CH SUM: Economic Pursuits

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What is a primary aspect of economic growth?

Increase in employment
Increase in the capacity of an economy to produce goods and services (correct)
Increase in income
Increase in health and education

What is a key characteristic of wealth in economic terms?

Ability to generate income (correct)
Potential for investment returns
Ability to appreciate or depreciate in value
Potential for income generation

What is the primary source of wealth?

Profits from business activities
Luck
Savings (correct)
Inheritance

What is used to illustrate the actual distribution of wealth across a population?

Lorenz Curve (C) Signup and view all the answers

What is the range of the Gini Coefficient?

0 to 1 (D) Signup and view all the answers

What is a factor that can contribute to uneven distribution of wealth?

All of the above (D) Signup and view all the answers

What is a result of unequal wealth distribution?

Economic disparity (A) Signup and view all the answers

What is a characteristic of the Gini Coefficient?

It is valued for its straightforward interpretative power (A) Signup and view all the answers

What is a factor that can provide certain individuals with a financial head start?

Inheritance (C) Signup and view all the answers

What is a consequence of structural inequality and personal health?

Impact on economic opportunities (D) Signup and view all the answers

What is the primary goal of methods of wealth redistribution?

To balance wealth and income (B) Signup and view all the answers

What is economic growth measured in?

Nominal and real terms, and GDP per capita (C) Signup and view all the answers

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 (C) Signup and view all the answers

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 (C) Signup and view all the answers

What is the purpose of resource improvement in economic development?

To enhance the quality and value of natural resources (B) Signup and view all the answers

What is a common characteristic of developing countries?

Low standard of living and high poverty rates (D) Signup and view all the answers

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

To measure a country's development (D) Signup and view all the answers

What is an example of a strategy for economic development?

Modernizing agriculture (C) Signup and view all the answers

What is the purpose of promoting entrepreneurship in economic development?

To create jobs and diversify goods and services (B) Signup and view all the answers

What is the impact of economic growth on standard of living?

It typically improves living standards (C) Signup and view all the answers

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

To promote economic growth and redistribution (B) Signup and view all the answers

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

It is locally and culturally specific (C) Signup and view all the answers

What is the definition of absolute poverty according to the World Bank?

The inability to attain a minimum standard of living (B) Signup and view all the answers

What is the purpose of the poverty line income?

To indicate the minimum income needed to cover basic needs (A) Signup and view all the answers

What is a key characteristic of money in an economy?

It is universally accepted in transactions (C) Signup and view all the answers

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

To facilitate the buying and selling of goods and services (A) Signup and view all the answers

What is the main goal of the Millennium Development Goals (MDG)?

To eradicate extreme poverty and hunger globally (B) Signup and view all the answers

What is the main characteristic of relative poverty?

It is a comparative lack of resources within a society (A) Signup and view all the answers

What is the purpose of the headcount index in measuring poverty?

To determine the percentage of the population living below the poverty line (A) Signup and view all the answers

What is the main goal of the Reconstruction and Development Programme (RDP) in South Africa?

To restructure the economy to enable sustainable development (D) Signup and view all the answers

What is an example of commodity money?

Gold coins (B) Signup and view all the answers

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

To implement monetary policy and control inflation (C) Signup and view all the answers

What is the result of credit creation by banks?

An increase in the money supply (D) Signup and view all the answers

What is the purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (D) Signup and view all the answers

What is a consequence of bank failures?

Losses for depositors and investors (D) Signup and view all the answers

What is the role of reserve requirements in monetary policy?

To control the amount of money banks can lend (D) Signup and view all the answers

What is the term for digital or paper representations of money?

Bank money (B) Signup and view all the answers

What is the main purpose of monetary policy?

To control inflation (D) Signup and view all the answers

What is the role of the South African Reserve Bank (SARB) in relation to the government?

To act as a banker to the government (C) Signup and view all the answers

What is the consequence of a lack of stability in the banking system?

Potential systemic risk affecting the broader economy (A) Signup and view all the answers

What is closely tied to the standard of living?

Economic growth (D) Signup and view all the answers

What is a characteristic of wealth in economic terms?

Investments that yield returns and potential for value appreciation or depreciation (A) Signup and view all the answers

What is used to measure wealth inequality?

Both Lorenz Curve and Gini Coefficient (C) Signup and view all the answers

What can result from unequal wealth distribution?

