239 Questions
What is a primary aspect of economic growth?
Increase in the capacity of an economy to produce goods and services
What is a key characteristic of wealth in economic terms?
Ability to generate income
What is the primary source of wealth?
Savings
What is used to illustrate the actual distribution of wealth across a population?
Lorenz Curve
What is the range of the Gini Coefficient?
0 to 1
What is a factor that can contribute to uneven distribution of wealth?
All of the above
What is a result of unequal wealth distribution?
Economic disparity
What is a characteristic of the Gini Coefficient?
It is valued for its straightforward interpretative power
What is a factor that can provide certain individuals with a financial head start?
Inheritance
What is a consequence of structural inequality and personal health?
Impact on economic opportunities
What is the primary goal of methods of wealth redistribution?
To balance wealth and income
What is economic growth measured in?
Nominal and real terms, and GDP per capita
What is the definition of standard of living?
The level of wealth, comfort, and material goods available to a particular demographic group within a geographical area
What is the primary difference between economic growth and economic development?
Economic growth is an increase in output, while economic development is an improvement in standard of living
What is the purpose of resource improvement in economic development?
To enhance the quality and value of natural resources
What is a common characteristic of developing countries?
Low standard of living and high poverty rates
What is the Human Development Index (HDI) used for?
To measure a country's development
What is an example of a strategy for economic development?
Modernizing agriculture
What is the purpose of promoting entrepreneurship in economic development?
To create jobs and diversify goods and services
What is the impact of economic growth on standard of living?
It typically improves living standards
What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?
To promote economic growth and redistribution
What is the main characteristic of Indigenous Knowledge Systems (IKS)?
It is locally and culturally specific
What is the definition of absolute poverty according to the World Bank?
The inability to attain a minimum standard of living
What is the purpose of the poverty line income?
To indicate the minimum income needed to cover basic needs
What is a key characteristic of money in an economy?
It is universally accepted in transactions
What is the primary function of money as a medium of exchange?
To facilitate the buying and selling of goods and services
What is the main goal of the Millennium Development Goals (MDG)?
To eradicate extreme poverty and hunger globally
What is the main characteristic of relative poverty?
It is a comparative lack of resources within a society
What is the purpose of the headcount index in measuring poverty?
To determine the percentage of the population living below the poverty line
What is the main goal of the Reconstruction and Development Programme (RDP) in South Africa?
To restructure the economy to enable sustainable development
What is an example of commodity money?
Gold coins
What is the primary function of the South African Reserve Bank (SARB)?
To implement monetary policy and control inflation
What is the result of credit creation by banks?
An increase in the money supply
What is the purpose of micro-lending?
To provide small loans to individuals unable to access traditional bank financing
What is a consequence of bank failures?
Losses for depositors and investors
What is the role of reserve requirements in monetary policy?
To control the amount of money banks can lend
What is the term for digital or paper representations of money?
Bank money
What is the main purpose of monetary policy?
To control inflation
What is the role of the South African Reserve Bank (SARB) in relation to the government?
To act as a banker to the government
What is the consequence of a lack of stability in the banking system?
Potential systemic risk affecting the broader economy
What is closely tied to the standard of living?
Economic growth
What is a characteristic of wealth in economic terms?
Investments that yield returns and potential for value appreciation or depreciation
What is used to measure wealth inequality?
Both Lorenz Curve and Gini Coefficient
What can result from unequal wealth distribution?
Structural inequality and personal health
What is a source of wealth?
All of the above
What is the range of the Gini Coefficient?
0 to 1
What can provide certain individuals with a financial head start?
Inheritance
What can impact economic opportunities?
Structural inequality and personal health
What is a common aspect of economic systems that can favor certain groups?
Economic systems themselves
What is a natural variation that contributes to economic disparity?
Skills and talent
What is the primary goal of methods of wealth redistribution?
To balance wealth and income
Which of the following is a factor that influences economic growth?
All of the above
What is a characteristic of developing countries?
Low productivity
What type of money is backed by a physical commodity?
Commodity Money
What is the purpose of reserve requirements in monetary policy?
