all the answers

    What is the purpose of the Value Added Method in calculating GDP?

    <p>To calculate the total value added at each stage of production</p> Signup and view all the answers

    What is the primary reward for entrepreneurship?

    <p>Profit, which compensates for the risks and efforts involved</p> Signup and view all the answers

    What is the function of investment in the circular flow of goods and services?

    <p>To invest in capital goods like machinery and buildings</p> Signup and view all the answers

    What is the primary source of wealth?

    <p>Savings</p> Signup and view all the answers

    What is the role of government in the circular flow of goods and services?

    <p>To collect taxes and redistribute income through spending and transfers</p> Signup and view all the answers

    What is the term for the increase in a nation's output of goods and services?

    <p>Economic growth</p> Signup and view all the answers

    What is the Gini Coefficient used to measure?

    <p>Wealth distribution</p> Signup and view all the answers

    What is the Expenditure Method of calculating GDP?

    <p>Sum of all expenditures made on final goods and services</p> Signup and view all the answers

    What is the primary function of the foreign sector in the circular flow of goods and services?

    <p>To engage in international trade and finance, affecting the domestic economy through exports and imports</p> Signup and view all the answers

    What is the term for the level of wealth, comfort, and material goods available to a particular demographic group within a geographical area?

    <p>Standard of living</p> Signup and view all the answers

    What is Gross Fixed Capital Formation (I) in national income accounting?

    <p>Reflects total investment in physical assets that will be used in future production</p> Signup and view all the answers

    What is the importance of entrepreneurs in an economy?

    <p>They generate wealth, create jobs, and foster competition</p> Signup and view all the answers

    What is the characteristic of a mixed economy?

    <p>Coexistence of private and public sectors</p> Signup and view all the answers

    What is the relationship between capital and economic growth?

    <p>Capital is essential for maintaining and expanding production, and therefore contributes to economic growth</p> Signup and view all the answers

    What is a factor that influences economic growth?

    <p>Capital investment</p> Signup and view all the answers

    What is an advantage of a market economy?

    <p>Efficient production and innovation driven by profit motives</p> Signup and view all the answers

    What is the term for the ability to generate income, potential for value appreciation or depreciation, and investments that yield returns?

    <p>Wealth</p> Signup and view all the answers

    What is a disadvantage of a centrally planned economy?

    <p>Lack of individual and corporate incentive to improve efficiency or innovate</p> Signup and view all the answers

    What is the primary goal of efforts to redistribute wealth?

    <p>To balance wealth</p> Signup and view all the answers

    What is an advantage of a mixed economy in South Africa?

    <p>Balances freedom of market operations with government oversight</p> Signup and view all the answers

    What is a characteristic of economic development?

    <p>Involves broad-based improvements in the standard of living</p> Signup and view all the answers

    What is the term for the curve that illustrates the actual distribution of wealth across a population?

    <p>Lorenz Curve</p> Signup and view all the answers

    What is a role of the government in South Africa's mixed economy?

    <p>Providing social services to improve public welfare</p> Signup and view all the answers

    What is a factor that determines the standard of living?

    <p>All of the above</p> Signup and view all the answers

    What is the importance of understanding the circular flow of goods and services?

    <p>Helps in understanding the effects of various sectors on economic growth and stability</p> Signup and view all the answers

    What is the primary difference between economic development and economic growth?

    <p>Economic development is an improvement in the overall standard of living, while economic growth can occur without widespread benefits</p> Signup and view all the answers

    What is Gross National Income (GNI)?

    <p>GDP plus net income from abroad</p> Signup and view all the answers

    What is Expenditure on Gross Domestic Product (GDE)?

    <p>Total domestic expenditure on goods and services, adjusted for imports and exports</p> Signup and view all the answers

    What is the primary purpose of the Human Development Index (HDI)?

    <p>To measure a country's development through factors like life expectancy, education, and GDP per capita</p> Signup and view all the answers

    What is a common characteristic of developing countries?

    <p>Low standard of living</p> Signup and view all the answers

    What is the primary goal of the Reconstruction and Development Programme (RDP)?

    <p>To reduce poverty and inequality</p> Signup and view all the answers

    What is a strategy for fostering development?

    <p>Investing in both directly and indirectly productive infrastructure</p> Signup and view all the answers

    What is the primary characteristic of Indigenous Knowledge Systems (IKS)?

    <p>They are local and culture-specific</p> Signup and view all the answers

    What is the estimated number of people living in absolute poverty?

    <p>1.7 billion</p> Signup and view all the answers

    What is the primary difference between absolute poverty and relative poverty?

    <p>Absolute poverty involves the lack of basic human needs, while relative poverty is a comparative lack within society</p> Signup and view all the answers

    What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR)?

    <p>To promote economic growth and redistribution</p> Signup and view all the answers

    What is a strategy for development that involves transitioning from a traditional society to one characterized by high mass consumption?

    <p>Economic development involves transitioning through various stages</p> Signup and view all the answers

    What is the primary goal of South Africa's economic initiatives?

    <p>To enhance growth, competitiveness, and employment</p> Signup and view all the answers

    Which sector of South Africa's economy is the largest contributor to GDP?

    <p>Tertiary sector</p> Signup and view all the answers

    What is the primary purpose of the poverty line income?

    <p>To indicate the minimum income needed to cover basic needs</p> Signup and view all the answers

    What is the primary function of South Africa's infrastructure?

    <p>To enhance economic competitiveness</p> Signup and view all the answers

    What is a characteristic of commodity money?

    <p>It is a physical good used as money</p> Signup and view all the answers

    What is the main challenge facing South Africa's energy sector?

    <p>Insufficient emphasis on renewable energy</p> Signup and view all the answers

    What is the main function of the South African Reserve Bank (SARB)?

    <p>To implement monetary policy and control inflation</p> Signup and view all the answers

    What is the significance of the secondary sector in South Africa's economy?

    <p>It produces consumer and capital goods</p> Signup and view all the answers

    What is the historical context of discrimination and exclusion in South Africa's primary sector?

    <p>During the apartheid era, black South Africans were deprived of land ownership and equal opportunities in farming and mining</p> Signup and view all the answers

    What is a consequence of bank failures?

    <p>Losses for depositors and investors</p> Signup and view all the answers

    What is the purpose of the Land Redistribution Programme in South Africa?

    <p>To address historical inequalities in land ownership</p> Signup and view all the answers

    What is the primary function of micro-lending?

    <p>To provide small loans to individuals unable to access traditional bank financing</p> Signup and view all the answers

    What is the significance of Black Economic Empowerment (BEE) in South Africa's economy?

    <p>It improves access and equity for black individuals</p> Signup and view all the answers

    What is a characteristic of fiat money?

    <p>It is a government-issued currency not backed by a physical commodity</p> Signup and view all the answers

    What is the primary function of the transport sector in South Africa's economy?

    <p>To facilitate domestic and international trade</p> Signup and view all the answers

    What is the technical function of money as a medium of exchange?

    <p>To facilitate the buying and selling of goods and services</p> Signup and view all the answers

    What is the purpose of the headcount index?

    <p>To determine the percentage of the population living below the poverty line</p> Signup and view all the answers

    What is the primary goal of the communication sector in South Africa's economy?

    <p>To support economic competitiveness</p> Signup and view all the answers

    What is the primary role of banks in the creation of money?

    <p>To extend loans exceeding their cash reserves</p> Signup and view all the answers

    Why is stability in the banking system important?

    <p>It promotes economic growth and stability</p> Signup and view all the answers

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