Structural inequality and personal health (D) Signup and view all the answers

What is a source of wealth?

All of the above (D) Signup and view all the answers

What is the range of the Gini Coefficient?

0 to 1 (D) Signup and view all the answers

What can provide certain individuals with a financial head start?

Inheritance (B) Signup and view all the answers

What can impact economic opportunities?

Structural inequality and personal health (B) Signup and view all the answers

What is a common aspect of economic systems that can favor certain groups?

Economic systems themselves (B) Signup and view all the answers

What is a natural variation that contributes to economic disparity?

Skills and talent (D) Signup and view all the answers

What is the primary goal of methods of wealth redistribution?

To balance wealth and income (D) Signup and view all the answers

Which of the following is a factor that influences economic growth?

All of the above (D) Signup and view all the answers

What is a characteristic of developing countries?

Low productivity (B) Signup and view all the answers

What type of money is backed by a physical commodity?

Commodity Money (A) Signup and view all the answers

What is the purpose of reserve requirements in monetary policy?

To limit the amount of money banks can lend (A) Signup and view all the answers

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

To measure a country's development (A) Signup and view all the answers

What is the primary goal of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (A) Signup and view all the answers

Which of the following is a strategy for economic development?

Modernization of agriculture (C) Signup and view all the answers

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 (B) Signup and view all the answers

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 (C) Signup and view all the answers

What is the role of capital investment in economic growth?

It directly impacts productive capacity (B) Signup and view all the answers

What is the consequence of a lack of stability in the banking system?

Erosion of public trust in the banking system (B) Signup and view all the answers

What is the main purpose of monetary policy?

To control inflation (B) Signup and view all the answers

What is a factor that determines standard of living?

All of the above (D) Signup and view all the answers

What is the purpose of promoting entrepreneurship in economic development?

To create jobs and diversify goods and services (D) Signup and view all the answers

What is the result of credit creation by banks?

An increase in the money supply (C) Signup and view all the answers

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

Higher economic growth typically improves standard of living (D) Signup and view all the answers

What type of bank deposit is available on-demand?

Demand Deposits (D) Signup and view all the answers

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

To implement monetary policy (B) Signup and view all the answers

What is the primary aim of South Africa's Growth, Employment, and Redistribution Policy (GEAR)?

To stabilize the economy and promote growth and redistribution (C) Signup and view all the answers

What is the term for digital or paper representations of money?

Bank Money (D) Signup and view all the answers

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 (B) Signup and view all the answers

What is the definition of poverty according to the World Bank?

The inability to attain a minimum standard of living (A) Signup and view all the answers

What is the purpose of the poverty line income?

To indicate the minimum income needed to cover basic needs (D) Signup and view all the answers

What is a characteristic of money in an economy?

It is a medium of exchange and a store of value (C) Signup and view all the answers

What is the primary goal of the Millennium Development Goals (MDG)?

To eradicate extreme poverty and hunger globally (A) Signup and view all the answers

What is the main characteristic of relative poverty?

It is defined by a comparative lack within society (D) Signup and view all the answers

What is the purpose of the headcount index in measuring poverty?

To determine the percentage of the population living below the poverty line (B) Signup and view all the answers

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

To address poverty and inequality (D) Signup and view all the answers

What is a characteristic of money that makes it a store of value?

It retains its value over time (B) Signup and view all the answers

What is the primary goal of economic growth?

To increase the capacity of an economy to produce goods and services (A) Signup and view all the answers

What is the primary source of wealth creation?

Savings (C) Signup and view all the answers

What is the purpose of the Lorenz Curve?

To illustrate the actual distribution of wealth across a population (C) Signup and view all the answers

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 (C) Signup and view all the answers

What is a characteristic of the Gini Coefficient?

It is a numerical representation of wealth inequality (B) Signup and view all the answers

What is a natural variation that contributes to economic disparity?

Skills and talent (B) Signup and view all the answers

What is the significance of Indigenous Knowledge Systems (IKS) in South Africa?

They are valuable for addressing local healthcare needs and environmental management (B) Signup and view all the answers

What is the definition of poverty according to the World Bank?

The inability to attain a minimum standard of living (B) Signup and view all the answers

What is a result of economic growth?

Improved health and education (C) Signup and view all the answers

What is the characteristic of money that makes it a store of value?

Stability and scarcity (D) Signup and view all the answers

What is a characteristic of wealth in economic terms?