To limit the amount of money banks can lend
What is the purpose of the Human Development Index (HDI)?
To measure a country's development
What is the primary goal of micro-lending?
To provide small loans to individuals unable to access traditional bank financing
Which of the following is a strategy for economic development?
Modernization of agriculture
What is the primary difference between economic growth and economic development?
Economic growth is concerned with output, while economic development is concerned with standard of living
What is the role of the South African Reserve Bank (SARB) in relation to the government?
To act as a banker to the government and commercial banks
What is the role of capital investment in economic growth?
It directly impacts productive capacity
What is the consequence of a lack of stability in the banking system?
Erosion of public trust in the banking system
What is the main purpose of monetary policy?
To control inflation
What is a factor that determines standard of living?
All of the above
What is the purpose of promoting entrepreneurship in economic development?
To create jobs and diversify goods and services
What is the result of credit creation by banks?
An increase in the money supply
What is the relationship between economic growth and standard of living?
Higher economic growth typically improves standard of living
What type of bank deposit is available on-demand?
Demand Deposits
What is the primary function of the South African Reserve Bank (SARB)?
To implement monetary policy
What is the primary aim of South Africa's Growth, Employment, and Redistribution Policy (GEAR)?
To stabilize the economy and promote growth and redistribution
What is the term for digital or paper representations of money?
Bank Money
What is the characteristic of Indigenous Knowledge Systems (IKS) that makes them valuable for addressing local health care needs?
They are rooted in specific communities and traditions
What is the definition of poverty according to the World Bank?
The inability to attain a minimum standard of living
What is the purpose of the poverty line income?
To indicate the minimum income needed to cover basic needs
What is a characteristic of money in an economy?
It is a medium of exchange and a store of value
What is the primary goal of the Millennium Development Goals (MDG)?
To eradicate extreme poverty and hunger globally
What is the main characteristic of relative poverty?
It is defined by a comparative lack within society
What is the purpose of the headcount index in measuring poverty?
To determine the percentage of the population living below the poverty line
What is the primary goal of the Reconstruction and Development Programme (RDP) in South Africa?
To address poverty and inequality
What is a characteristic of money that makes it a store of value?
It retains its value over time
What is the primary goal of economic growth?
To increase the capacity of an economy to produce goods and services
What is the primary source of wealth creation?
Savings
What is the purpose of the Lorenz Curve?
To illustrate the actual distribution of wealth across a population
What is the primary objective of South Africa's Accelerated Shared Growth Initiative for South Africa (ASGISA)?
To rectify shortcomings of previous policies and boost economic growth
What is a characteristic of the Gini Coefficient?
It is a numerical representation of wealth inequality
What is a natural variation that contributes to economic disparity?
Skills and talent
What is the significance of Indigenous Knowledge Systems (IKS) in South Africa?
They are valuable for addressing local healthcare needs and environmental management
What is the definition of poverty according to the World Bank?
The inability to attain a minimum standard of living
What is a result of economic growth?
Improved health and education
What is the characteristic of money that makes it a store of value?
Stability and scarcity
What is a characteristic of wealth in economic terms?
It is an abundance of valuable resources or material possessions
What is the primary goal of the Millennium Development Goals (MDG)?
To eradicate extreme poverty and hunger by 2015
What is a factor that can impact economic opportunities?
Discrimination and health
What is a common aspect of economic systems that can favor certain groups?
Economic systems themselves
What is the primary function of money as a medium of exchange?
To facilitate the buying and selling of goods and services
What is the purpose of the Reconstruction and Development Programme (RDP) in South Africa?
To restructure the economy to enable sustainable development
What is a consequence of unequal wealth distribution?
Social and economic inequality
What is an example of fiat money?
Banknotes
What is a characteristic of relative poverty?
A comparative lack within society
What is the purpose of the headcount index in measuring poverty?
To measure the percentage of the population living below the poverty line
What is the primary purpose of micro-lending?
To provide small loans to individuals unable to access traditional bank financing
What is a key function of the South African Reserve Bank (SARB)?