It is an abundance of valuable resources or material possessions (B) Signup and view all the answers

What is the primary goal of the Millennium Development Goals (MDG)?

To eradicate extreme poverty and hunger by 2015 (C) Signup and view all the answers

What is a factor that can impact economic opportunities?

Discrimination and health (A) Signup and view all the answers

What is a common aspect of economic systems that can favor certain groups?

Economic systems themselves (B) Signup and view all the answers

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

To facilitate the buying and selling of goods and services (D) Signup and view all the answers

What is the purpose of the Reconstruction and Development Programme (RDP) in South Africa?

To restructure the economy to enable sustainable development (C) Signup and view all the answers

What is a consequence of unequal wealth distribution?

Social and economic inequality (C) Signup and view all the answers

What is an example of fiat money?

Banknotes (D) Signup and view all the answers

What is a characteristic of relative poverty?

A comparative lack within society (C) Signup and view all the answers

What is the purpose of the headcount index in measuring poverty?

To measure the percentage of the population living below the poverty line (D) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (A) Signup and view all the answers

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

To implement monetary policy to control inflation (C) Signup and view all the answers

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 (D) Signup and view all the answers

What is a consequence of bank failures?

Losses for depositors and investors (A) Signup and view all the answers

What is the term for digital or paper representations of money?

Bank money (B) Signup and view all the answers

What is a monetary policy tool used by the SARB?

Repo rate adjustments (B) Signup and view all the answers

What is the primary goal of monetary policy?

To control inflation (C) Signup and view all the answers

What is a type of bank deposit?

Demand deposit (C) Signup and view all the answers

What is a consequence of a lack of stability in the banking system?

Erosion of public trust in the banking system (A) Signup and view all the answers

What is a role of the SARB in relation to commercial banks?

To act as a banker to the government and commercial banks (C) Signup and view all the answers

What is the primary goal of economic development?

Broad-based improvements in the standard of living of a society (C) Signup and view all the answers

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 (A) Signup and view all the answers

Which of the following is a factor that influences economic growth?

All of the above (D) Signup and view all the answers

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 (C) Signup and view all the answers

What is the primary goal of modernization of agriculture in economic development?

To reduce dependence on agriculture (B) Signup and view all the answers

What is a common characteristic of developing countries?

Low standard of living and high population growth (D) Signup and view all the answers

What is the primary purpose of promoting entrepreneurship in economic development?

To create jobs and diversify goods and services (C) Signup and view all the answers

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

Economic growth can occur without an improvement in standard of living (C) Signup and view all the answers

What is the purpose of capital investment in economic development?

To stimulate growth by investing in productive assets and infrastructure (B) Signup and view all the answers

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 (B) Signup and view all the answers

Which of the following is NOT a characteristic of wealth in economic terms?

Perfect equality of distribution (A) Signup and view all the answers

What is the primary purpose of measuring wealth inequality?

To illustrate the actual distribution of wealth across a population (C) Signup and view all the answers

Which of the following factors does NOT contribute to uneven distribution of wealth?

Perfect equality of wealth distribution (A) Signup and view all the answers

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

Economic growth is closely tied to standard of living (B) Signup and view all the answers

What is the primary source of wealth creation?

Savings (A) Signup and view all the answers

What is the purpose of the Gini Coefficient?

To provide a numerical representation of wealth inequality (C) Signup and view all the answers

Which of the following is a consequence of unequal wealth distribution?

Increased inequality within and across nations (A) Signup and view all the answers

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 (A) Signup and view all the answers

Which of the following is NOT a characteristic of the Lorenz Curve?

Provides a numerical representation of wealth inequality (A) Signup and view all the answers

What is the relationship between economic growth and wealth creation?

Economic growth is closely tied to wealth creation (A) Signup and view all the answers

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. (C) Signup and view all the answers

What is the primary role of capital investment in economic development?

To stimulate growth by investing in productive assets and infrastructure. (B) Signup and view all the answers

What type of money is government-issued but not backed by a physical commodity?

Fiat Money (A) Signup and view all the answers

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. (C) Signup and view all the answers

What is the primary purpose of labor quality improvement in economic development?

To enhance labor productivity through education and healthcare. (D) Signup and view all the answers

What is the primary function of a central bank in relation to the government?

To act as a banker to the government (B) Signup and view all the answers

Which of the following is a characteristic of developing countries?