To implement monetary policy to control inflation
What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR) in South Africa?
To stabilize the economy and promote growth and redistribution
What is a consequence of bank failures?
Losses for depositors and investors
What is the term for digital or paper representations of money?
Bank money
What is a monetary policy tool used by the SARB?
Repo rate adjustments
What is the primary goal of monetary policy?
To control inflation
What is a type of bank deposit?
Demand deposit
What is a consequence of a lack of stability in the banking system?
Erosion of public trust in the banking system
What is a role of the SARB in relation to commercial banks?
To act as a banker to the government and commercial banks
What is the primary goal of economic development?
Broad-based improvements in the standard of living of a society
What is the main difference between economic growth and economic development?
Economic growth is an increase in output, while economic development is an improvement in standard of living
Which of the following is a factor that influences economic growth?
All of the above
What is the purpose of the Human Development Index (HDI)?
To measure a country's development through factors like life expectancy, education, and GDP per capita
What is the primary goal of modernization of agriculture in economic development?
To reduce dependence on agriculture
What is a common characteristic of developing countries?
Low standard of living and high population growth
What is the primary purpose of promoting entrepreneurship in economic development?
To create jobs and diversify goods and services
What is the relationship between economic growth and standard of living?
Economic growth can occur without an improvement in standard of living
What is the purpose of capital investment in economic development?
To stimulate growth by investing in productive assets and infrastructure
What is the primary difference between nominal and real terms in measuring economic growth?
Nominal terms include inflation, while real terms are adjusted for inflation
Which of the following is NOT a characteristic of wealth in economic terms?
Perfect equality of distribution
What is the primary purpose of measuring wealth inequality?
To illustrate the actual distribution of wealth across a population
Which of the following factors does NOT contribute to uneven distribution of wealth?
Perfect equality of wealth distribution
What is the relationship between economic growth and standard of living?
Economic growth is closely tied to standard of living
What is the primary source of wealth creation?
Savings
What is the purpose of the Gini Coefficient?
To provide a numerical representation of wealth inequality
Which of the following is a consequence of unequal wealth distribution?
Increased inequality within and across nations
What is the primary goal of measuring economic growth?
To reflect an increase in the capacity of an economy to produce goods and services over time
Which of the following is NOT a characteristic of the Lorenz Curve?
Provides a numerical representation of wealth inequality
What is the relationship between economic growth and wealth creation?
Economic growth is closely tied to wealth creation
What is the primary difference between economic growth and economic development in terms of standard of living?
Economic growth measures output, while economic development measures welfare.
What is the primary role of capital investment in economic development?
To stimulate growth by investing in productive assets and infrastructure.
What type of money is government-issued but not backed by a physical commodity?
Fiat Money
Which of the following is a limitation of using per capita GDP to measure standard of living?
It does not account for income distribution disparities within countries.
What is the primary purpose of labor quality improvement in economic development?
To enhance labor productivity through education and healthcare.
What is the primary function of a central bank in relation to the government?
To act as a banker to the government
Which of the following is a characteristic of developing countries?
High population growth rates and low life expectancy.
What is a consequence of bank failures?
Job losses for employees
What is the purpose of micro-lending?
To provide small loans to individuals unable to access traditional bank financing
What is the primary goal of resource improvement in economic development?
To enhance the quality and value of natural resources through beneficiation processes.
What is a result of credit creation by banks?
An increase in the money supply
What is the primary purpose of the Human Development Index (HDI)?
To measure a country's development through factors like life expectancy, education, and GDP per capita.
Which of the following is a consequence of high population growth rates in developing countries?
Exacerbated economic and social challenges.
What is the term for the process by which banks extend loans exceeding their cash reserves?
Credit creation
What is the primary goal of monetary policy?
To control inflation
What is the primary role of government policies in economic development?
To influence economic stability and public services.
Which of the following is a strategy for economic development?
Reducing dependence on agriculture through industrialization.
What is the role of reserve requirements in monetary policy?
To regulate credit creation
What is a characteristic of a stable banking system?