High population growth rates and low life expectancy. (A) Signup and view all the answers

What is a consequence of bank failures?

Job losses for employees (C) Signup and view all the answers

What is the purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (B) Signup and view all the answers

What is the primary goal of resource improvement in economic development?

To enhance the quality and value of natural resources through beneficiation processes. (A) Signup and view all the answers

What is a result of credit creation by banks?

An increase in the money supply (C) Signup and view all the answers

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. (B) Signup and view all the answers

Which of the following is a consequence of high population growth rates in developing countries?

Exacerbated economic and social challenges. (D) Signup and view all the answers

What is the term for the process by which banks extend loans exceeding their cash reserves?

Credit creation (D) Signup and view all the answers

What is the primary goal of monetary policy?

To control inflation (B) Signup and view all the answers

What is the primary role of government policies in economic development?

To influence economic stability and public services. (A) Signup and view all the answers

Which of the following is a strategy for economic development?

Reducing dependence on agriculture through industrialization. (A) Signup and view all the answers

What is the role of reserve requirements in monetary policy?

To regulate credit creation (C) Signup and view all the answers

What is a characteristic of a stable banking system?

It promotes confidence (B) Signup and view all the answers

What is the term for digital or paper representations of money?

Bank Money (D) Signup and view all the answers

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 (D) Signup and view all the answers

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

They are dynamic and continuously evolving (B) Signup and view all the answers

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

To maintain its value over time, allowing savings (A) Signup and view all the answers

What is the main goal of the Millennium Development Goals (MDG)?

To eradicate extreme poverty and hunger (C) Signup and view all the answers

What is the primary characteristic of relative poverty?

It is defined by a comparative lack within society (C) Signup and view all the answers

What is the purpose of the poverty line income?

To indicate the minimum income needed to cover basic needs (B) Signup and view all the answers

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

To restructure the economy to enable sustainable development (C) Signup and view all the answers

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

To regulate the financial system and maintain monetary stability (B) Signup and view all the answers

What is the result of credit creation by banks?

An increase in the money supply (B) Signup and view all the answers

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

To stabilize the economy and promote growth and redistribution (B) Signup and view all the answers

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 (C) Signup and view all the answers

What is the main advantage of using the Gini Coefficient to measure wealth inequality?

It is easy to calculate and interpret (C) Signup and view all the answers

What is a potential consequence of inheritance as a source of wealth?

It can provide certain individuals with a financial head start (B) Signup and view all the answers

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 (B) Signup and view all the answers

What is a potential reason why certain economic systems may inherently favor certain groups?

Because they are designed to benefit specific groups or classes (D) Signup and view all the answers

What is a potential consequence of discrimination and health disparities on economic opportunities?

It can impact economic opportunities by limiting access to resources (B) Signup and view all the answers

What is a characteristic of wealth distribution across nations?

It shows significant inequality within and across nations (A) Signup and view all the answers

What is the primary purpose of measuring wealth inequality?

To understand the distribution of wealth and its consequences (C) Signup and view all the answers

What is a significant challenge that South Africa faces in its development endeavors?

Inadequate infrastructure (B) Signup and view all the answers

What is a natural variation that contributes to economic disparity?

Skills and talent (D) Signup and view all the answers

What is the relationship between wealth creation and economic growth?

Wealth creation is a process that contributes to economic growth (A) Signup and view all the answers

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

They are local and culture-specific (A) Signup and view all the answers

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 (B) Signup and view all the answers

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

To facilitate the buying and selling of goods and services (A) Signup and view all the answers

What is the main goal of the Millennium Development Goals (MDG)?

To eradicate extreme poverty and hunger by 2015 (B) Signup and view all the answers

What is the primary purpose of the poverty line income?

To indicate the minimum income needed to cover basic needs (A) Signup and view all the answers

What is a key characteristic of the South African economy?

It is an advanced financial landscape with a well-established banking system (B) Signup and view all the answers

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 (D) Signup and view all the answers

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

To stabilize the economy and promote growth and redistribution (C) Signup and view all the answers

What is a primary factor that differentiates economic development from economic growth?

Broad-based improvements in the standard of living of a society (A) Signup and view all the answers

Which of the following is a characteristic of a developing country?

Low standard of living (A) Signup and view all the answers

What is the primary goal of promoting entrepreneurship in economic development?

To create jobs and diversify goods and services (B) Signup and view all the answers

What is the Human Development Index (HDI) used to measure?

A country's development through factors like life expectancy, education, and GDP per capita (C) Signup and view all the answers

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 (C) Signup and view all the answers

Which of the following is a factor that influences economic growth?

All of the above (D) Signup and view all the answers

What is the primary goal of resource improvement in economic development?

To enhance the quality and value of natural resources (A) Signup and view all the answers

What is the primary characteristic of economic development in terms of standard of living?

Improvement in the overall standard of living (C) Signup and view all the answers

Which of the following strategies is effective in fostering economic development?

Promoting entrepreneurship (C) Signup and view all the answers

What is the primary impact of economic growth on standard of living?

Higher economic growth rate leads to higher standard of living (D) Signup and view all the answers

What is the primary characteristic of fiat money?

It is not backed by a physical commodity (D) Signup and view all the answers

What is the primary function of credit creation in banking?

To increase the amount of money in circulation (A) Signup and view all the answers

What is the primary purpose of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (D) Signup and view all the answers

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 (C) Signup and view all the answers

What is the consequence of a lack of stability in the banking system?

Erosion of public trust in the banking system (B) Signup and view all the answers

What is the primary goal of monetary policy?

To control inflation (B) Signup and view all the answers

What is the role of reserve requirements in monetary policy?

To control the amount of money banks can lend (D) Signup and view all the answers

What is the term for digital or paper representations of money?

Bank money (C) Signup and view all the answers

What is the primary consequence of bank failures?

Losses for depositors and investors (A) Signup and view all the answers

What is the primary function of the repo rate in monetary policy?

To influence lending rates across the banking sector (B) Signup and view all the answers

What is the primary goal of methods of wealth redistribution?

To balance wealth among different groups (A) Signup and view all the answers

What is measured in nominal terms and real terms?

Economic growth (A) Signup and view all the answers

What is a factor that influences economic growth?

All of the above (C) Signup and view all the answers

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

To measure a country's development (A) Signup and view all the answers

What is a characteristic of developing countries?

Low productivity (C) Signup and view all the answers

What is a strategy for economic development?

All of the above (D) Signup and view all the answers

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 (A) Signup and view all the answers

What is the impact of economic growth on standard of living?

Positive impact (B) Signup and view all the answers

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

They are dynamic and continuously evolving (C) Signup and view all the answers

What is the purpose of promoting entrepreneurship in economic development?

To create jobs and diversify goods and services (A) Signup and view all the answers

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 (D) Signup and view all the answers

What is the purpose of the poverty line income?

To indicate the minimum income needed to cover basic needs (C) Signup and view all the answers

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

To facilitate the buying and selling of goods and services (D) Signup and view all the answers

What is a factor that determines standard of living?

All of the above (D) Signup and view all the answers

What is a characteristic of relative poverty?

It is defined by a comparative lack within society (B) Signup and view all the answers

What is the main goal of the Millennium Development Goals (MDG)?

To eradicate poverty and hunger by 2015 (A) Signup and view all the answers

What is the Reconstruction and Development Programme (RDP) focused on?

Restructuring the economy to enable sustainable development (C) Signup and view all the answers

What is a cause of poverty?

All of the above (D) Signup and view all the answers

What is an effect of poverty?

Social unrest and crime rates (A) Signup and view all the answers

What is the Growth, Employment, and Redistribution Policy (GEAR) aimed at?

To stabilize the economy and promote growth and redistribution (C) Signup and view all the answers

What is the primary characteristic of fiat money?

It is a government-issued currency not backed by a physical commodity (B) Signup and view all the answers

What is the main purpose of credit creation by banks?

To increase the amount of money in circulation (C) Signup and view all the answers

What is the primary goal of micro-lending?

To provide small loans to individuals unable to access traditional bank financing (C) Signup and view all the answers

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 (A) Signup and view all the answers

What is the consequence of a lack of stability in the banking system?

Decreased public trust in the banking system (D) Signup and view all the answers

What is the primary function of the repo rate in monetary policy?

To influence lending rates across the banking sector (A) Signup and view all the answers

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

To control inflation and maintain financial stability (A) Signup and view all the answers

What is the main characteristic of demand deposits?

Funds in checkable accounts, available on-demand (C) Signup and view all the answers

What is the primary role of the South African Reserve Bank (SARB) in terms of currency management?