It promotes confidence
What is the term for digital or paper representations of money?
Bank Money
What is the primary objective of the Accelerated Shared Growth Initiative for South Africa (ASGISA)?
To rectify shortcomings of previous policies and boost economic growth
What is the key characteristic of Indigenous Knowledge Systems (IKS)?
They are dynamic and continuously evolving
What is the primary function of money as a store of value?
To maintain its value over time, allowing savings
What is the main goal of the Millennium Development Goals (MDG)?
To eradicate extreme poverty and hunger
What is the primary characteristic of relative poverty?
It is defined by a comparative lack within society
What is the purpose of the poverty line income?
To indicate the minimum income needed to cover basic needs
What is the primary goal of the Reconstruction and Development Programme (RDP)?
To restructure the economy to enable sustainable development
What is the primary function of the South African Reserve Bank (SARB)?
To regulate the financial system and maintain monetary stability
What is the result of credit creation by banks?
An increase in the money supply
What is the primary goal of the Growth, Employment, and Redistribution Policy (GEAR)?
To stabilize the economy and promote growth and redistribution
What is the primary reason why economic growth is closely tied to the standard of living?
Because economic growth indirectly affects health and education through wealth creation
What is the main advantage of using the Gini Coefficient to measure wealth inequality?
It is easy to calculate and interpret
What is a potential consequence of inheritance as a source of wealth?
It can provide certain individuals with a financial head start
What is the primary difference between wealth creation and economic growth?
Wealth creation is a process that generates income, while economic growth is an increase in the capacity to produce goods and services
What is a potential reason why certain economic systems may inherently favor certain groups?
Because they are designed to benefit specific groups or classes
What is a potential consequence of discrimination and health disparities on economic opportunities?
It can impact economic opportunities by limiting access to resources
What is a characteristic of wealth distribution across nations?
It shows significant inequality within and across nations
What is the primary purpose of measuring wealth inequality?
To understand the distribution of wealth and its consequences
What is a significant challenge that South Africa faces in its development endeavors?
Inadequate infrastructure
What is a natural variation that contributes to economic disparity?
Skills and talent
What is the relationship between wealth creation and economic growth?
Wealth creation is a process that contributes to economic growth
What is a key characteristic of Indigenous Knowledge Systems (IKS)?
They are local and culture-specific
What is the main difference between absolute and relative poverty?
Absolute poverty is the lack of basic human needs, while relative poverty is a comparative lack within society
What is the primary function of money as a medium of exchange?
To facilitate the buying and selling of goods and services
What is the main goal of the Millennium Development Goals (MDG)?
To eradicate extreme poverty and hunger by 2015
What is the primary purpose of the poverty line income?
To indicate the minimum income needed to cover basic needs
What is a key characteristic of the South African economy?
It is an advanced financial landscape with a well-established banking system
What is the primary goal of the Accelerated Shared Growth Initiative for South Africa (ASGISA)?
To rectify the shortcomings of previous policies and boost economic growth
What is the primary function of the Growth, Employment, and Redistribution Policy (GEAR)?
To stabilize the economy and promote growth and redistribution
What is a primary factor that differentiates economic development from economic growth?
Broad-based improvements in the standard of living of a society
Which of the following is a characteristic of a developing country?
Low standard of living
What is the primary goal of promoting entrepreneurship in economic development?
To create jobs and diversify goods and services
What is the Human Development Index (HDI) used to measure?
A country's development through factors like life expectancy, education, and GDP per capita
What is the primary difference between economic growth and economic development in terms of standard of living?
Economic growth increases output, while economic development improves living standards
Which of the following is a factor that influences economic growth?
All of the above
What is the primary goal of resource improvement in economic development?
To enhance the quality and value of natural resources
What is the primary characteristic of economic development in terms of standard of living?
Improvement in the overall standard of living
Which of the following strategies is effective in fostering economic development?
Promoting entrepreneurship
What is the primary impact of economic growth on standard of living?
Higher economic growth rate leads to higher standard of living
What is the primary characteristic of fiat money?