To issue and manage currency (B) Signup and view all the answers

What is the consequence of bank failures?

Losses for depositors and investors (C) Signup and view all the answers

What is the primary purpose of measuring the distribution of wealth?

To understand the level of inequality within a population (B) Signup and view all the answers

Which of the following is NOT a characteristic of wealth in economic terms?

Intangible assets like skills and education (B) Signup and view all the answers

What is the main advantage of the Gini Coefficient in measuring wealth inequality?

It is easy to calculate and interpret (A) Signup and view all the answers

Which of the following can be a consequence of economic systems that favor certain groups?

Uneven distribution of wealth (A) Signup and view all the answers

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 (B) Signup and view all the answers

Which of the following is a natural variation that contributes to economic disparity?

Skills and talent (B) Signup and view all the answers

What is the primary source of wealth?

Savings (D) Signup and view all the answers

Which of the following can result from unequal distribution of wealth?

Social unrest and inequality (C) Signup and view all the answers

What is the primary goal of measuring economic growth?

To evaluate the performance of an economy over time (C) Signup and view all the answers

Which of the following is a factor that can provide certain individuals with a financial head start?

Inheritance (C) Signup and view all the answers

CH SUM: Economic Pursuits

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Questions and Answers

What is a primary aspect of economic growth?

What is a key characteristic of wealth in economic terms?

What is the primary source of wealth?

What is used to illustrate the actual distribution of wealth across a population?

What is the range of the Gini Coefficient?

What is a factor that can contribute to uneven distribution of wealth?

What is a result of unequal wealth distribution?

What is a characteristic of the Gini Coefficient?

What is a factor that can provide certain individuals with a financial head start?

What is a consequence of structural inequality and personal health?

What is the primary goal of methods of wealth redistribution?

What is economic growth measured in?

What is the definition of standard of living?

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

What is the purpose of resource improvement in economic development?

What is a common characteristic of developing countries?

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

What is an example of a strategy for economic development?

What is the purpose of promoting entrepreneurship in economic development?

What is the impact of economic growth on standard of living?

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

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

What is the definition of absolute poverty according to the World Bank?

What is the purpose of the poverty line income?

What is a key characteristic of money in an economy?

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

What is the main goal of the Millennium Development Goals (MDG)?

What is the main characteristic of relative poverty?

What is the purpose of the headcount index in measuring poverty?

What is the main goal of the Reconstruction and Development Programme (RDP) in South Africa?

What is an example of commodity money?

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

What is the result of credit creation by banks?

What is the purpose of micro-lending?

What is a consequence of bank failures?

What is the role of reserve requirements in monetary policy?

What is the term for digital or paper representations of money?

What is the main purpose of monetary policy?

What is the role of the South African Reserve Bank (SARB) in relation to the government?

What is the consequence of a lack of stability in the banking system?

What is closely tied to the standard of living?

What is a characteristic of wealth in economic terms?

What is used to measure wealth inequality?

What can result from unequal wealth distribution?

What is a source of wealth?

What is the range of the Gini Coefficient?

What can provide certain individuals with a financial head start?

What can impact economic opportunities?

What is a common aspect of economic systems that can favor certain groups?

What is a natural variation that contributes to economic disparity?

What is the primary goal of methods of wealth redistribution?

Which of the following is a factor that influences economic growth?

What is a characteristic of developing countries?

What type of money is backed by a physical commodity?

What is the purpose of reserve requirements in monetary policy?

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

What is the primary goal of micro-lending?

Which of the following is a strategy for economic development?

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

What is the role of the South African Reserve Bank (SARB) in relation to the government?

What is the role of capital investment in economic growth?

What is the consequence of a lack of stability in the banking system?

What is the main purpose of monetary policy?

What is a factor that determines standard of living?

What is the purpose of promoting entrepreneurship in economic development?

What is the result of credit creation by banks?

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

What type of bank deposit is available on-demand?

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

What is the primary aim of South Africa's Growth, Employment, and Redistribution Policy (GEAR)?

What is the term for digital or paper representations of money?

What is the characteristic of Indigenous Knowledge Systems (IKS) that makes them valuable for addressing local health care needs?

What is the definition of poverty according to the World Bank?

What is the purpose of the poverty line income?

What is a characteristic of money in an economy?

What is the primary goal of the Millennium Development Goals (MDG)?