It is not backed by a physical commodity
What is the primary function of credit creation in banking?
To increase the amount of money in circulation
What is the primary purpose of micro-lending?
To provide small loans to individuals unable to access traditional bank financing
What is the primary role of the South African Reserve Bank (SARB) in relation to the government?
To act as a banker to the government
What is the consequence of a lack of stability in the banking system?
Erosion of public trust in the banking system
What is the primary goal of monetary policy?
To control inflation
What is the role of reserve requirements in monetary policy?
To control the amount of money banks can lend
What is the term for digital or paper representations of money?
Bank money
What is the primary consequence of bank failures?
Losses for depositors and investors
What is the primary function of the repo rate in monetary policy?
To influence lending rates across the banking sector
What is the primary goal of methods of wealth redistribution?
To balance wealth among different groups
What is measured in nominal terms and real terms?
Economic growth
What is a factor that influences economic growth?
All of the above
What is the Human Development Index (HDI) used for?
To measure a country's development
What is a characteristic of developing countries?
Low productivity
What is a strategy for economic development?
All of the above
What is the primary goal of the Accelerated Shared Growth Initiative for South Africa (ASGISA)?
To promote sustainable economic growth and rectify shortcomings of previous policies
What is the impact of economic growth on standard of living?
Positive impact
What is a characteristic of Indigenous Knowledge Systems (IKS)?
They are dynamic and continuously evolving
What is the purpose of promoting entrepreneurship in economic development?
To create jobs and diversify goods and services
What is the difference between economic growth and economic development?
Economic growth is an increase in output, while economic development is an improvement in standard of living
What is the purpose of the poverty line income?
To indicate the minimum income needed to cover basic needs
What is a function of money as a medium of exchange?
To facilitate the buying and selling of goods and services
What is a factor that determines standard of living?
All of the above
What is a characteristic of relative poverty?
It is defined by a comparative lack within society
What is the main goal of the Millennium Development Goals (MDG)?
To eradicate poverty and hunger by 2015
What is the Reconstruction and Development Programme (RDP) focused on?
Restructuring the economy to enable sustainable development
What is a cause of poverty?
All of the above
What is an effect of poverty?
Social unrest and crime rates
What is the Growth, Employment, and Redistribution Policy (GEAR) aimed at?
To stabilize the economy and promote growth and redistribution
What is the primary characteristic of fiat money?
It is a government-issued currency not backed by a physical commodity
What is the main purpose of credit creation by banks?
To increase the amount of money in circulation
What is the primary goal of micro-lending?
To provide small loans to individuals unable to access traditional bank financing
What is the role of the South African Reserve Bank (SARB) in relation to the government?
It acts as a banker to the government and commercial banks
What is the consequence of a lack of stability in the banking system?
Decreased public trust in the banking system
What is the primary function of the repo rate in monetary policy?
To influence lending rates across the banking sector
What is the main goal of the South African Reserve Bank (SARB) in terms of monetary policy?
To control inflation and maintain financial stability
What is the main characteristic of demand deposits?
Funds in checkable accounts, available on-demand
What is the primary role of the South African Reserve Bank (SARB) in terms of currency management?
To issue and manage currency
What is the consequence of bank failures?
Losses for depositors and investors
What is the primary purpose of measuring the distribution of wealth?
To understand the level of inequality within a population
Which of the following is NOT a characteristic of wealth in economic terms?
Intangible assets like skills and education
What is the main advantage of the Gini Coefficient in measuring wealth inequality?
It is easy to calculate and interpret
Which of the following can be a consequence of economic systems that favor certain groups?
Uneven distribution of wealth
What is the primary difference between economic growth and economic development?
Economic growth refers to an increase in GDP, while economic development refers to an increase in standard of living
Which of the following is a natural variation that contributes to economic disparity?
Skills and talent
What is the primary source of wealth?
Savings
Which of the following can result from unequal distribution of wealth?
Social unrest and inequality
What is the primary goal of measuring economic growth?
To evaluate the performance of an economy over time
Which of the following is a factor that can provide certain individuals with a financial head start?
Inheritance
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